Gable Mortgages has launched two five-year 5-year deals for the first or next buyers who wish to buy a home.
Mortgage products are aimed at “generational rent” customers who can manage rent but find it difficult to save money due to deposits to buy a home. 
The lender has two products. These include a 5.95% standard 5-year fixed and a 5-year new build is fixed for five years.
Both have a minimum of £125,000 and a maximum loan of £1 million. On the other hand, the maximum loan interest for standard customers is 4.49 times, but for major workers it increases by up to five times, for joint major workers it increases by 5.5 times, and for self-employed people it increases by 4.5 times.
This follows last week's announcement of the mortgage in April regarding the launch of a long-term 100% LTV mortgage.
The April deposit mortgage is available for up to 4.49 times the income on fixed terms of 10 and 15 years.
It does not involve transfer and repayment from the borrower's own funds, or early repayment fees for redemption.
With two lenders launching 100% LTV products from each other within a week, John Charcol Mortgage Manager Nicholas Mendes said:
“A zero deposit mortgage can play a key role for renters who have strong, stable income and a good credit history, but have not been able to save due to high living costs.”
“The fact that Gable's deals are especially linked to the new building houses also supports the government's efforts to encourage symbolism for the sector and stimulate supply.”
“One of the key strengths of this transaction is its five-year fixed interest rate, which ensures buyers are more sure than monthly repayments at a time when interest rate movements remain uncertain.”
“Their stability is extremely valuable for households looking to budget for the long term. Unlike past 100% mortgages, they were often considered dangerous and widely accessible.
“That being said, there are still important considerations. Without stocks, buyers may be more vulnerable to home price movements and may need to stay in real estate longer to build enough stocks to re-rumage or move.”
“With both Gable and April in this space, there is everything else that could potentially continue for other lenders. Intensifying competition could lead to better pricing, more innovation, and wider options for first-time buyers.”
“The demand is clearly there and lenders will compete more aggressively at market entry levels, so we will either offer less or see no deposits in the coming months.”
