God. I nearly spat out my coffee when I saw this news hit my inbox yesterday. Another lender jumping into the no-deposit mortgage pool? After years of watching friends struggle to save £60K while paying astronomical rent, this feels like the market is finally waking up to reality.
Gable Mortgages has just launched their first zero-deposit mortgage products, hot on the heels of April Mortgages who did the same thing last week. Is this the beginning of a beautiful trend? My editor thinks so - she's already texting me about how she wishes this had existed back in 2019 when she was living on pasta and refusing to turn the heating on just to scrape together a deposit.
What's the actual deal here?
So here's what Gable is offering: a standard five-year fixed-rate mortgage at 5.95% and a new-build version at 5.65% - both requiring exactly £0 in deposit. Zero. Zilch. Nada.
They're specifically targeting first-time buyers, key workers, and primary residents. And unlike some lenders who make big promises but then strangle you with restrictions, Gable's standard mortgage lets borrowers secure up to 4.49 times their annual salary.
Key workers get an even better deal. If you're in one of teh qualifying professions, you can borrow up to 5.5 times your salary. That's huge!
Show me the money (or lack thereof)
Let's break this down with some real numbers. Someone earning £40,000 a year could potentially buy a home worth £179,600 without having saved a single penny. And if they happen to be a key worker? That jumps to £220,000.
I remember back in 2017 when I was desperately trying to buy my first flat in Manchester. The amount of overtime I worked just to save that deposit... I feel stupid now thinking about how many weekends I gave up when products like this might have been on the horizon.
The fine print (because there's always a catch)
Before you rush off to call Gable, there are some requirements. You need to be at least 23 years old, borrow a minimum of £125,000, and apply through a mortgage broker. No direct applications here, folks.
Justin Le Roux, Gable Group's chief executive, says: "This is a significant milestone for Gable Mortgages as we launch our first two products into the UK. We understand how hard it is for first-time buyers to get onto the property ladder, which is why we have created our zero-deposit mortgage solutions."
Well, thanks for noticing, Justin.
But wait... how does April's offer compare?
April Mortgages launched their zero-deposit option just last week with slightly different terms. They require a minimum household income of £24,000 and a property value over £75,000. Borrowers can get up to 4.49 times their annual income with either 10 or 15-year fixed terms.
The big advantage with April? No early repayment charges. (I had a friend get absolutely hammered with those back in 2018 when she had to relocate unexpectedly for work. Poor Sarah.)
The downside? April doesn't offer those special perks for key workers that Gable does.
Is this the beginning of something beautiful?
Nicholas Mendes from John Charcol called Gable's new product "a crucial addition" for first-time buyers. He pointed out that it's especially important for those struggling to save while paying record-high rents.
Listen. The average deposit in the UK is now over £60,000. In London? Try £100,000. Who has that kind of money sitting around while paying £1,500+ in monthly rent?
Before the 2008 crash, 100% mortgages were everywhere. Then they vanished faster than my motivation on Monday mornings. Now they're creeping back.
I texted my mortgage broker friend about this trend yesterday. His response: "About damn time. Expecting three more lenders to launch similar products by autumn." Interesting...
The competition is heating up
Nick from John Charcol thinks increased competition could lead to better pricing and more innovation. Accord is already offering mortgages with just a £5,000 deposit.
I've been covering the housing market for nearly 7 years now, and this feels different. Like we're witnessing a genuine shift in how lenders view first-time buyers.
Will it be enough? Probably not for everyone. But for those earning decent salaries who just can't save fast enough while renting... this could be life-changing.
And honestly, after the housing nightmare of the past decade, we'll take any good news we can get.
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