Introducing a New 100% Mortgage for Buyers Without a Down Payment – TNT

A new 100% loan-to-value (LTV) mortgage for buyers with no deposit has been launched. 

The product, which is likely to prove highly popular with purchasers struggling to raise a significant deposit, has been launched by April Mortgages and is available on 10- and 15-year fixed terms. 

Targeted at buyers with reliable incomes and good credit histories but no access to the widely used ‘Bank of Mum and Dad’, loans are available up to 4.49x income with no early repayment charges for moving and redeeming or redeeming from own funds. 

Designed to provide both certainty and flexibility in an increasingly unaffordable market, borrowers benefit from uncapped overpayments and an automatic rate reduction as equity builds.

James Pagan, director of Product at April Mortgages, said: “Saving for a deposit remains one of the biggest barriers to home ownership, even for those with strong incomes and a solid credit profile. We believe the answer lies not in loosening standards, but in designing products that better reflect the realities of today’s housing market.

“Our new No Deposit Mortgage brings together full credit, and affordability checks with the longer-term certainty of a 10 or 15-year fixed rate. It’s a responsible option for borrowers with strong financial track records who are excluded by traditional deposit requirements.

“By removing the need for upfront savings and providing payment security over the long term, we’re giving brokers a new way to support underserved buyers. We’ve worked closely within the product design to ensure this is a sustainable product, built for the realities of the modern market.”

Rachael Hunnisett, director of mortgage distribution at April Mortgages, added: “The housing market has shifted dramatically. Wage growth struggles to compete with rising house prices, owning a home has become harder to achieve — even for those with steady incomes. But having a place to call your own still brings security, stability, and the freedom to build a life — and that shouldn’t feel out of reach.

“At April, we’re committed to making mortgages simpler, more flexible, and better suited to the way people live today. That’s why we’ve added a real borrowing bounce to our modern mortgage products: from increased affordability with AffordAbility+ to the flexibility of Interest Only+. Combined with our thorough affordability checks and the long-term certainty of a 10 or 15-year fixed rate, we’re helping people not just get on the property ladder but stay on it with confidence.”

Reflecting on April Mortgages’ new 100% LTV mortgage product, Nick Mendes, mortgage technical manager at John Charcol, stated: “April Mortgages’ No Deposit Mortgage arrives at a crucial time for the market. With house prices still near record highs and rental costs continuing to climb, saving for a deposit is an insurmountable challenge for many would-be buyers, particularly those without access to financial support from family.

“This product offers a much-needed alternative for financially responsible renters who have consistently managed their payments but have been locked out of the housing market. The ability to borrow up to 100 per cent with a longer-term fixed rate provides both accessibility and stability, two things first-time buyers urgently need.

“What really stands out is the flexibility built into the product. Removing early repayment charges when moving home or making overpayments gives borrowers freedom and control, which is often missing from traditional longer-term fixes. It is a smart, well-structured product that addresses today’s affordability challenges head-on and will undoubtedly help more people take that first step onto the property ladder with confidence.”

Kate Fuller, Business Principle, Mortgage Advice Bureau, stated: “We are really excited by April Mortgage’s 100% mortgage. We know this will be so helpful to people who are currently only dreaming of owning a house, and have no way to save for a deposit, or access to family support. This will really give these customers a way forward. We haven’t seen 100% mortgages like this since 2008, so to see them finally return really shows how much positivity there is in the property market right now and we just want to thank April for this innovative product!”

David Hollingworth, associate director at L&C Mortgages, remarked: “Not only are house prices high but rent and the cost of living have increased substantially in recent years.  First time buyers, in particular, must therefore battle with the difficulty of building an adequate deposit and all too often will rely on help from parents.

“That help isn’t available to everyone, so solutions for those with little or no deposit but solid affordability, could bring renewed hope and accelerate the chance to buy. 

“April’s long term fixed deals will give rate stability to buyers, whilst still enabling the rate to drop as they make inroads into the mortgage.  The lack of tie ins if there’s a later house move or chance to overpay, also gives important flexibility.”