Gable Mortgages, a relatively unknown lender, has become the second provider in just a week to introduce a 100% mortgage product, allowing buyers to borrow the full value of a property.
This move follows closely behind April Mortgages, which also launched a similar no-deposit mortgage offer only days earlier.
As outlined on Gable’s official website, these new mortgage options are aimed particularly at ‘generation rent’. These are people who are able to afford their monthly rent – often more than what a comparable mortgage would cost – but find it difficult to save for a deposit.
Gable Mortgages currently offers two distinct products. One is a standard mortgage, while the other is tailored for buyers purchasing new-build homes from a list of partnered developers.
The standard mortgage enables applicants to borrow up to 4.49 times their annual income. However, key workers in specific professions may be eligible to borrow up to 5.5 times their salary, providing a more accessible route onto the property ladder.
Gable Mortgages, a relatively new name in the lending market, has become the second provider within the space of a week to offer homebuyers the option of borrowing 100% of a property’s value. This new product allows buyers to secure a home without needing to save for a deposit – a significant barrier for many aspiring homeowners across the UK.
This move comes shortly after April Mortgages launched a similar 100% mortgage offer, signalling a potential trend among lenders seeking to cater to those struggling with rising living costs and property prices. The introduction of these products marks a shift in the market, with lenders responding to the increasing demand for alternative paths to homeownership.
According to Gable’s website, the lender is particularly targeting ‘generation rent’ – people who are currently renting and can afford their monthly rent payments, which in many cases are higher than what a mortgage repayment would be on a similar property. Despite this financial capability, many renters find it nearly impossible to set aside enough savings for a traditional deposit, especially as house prices continue to climb.
To help bridge this gap, Gable has introduced two mortgage products. The first is a standard 100% mortgage available to a broad range of buyers. The second is specifically designed for purchasers of new-build properties being sold by a list of Gable’s approved ‘partner’ developers. This product is intended to support the supply of new housing while providing more opportunities for first-time buyers.
The standard product allows applicants to borrow up to 4.49 times their annual salary. However, Gable offers a more generous borrowing limit of up to 5.5 times salary for key workers in certain professions. This enhancement recognises the vital contribution of workers in sectors such as education, healthcare, and emergency services, and aims to make homeownership more attainable for them.
These developments reflect growing efforts in the mortgage market to support individuals and families who are otherwise financially stable but unable to overcome the hurdle of a deposit. While 100% mortgages are not without risk – particularly in fluctuating property markets – the introduction of stricter lending criteria and affordability checks helps ensure that borrowers are not overstretching themselves.
As lenders like Gable and April Mortgages take the lead in reintroducing 100% mortgage products, it will be interesting to see how other providers respond and whether this signals a broader shift in lending policies aimed at first-time buyers.
Under Gable Mortgages’ new offering, a person earning £40,000 annually could potentially purchase a home valued at around £179,600 without needing any deposit. For key workers benefiting from the enhanced borrowing limits, this figure could increase to as much as £220,000, making the dream of homeownership more accessible to many who have been priced out of the market.
The interest rate applied to the standard 100% mortgage is set at 5.95%. For those opting for the new-build mortgage, which is tied to properties sold by Gable’s partnered developers, the rate is slightly lower at 5.65%. These fixed rates provide some predictability for buyers at a time when interest rates and inflation continue to influence monthly household budgets.
Justin Le Roux, the Chief Executive Officer of Gable Group, addressed the challenges faced by aspiring homeowners. He pointed out that a significant number of renters are finding it increasingly difficult to balance saving for a deposit while keeping up with ever-rising rental payments. This has become a particularly tough situation for first-time buyers, many of whom are essential workers.
Mr Le Roux explained that Gable’s new mortgage products are designed to address this issue directly. “There is a whole generation of renters out there who are struggling to save to buy and pay their rent at the same time,” he said. “This has made it significantly harder for first-time buyers, especially key workers, to get onto the property ladder.”
He added that Gable’s approach shifts the focus away from the buyer’s savings history and instead looks at their current affordability. “We believe in changing this by offering a solution where the buyer can get a quick decision based on affordability and not – like so many other products on the market – based on what they have managed to save up or borrow from the bank of mum and dad.”
By tailoring their products in this way, Gable Mortgages hopes to open up homeownership to a broader audience, helping more people transition from renting to owning without relying on family support or years of saving.
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