A new wave of zero-deposit mortgages is reshaping the UK housing market, offering a lifeline to first-time buyers and key workers priced out by soaring deposits.
At a Glance
- Gable Mortgages launches two 100% mortgages with rates of 5.95% and 5.65%
- Key workers can borrow up to 5.5× their income; others capped at 4.49×
- No deposit required for properties priced over £125,000
- Eligibility requires applicants to be 23+ and apply via brokers
- Industry experts warn of risks: high rates and negative equity
Homeownership Without the Deposit
Gable Mortgages has launched two 100% mortgage products aimed at helping more UK residents onto the property ladder. With home deposits averaging £60,000—and over £100,000 in London—these offerings are a potential game-changer.
The first mortgage, for standard homes, carries a 5.95% interest rate, while the second targets new builds at 5.65%. Both offer five-year fixed terms. Key workers like NHS staff and teachers are eligible for higher borrowing limits and friendlier affordability terms.
Why Now?
The resurgence of zero-deposit products signals lenders responding to a market in crisis. With rents at record highs, saving for a down payment has become nearly impossible for many. Industry analyst Nicholas Mendes calls Gable’s offer “a crucial addition” for buyers “mortgage-ready in every way except for the deposit.”
This follows similar moves by April Mortgages, which recently released its own 100% mortgage requiring a household income of £24,000 and a property value of at least £75,000.
Caution: Terms Apply
Despite the fanfare, these zero-deposit deals aren’t without drawbacks. Higher interest rates translate to heftier monthly payments, and with no equity buffer, borrowers face heightened risk of going “underwater” if home prices fall.
Applicants must be at least 23 years old, apply through a mortgage broker, and borrow a minimum of £125,000. Lenders will also subject applicants to stricter financial vetting to ensure they can shoulder the risk.
How to Apply Smart
Experts recommend the following steps for those considering Gable’s offer:
- Use a broker – These mortgages are only accessible via intermediaries
- Prepare key documents – Payslips, ID, utility bills, and bank statements
- Check your credit – A strong score can unlock better terms
- Budget for extras – Factor in legal, moving, and survey costs
- Compare deals – Don’t assume one size fits all
Conclusion
Zero-deposit mortgages are making a dramatic comeback in the UK after a 15-year hiatus post-financial crisis. For many, especially key workers and renters squeezed by high living costs, Gable’s new offer may finally unlock homeownership. But with high rates and real risks, applicants should proceed with both optimism and due diligence.
