Gable Mortgages has become the second lender to launch a 100 per cent LTV mortgage in just a matter of days.
The product is designed to support first-time buyers, key workers and primary residents.
This marks the second lender to launch a 100 per cent mortgage in the past week as April Mortgages announced its own similar mortgage on May 16.
Gable Mortgages says it was established to help meet the needs of a generation that has historically been priced out of the housing market.
Chess Mortgages founder, Bob Singh, described the announcement as heralding a “100 per cent mortgage for the masses”.
“This is sure to put a rocket under the property market and I hope Gable Mortgages are able to deal with an influx of business,” he added.
New Leaf Distribution CEO, Daniel Hobbs, was similarly positive, saying: “It’s great to see a lender launching solely in the 100 per cent market and we’re pleased to have been involved in this launch from an early stage.
“With a focus on new build property and an extremely efficient digital journey linking the key parts of the mortgage chain together, Gable could be a real player in the market.
“So far, this new lender is creating a real buzz in the broker community and that should ripple through to borrowers in time.”
But a note of caution was added by Whenthebanksaysno.co.uk managing director, Emma Jones, who said: “This is good news for borrowers but, again, the question needs to be asked: are we at risk of relieving the last financial crisis?
“I know the government is pushing riskier lending but what about mandatory protection policies to go alongside these mortgages to ensure homeowners have protection in place to cover against the unplanned?”
Jones was not the only person to make this connection as The Kushman Group international exporter and property developer, Kundan Bhaduri, counselled similar caution around the launch.
“These 100 per cent mortgages aren’t financial innovation but dangerous historical amnesia,” he said.
“Gable and April Mortgages’ zero-deposit products bear striking resemblance to Northern Rock’s pre-2007 folly that culminated in Britain’s first bank run since 1866 and left millions in negative equity.
“History demonstrates that deposit requirements aren’t arbitrary hurdles but essential financial safeguards.”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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