No-deposit option aims to help first-time buyers struggling to save a lump sum
April Mortgages has launched a no-deposit mortgage aimed at helping creditworthy borrowers overcome the rising costs of entering the housing market, offering full loan-to-value borrowing on long-term fixed rates.
The new deal allows applicants to borrow up to 100% of a property’s value, with rates fixed for 10 or 15 years. The lender is targeting buyers with steady incomes and strong credit profiles who do not have access to family financial support.
Borrowers can access up to 4.49 times their income, with interest rates starting from 5.99%. There are no early repayment charges when moving or settling the loan using personal funds. Unlimited overpayments are permitted, and rates automatically fall as the borrower builds equity and moves into lower loan-to-value bands.
The launch comes at a time when saving for a deposit remains a key obstacle for many would-be homeowners. Halifax figures show the average deposit in the UK now exceeds £60,000 — rising to more than £100,000 in London. First-time buyer mortgage completions dropped to 287,060 in 2023, the lowest level in a decade and down significantly from 405,250 in 2021.
April Mortgages said its new offering aims to meet the needs of buyers who can afford monthly repayments but struggle to save a lump sum, particularly amid rising house prices and private rent costs.
“Saving for a deposit remains one of the biggest barriers to home ownership, even for those with strong incomes and a solid credit profile,” said James Pagan (pictured left), director of product at April Mortgages. “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.”
The announcement follows a recent move by the lender to expand its loan-to-income (LTI) limits. Under the revised criteria, eligible applicants can now borrow up to seven times their income on selected 10- and 15-year fixed rate products.
“The housing market has shifted dramatically,” said Rachael Hunnisett (pictured right), director of mortgage distribution at April Mortgages. “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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
