The product will be available exclusively through Legal & General (L&G) Mortgage Club advisers and is designed to help borrowers buy a home without a deposit.
The 100% LTV product is a five-year fix with a rate of 5.99% and £199 application fee, as well as £199 cashback on completion.
It will be initially available to borrowers buying in the East Midlands, with plans for wider distribution later this year.
The mutual said this was in response to the growing challenges faced by first-time buyers, especially younger people and those renting long term.
Simon Taylor, CEO of Melton Building Society, said: “For over 150 years, we have been committed to helping our members buy their own home, and it’s well-documented that in recent times, taking the first step into homeownership has become increasingly difficult for buyers.
“As a modern mutual building society, it’s important that we look for ways to innovate and offer solutions to overcome the barriers that exist to homeownership. That’s why we’ve carefully designed a product, that in partnership with Gable Sure, gives borrowers a fair opportunity to own their own home, whilst lending responsibly.”
Laura Burrows of Melton Mortgage Solutions, a L&G Club brokerage, added that the product could be a “genuine game-changer” for buyers struggling to get on the property ladder.
She added: “By removing the barrier of a large deposit, it opens up homeownership to the many creditworthy applicants who might otherwise be stuck renting for years. With responsible underwriting and clear criteria, this kind of product can help motivated buyers achieve their goals sooner while maintaining financial stability.”
Greg Cunnington, head of strategic accounts at L&G, said: “It is great to partner with Melton on this exclusive, that offers more options to our intermediary partners and importantly the end customer. The role of regional building societies in the mortgage market is one of huge importance in supporting more flexible customer requirements, so we are delighted to work closely with Melton Building Society here.”
Last year, Gable Sure announced the launch of its 100% LTV offering around the same time that April Mortgages released a similar no-deposit proposition.
