Gable Mortgages has launched its 100% loan-to-value mortgage product range, as it targets a larger share of the £82bn UK first-time buyer market.
The launch, which includes products tailored to both standard residential purchases and selected new-build homes, is in direct response to market demand, with unaffordable deposit requirements the biggest barrier facing prospective first-time homeowners in the UK.
Key features of the product range include: 100% LTV, interest rate: from 6.4%, five-year fixed rate term, fee of 0 -1% (product dependent); enhanced affordability provisions for eligible key workers
Gable Mortgages’ standard five-year fixed Zero Deposit Mortgage for established residential properties is priced at 6.60% and is open to eligible first-time buyers and next-time buyers, with loan sizes from £125,000 to £1m and repayment terms from five to 35 years. Applicants must be aged 21 or over at the start of the mortgage and no older than 75 at the end of the term, and have a minimum income of £27,780, reducing to £25,000 for eligible key workers.
A 100% LTV product is also currently available on select Barratt Redrow developments, opening a no-deposit route into the new-build market through the UK’s largest housebuilder. The five-year fixed-rate product is priced at 6.40%.
Commenting on the launch, Gable Group Chris Eaton, Co-CEO of Gable Group, said: “We are seeking to support prospective homeowners across the UK for whom rising house prices and deposit requirements have made home ownership more difficult to achieve.
“Changes in the private rented sector, including those associated with the Renters’ Rights Act, together with increases in living costs, utility bills and wider global financial market conditions, can materially impact an individual’s ability to save for a deposit.
He concluded: “Our 100% LTV product range combines fixed-rate certainty, competitive rates and a disciplined underwriting approach, helping eligible, creditworthy customers to access home ownership without the need for a traditional deposit.”
