The mortgage product is aimed at ‘Generation Rent’ customers who can manage their rent but find it hard to save for a deposit to buy a home.

The lender has two products available. These include a standard five-year fixed that has a rate of 5.95% and a new build five-year fixed with a rate of 5.65%

Both have a minimum loan of £125,000 and a maximum loan of £1m. Meanwhile, the maximum loan-to-income rate for standard customers is 4.49 times income but rises up to 5 times for key workers, 5.5 times for joint key workers and 4.5 times for self-employed.

This follows April Mortgages’ announcement last week on the launch of a long-term 100% LTV home loan.

April’s No Deposit Mortgage is available at up to 4.49 times income on 10- and 15-year fixed terms.

It comes with no early repayment charges for moving and redeeming or redeeming from the borrower’s own funds.

With two lenders launching 100% LTV products within a week of each other, John Charcol mortgage technical manager Nicholas Mendes says: “It shows lenders are starting to respond to the challenges faced by aspiring homeowners who are mortgage-ready in every way except for the deposit.”

“Zero deposit mortgages can play an important role for renters who have strong, stable incomes and good credit histories, but have been unable to save due to the high cost of living.”

“The fact that Gable’s deal is linked specifically to new-build homes also supports government efforts to encourage take-up in that sector and stimulate supply.”

“One of the key strengths of this deal is the five-year fixed rate, which gives buyers certainty over their monthly repayments at a time when interest rate movements remain uncertain.”

“That stability is hugely valuable for households trying to budget long term. Unlike the 100 per cent mortgages of the past, which were often seen as risky and too widely accessible, today’s versions are far more targeted and subject to robust affordability checks, which helps mitigate some of the risk.”

“That said, there are still important considerations. Starting with no equity means buyers are more vulnerable to house price movements and may need to stay in the property for longer in order to build up enough equity to remortgage or move.”

“With both Gable and April now entering this space, there is every chance that other lenders will follow. Increased competition could lead to better pricing, more innovation and a wider range of options for first-time buyers.”

“The demand is clearly there, and as lenders compete more aggressively at the entry level of the market, it is likely we will see more low or no deposit offerings appear in the months ahead.”