Gable Mortgages has launched a 100% mortgage aimed at first-time buyers, becoming the second lender in less than a week to offer a no-deposit home loan.
The move follows the recent launch of a 100% loan-to-value product by April Mortgages and marks a resurgence of interest in deposit-free lending.
The newly established lender, which was founded in 2024, is offering a range of products through its mortgage platform, which promises lightning-fast DIP approvals.
The zero deposit deal is available on a 5-year fixed rate and is targeted specifically at purchasers of new-build homes, in partnership with developers and brokers.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Gable Mortgages’ new zero deposit five-year fixed deal is a crucial addition to the options available for first-time buyers, particularly those who are finding it increasingly difficult to save for a deposit while contending with record-high rents.
“Coming hot on the heels of April Mortgages’ launch last week, 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.”
Mendes noted that the structure of the product provides some reassurance in a volatile market. “One of the key strengths of this deal is the 5-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.”
However, he also highlighted the need for caution. “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. If prices were to stagnate, this could have a knock-on effect on their ability to progress up the ladder.”
While such products are not expected to solve the UK’s chronic housing shortage, Mendes said they could play an important role. “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.”
With both Gable and April now in the market, more lenders may soon follow suit. “Increased competition could lead to better pricing, more innovation and a wider range of options for first-time buyers,” Mendes added. “While these products will not fix the wider housing crisis, they are a crucial step in opening up access to homeownership for renters who have been locked out for too long.”
