Gable Mortgages has launched two 0% five-year deposits for the first or next buyer looking to buy a home.
Mortgage products are designed to “generate power” customers who can manage rents but can hardly save money on savings from buying a home.
The lender has two products. This includes a standard five-year fixed rate with a rate of 5.95%, a new five-year fixed rate with a fixed rate of 5.65%.
The minimum loan for both is £125,000 and the maximum loan is £1 million. At the same time, the maximum loan interest rate for standard customers is 4.49 times, but the income of key workers can reach up to 5 times, 5.5 times that of joint major workers, and 4.5 times that of self-employed people.
This follows April Mortgages’ announcement last week about long-term 100% LTV home loans.
April unsecured mortgages can be 4.49 times the income for 10 and 15 years.
It does not have early repayment fees for moving and redeeming or redeeming from the borrower’s own funds early.
“This shows that lenders are starting to deal with the challenges facing aspiring aspiring homeowners who are ready in all aspects except deposits,” said Nicholas Mendes, a mortgage technology manager at John Charcoll.
“Zero deposit mortgages can play a major role for renters with strong, stable income and good credit history but cannot save due to high cost of living.”
“The fact that Gable’s deal is specifically related to new homes also supports the government’s efforts to encourage the department’s takeover and stimulate supply.”
“One of the key advantages of this deal is the five-year fixed interest rate, which allows the buyer to determine its monthly repayment when interest rate changes are uncertain.”
“This stability is very valuable to families trying to budget for a long-term budget. Unlike past 100% mortgages, which are often seen as risky and easy to use, today’s version is more targeted and has a strong affordability check which helps mitigate some of the risks.”
“That is, there are still important considerations. Starting with no equity, buyers are more susceptible to changes in the home price and may need to stay in the property for longer to establish sufficient equity to cash out or relocate.”
“As Gable and April both enter the space, other lenders have the opportunity to follow. The increased competition could lead to better pricing, more innovation and a wider range of options for first-time home buyers.”
“Demand is obviously there, and as lenders compete more aggressively at the entry level of the market, we are likely to see more low or no deposit products in the coming months.”
