Saving for a house deposit isn’t easy, especially in today’s climate. With rising rents, higher living costs and stagnant wages, many would-be buyers feel stuck in a cycle of renting with no clear route onto the property ladder.
But April Mortgages has launched a new 100% mortgage that could change that.
If you’re in a stable job, paying your rent on time each month, but can’t quite scrape together a deposit, this product might be exactly what you’ve been waiting for.
What Is April Mortgages’ 100% Mortgage?
Put simply, it’s a mortgage that lets you buy a home without needing a deposit.
Instead of saving up 5–10% of the purchase price upfront, you can borrow the full value of the property. It’s designed for first-time buyers and home movers who can afford the monthly repayments but haven’t had the chance to build up savings.
It’s not a guarantor mortgage either, so no need to rope in parents or family members.
Key Features
- No deposit needed – You can borrow 100% of the property price.
- Fixed for the long haul – Choose from a 10 or 15-year fixed rate, with rates starting at 5.99%.
- No early repayment charges – Pay off more whenever you like, or clear the mortgage early, with no penalties.
- Rate drops as you go – As your loan-to-value improves, your rate automatically gets better.
- Stretch your borrowing – You could borrow up to 4.49 times your income – or even more (up to 6 or 7 times) if you meet certain criteria.
Who Can Apply For A 100% Mortgage
This isn’t a one-size-fits-all mortgage – but it’s open to a good number of buyers.
To be eligible, you’ll usually need to:
- Have a household income of at least £24,000
- Be buying a home worth over £75,000
- Be purchasing in England or Wales
- Have a clean credit history
- Show that you can comfortably afford the monthly repayments
What Makes This Mortgage Stand Out?
Unlike some previous no-deposit products, there’s no need for a guarantor or family member to put up cash. It’s a standalone mortgage based on your income and creditworthiness.
What’s more, the interest rate reduces automatically as you pay down your mortgage – which is quite rare. And with no early repayment charges, you’ve got the flexibility to overpay or switch if your circumstances change later on.
Things to Keep in Mind
While the idea of a 100% mortgage is exciting, there are a few things to consider:
Higher rates – The starting interest rate is higher than you’d get with a deposit, reflecting the added risk to the lender.
Negative equity – If house prices fall and you’ve borrowed the full value of your home, you could end up owing more than it’s worth (though this risk reduces over time as you repay the loan).
Long-term commitment – A 10 or 15-year fixed rate offers security, but it’s a long time to be tied into one deal – even without early repayment fees.
Is It Right for You?
If you’re renting, have a reliable income and a clean credit history, but just can’t get a deposit together, this mortgage could be a game-changer.
It won’t be for everyone – but for the right buyer, it’s a big step towards owning your own home.
Expert first-time buyer mortgage advice
As a first-time buyer with many options including a first-time buyer 0 deposit mortgage, it can be difficult knowing which mortgage is right for you.
Between ever-changing government schemes, interest rates, and mortgage arrangements, navigating the confusing world of mortgages isn’t always easy.
Luckily, the team of mortgage experts here at UKMC is on hand to make your road to home ownership a smooth one. Our honest and authentic approach to mortgages means we’ll help you to secure the best mortgage for you, explaining any pros and cons of this arrangement in the process.
Instead of baffling you with mortgage jargon, our down-to-earth team will explain the complete house purchasing process in easy-to-understand terms. Whether you’re concerned about the size of your deposit or feeling overwhelmed by your lender options, we can help.
To learn more about the first-time buyer services available at our family-run business and how we can help you get the keys to your very first home, feel free to book your appointment with one of the experienced mortgage advisors at UKMC today.
If you’d like to discuss your first-time buyer mortgage requirements with a member of our team before booking your appointment, simply request a call back at a more convenient time. For those who prefer to have a face-to-face conversation and live in the Cheshire area, we welcome visits to our Warrington Office.
Disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
