Little-known Gable Mortgages has become the second lender in a week to offer homebuyers an opportunity to borrow 100% of the property’s value.
It follows April Mortgages’ launch of a similar 100% product last week.
According to Gable’s website, its products are aimed at ‘generation rent’ who can manage to pay their rent – which may be higher than a mortgage on a similar property – but struggle to save a deposit.
The lender has two products available -a standard mortgage, and one that is specific to new-build buyers acquiring a property from a list of ‘partner’ developers.
Gable’s standard mortgage allows borrowing of 4.49 times the buyer’s salary. This increases to 5.5% for key workers in certain professions.
It means someone earning £40,000 a year could hypothetically buy a home worth £179,600 without any savings – and if they were a key worker, that could rise to £220,000.
The rate on the standard mortgage is 5.95%, and on the new-build mortgage is 5.65%.
Justin Le Roux, chief executive of Gable Group, said: “There is a whole generation of renters out there who are struggling to save to buy and pay their rent at the same time.
“This has made it significantly harder for first time buyers, especially key workers get onto the property ladder.
“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.”
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