Consumer Duty Fair Valuation Assessment Overview

Broker Information Sheet

Residential Mortgage Products v1.1 April 2025

Our approach to meeting the Products & Services Outcome and Price & Value Outcome Information for distributors of the Product.

This summary document is being provided to you to fulfil our responsibilities under PRIN 2A.4.15R and PRIN 2A.3.12 R (2).

It is designed to support you to comply with your responsibilities under PRIN 2A.3.16 R and PRIN 2A.4.16 R. Please note that you are ultimately responsible for meeting your obligations under ‘The Consumer Duty.’

This information is intended for intermediary use only and should not be provided to customers.

1. Summary of our assessment

We have assessed that:

• Our Residential Mortgage products continue to meet the needs, characteristics, and objectives of customers in the identified target market.
• The intended distribution strategy remains appropriate for the target market.
• The product provides fair value to customers in the target market (i.e. the total benefits are proportionate to total costs).

2. Product characteristics & benefits

The Gable Mortgage products are for individuals or joint borrowers who are at least 23 years old at the point of application or 75 years old at the end of their mortgage term. They will either be a current residential property owner or are preparing to purchase their first property.

Our products are designed to suit the needs of a defined set of customers that are likely to have:

• The desire to purchase their own property but do not have a deposit available.
• Sufficient income to cover the costs associated with having a mortgage and will pass our Affordability Assessment.
• A clear credit history with no CCJ’s or missed payments.
• An intention to occupy the property as their primary residence.

Our Products offer access to specialist sales and underwriting teams who understand the needs of the target market.

Our Residential Mortgage products value is derived from product attributes, such as:

• The ability to consider multiple and complex income streams to support affordability.
• The annual overpayment allowance of 10% per annum.
• Clearly defined fee structures for our Product Fees and Legal Fees.
• No additional valuation fees.
• Capital and Interest repayment loans only to enable customers to build equity quickly.
• The ability to choose between our Standard or New Build products.
• Simple and easy to understand Early Repayment Charge (ERC) structures.

Full eligibility criteria can be accessed on our intermediary website via www.gablemortgages.com.

3. Target market assessment and distribution strategy

This target market assessment matrix segments the target customers for our products, recognising their different needs to enable you to tailor the services you provide when you distribute the product.

Customer circumstances

Individual or joint borrowers who are at least 23 years of age at the point of application or 75 years old at the end of the mortgage, who are either a current residential property owner or are preparing to purchase their first residential property. The property will be located in either England or Wales.

They will have a desire to purchase a home, but do not have a deposit readily available.

They will have a clear credit history and will be able to meet our Affordability Assessment.

Distribution strategy

• Available through our intermediary channels only.
• Available through advised sale only.

Customer needs and objectives

• Looking to access a mortgage without the requirement to save for a deposit.
• Wish to fix the term of their mortgage for at least 5 years, hence being sure what their repayments will be for that period and enabling them to budget accordingly.
• Borrowers may not have standardised income validation and want as much of that income to be considered for affordability purposes.

Intermediary distribution through:

• Networks and their Appointed Representatives
• Mortgage clubs
• Directly authorised mortgage intermediaries

All intermediaries must be FCA approved and registered with us and have the appropriate regulatory permissions.

The Product is not designed for customers who:

• Are under the age of 23 at the point of application or over the age of 75 at the end of the mortgage term.
• Have a negative credit history, missed payments or CCJ’s.
• Are purchasing a property to let it out.
• Require an interest only or part and part mortgage.
• Do not meet our lending or property criteria.
• Intend to move property in the foreseeable future and would want to transfer this mortgage to a new property, i.e. the product range is not portable.
• Are looking for a further advance or a transfer of equity on their existing residential mortgages.

4. Customers with characteristics of vulnerability

The Product is designed for residential mortgage customers which is likely to include some customers with characteristics of vulnerability or who will experience vulnerability over time.

Customers with complex incomes are more likely to have less financial resilience than others, including increased potential for variable or erratic income (for example, self-employed or contractors).

Customers with an impaired credit history will not be eligible for our products.

First Time Buyers may also be considered vulnerable owing to them not fully understanding the overall home-buying process, hence why we have fully FCA approved intermediaries who can guide them through the entire process from beginning to end. Also to support these customers, we have a comprehensive first-time buyer guide which is available on our website.

We considered the needs, characteristics, and objectives of customers with characteristics of vulnerability at all stages of the design process for this product range to ensure they meet their needs.

We have also evaluated the product range to assess whether they will meet the identified needs, characteristics, and objectives of the target market, including those who have characteristics of vulnerability.

We have in place a framework to achieve good outcomes for vulnerable customers, which includes:

• Education and training for our staff to ensure they have the appropriate skills and experience to recognise, understand and respond to the needs of vulnerable customers.
• Suitable customer service provision and communications.
• Flexible policies and practices to support vulnerable customers.
• Monitoring to ensure we continue to meet and respond to the needs of customers with characteristics of vulnerability.

Intermediaries should continue to comply with your obligations to ensure that you treat customers in vulnerable circumstances fairly.

Please contact us if you need any further information about how we support the needs of all our customers in relation to the product range.

5. Our assessment of value

We have developed a comprehensive and robust assessment process which evaluates several aspects of our business to determine the value of our mortgage product. This analysis is used to ascertain whether the Product delivers fair value for customers.

The outcomes of the assessment process are presented to the Board, allowing for challenge and further investigation before we sign-off the outcomes and share the summary of our assessment with you. Our fair value assessment has considered the following:

• Benefits – The range of features that our products provide, the quality of the products, the level of customer service that is provided and any other features that the products may offer.
• Price – The interest rates, fees and charges customers pay for the products, comparable market rates, advice fees paid to intermediaries and non-financial costs associated with operating the Products.
• Costs – The costs of funding the Product and any other reductions in costs to the customer made possible by economies of scale.
• Limitations – Any limitations on the scope and service we provide or the features of the Products.

Results of our assessment

Our assessment concluded that our products deliver fair value for customers in the respective target market.