Gable Group has secured a long-term institutional funding line to support the launch of high loan-to-value mortgages for first-time buyers.
The fintech and insurance group is targeting up to £250m of deployment over the next 12 months through an FCA-regulated lending partner, with plans to scale the proposition further in subsequent years.
Products will be available at up to 100% LTV without requiring borrowers to provide a cash deposit, guarantor or alternative collateral.
They will be distributed through mortgage intermediaries and selected housebuilder partnerships to creditworthy first-time buyers purchasing homes in England and Wales.
INSURANCE SUPPORTS HIGH-LTV LENDING
The mortgages will be underpinned by insurance from Gable Sure, Gable Group’s insurance subsidiary.
The structure is designed to give regulated lending partners additional protection while removing the deposit requirement that prevents many renters from accessing homeownership.
Gable says the products primarily target an £82bn first-time buyer market and has secured its funding line from an established European bank, which has not been named.
Research cited by the group indicates that just 8% of people aged between 25 and 34 can afford a 10% deposit.
Halifax data puts the average first-time buyer deposit at £61,090 in 2024, equivalent to 20% of the purchase price and 14% higher than a year earlier.
DEPOSIT BARRIER COMES UNDER ATTACK
Joshua Weinstein (main picture, inset left), Founder and CO-CEO of Gable Group, says: “Millions of UK renters are not locked out of homeownership because they cannot afford a mortgage.
“ They are locked out by unaffordable deposit requirements.
“No-and-low-deposit mortgages have an essential role to play in today’s modern, well-regulated market, whilst also supporting the government’s new-build home target.
“Securing the long-term backing of a major European bank is a strong endorsement of the platform and products we have built and the growth prospects for this part of the funding stack.”
INTERMEDIARIES AND BUILDERS JOIN DISTRIBUTION
Chris Eaton (mainm picture, inset, right), CO-CEO of Gable Group, adds: “Our platform allows our partners to deliver a rigorous, technology-led underwriting process with long-term institutional funding, within an FCA-regulated framework, to enable hard-working, aspirational professionals across the UK to achieve their homeownership dreams.”
