100% Mortgage Scheme – 0 Deposit, No Problem: April Mortgages Launches Scheme to Help First-Time Buyers
Could this be the lifeline renters have been waiting for? Let’s break it down.
🏠 The Return of the 100% Mortgage — But With a Modern Twist
The modern day struggles for many aspiring homeowner you’re renting, paying out a small fortune each month, and trying (and failing) to save for a deposit. It’s like trying to fill a bathtub with the plug out. Enter: April Mortgages, who’ve just launched a bold new scheme — a 100% mortgage, aka a no-deposit mortgage. And no, it’s not a zombie from 2008 dragging Northern Rock back from the dead. This is very much a 2025 version: smarter, safer, and arguably overdue.
So, what’s the catch with 100% mortgages? Let’s get into the details — because if you’ve been priced out of the housing market thanks to eye-watering deposits, this might just be the news you’ve been waiting for.
💡 What Is April’s 100% Mortgage All About?
At its core, this 100% mortgage is designed for people with a steady income and clean credit history, but without the luxury of a £30k+ lump sum sitting in a savings account. Think teachers, nurses, or just about anyone not on the Bank of Mum and Dad payroll.
Here’s what makes this product shine:
✅ Key Features:
100% Mortgage: Buy with zero deposit.
Fixed Rates: Choose between 10- or 15-year fixed terms, with starting rates from 5.99%. (correct as of 16th May)
No Early Repayment Fees: Move or repay early with your own funds? No problem. But if you are looking to remortgage elsewhere you will incur these early repayment charges still.
Overpay Anytime: Got a bonus? Overpay without penalty.
Your Rate Drops As You Repay: The more equity you gain, the better your rate can get.
Broker-only Product: So you’ll need a mortgage broker (which is probably wise anyway).
📋 Who Can Apply?
Before you start house-hunting, let’s make sure you qualify for the 100% mortgage. This mortgage isn’t for everyone, but it does cater to a fair slice of the population.
You’ll need:
🇬🇧 UK Residency
💷 Household income of £24,000 or more
📊 Clean credit history
🏡 A property valued at £75k or more — no new builds or flats
👵 To be under 70 years old (and under 80 by the end of the mortgage term)
Loan amounts range from £50,000 to £600,000, so this is more than just a starter home solution.
🧮 Why This Matters: The Deposit Dilemma
Let’s face it — the average first-time buyer deposit in the UK is now over £68,154, and in London, you’re looking at over £151,731 *. That’s not spare change down the back of the sofa. For most people, it’s the biggest barrier to buying a home. You could have a stellar job, pay rent like clockwork, and still be stuck in the rental cycle.
April’s 100% mortgage attempts to address exactly that. It’s not about making homeownership easy — it’s about making it possible.
🔍 How It Compares
This isn’t the first time we’ve seen a 100% mortgages in the UK. A few lenders have dipped their toes into the 100% mortgage pool before, but many are tied to family support (like a parent putting up savings as collateral), require you to have rented for over 12 months or limited to the the Right to Buy/Shared Ownership schemes.
April’s approach is refreshingly different:
No guarantors
No linked savings accounts
Just your income, your credit score, your home
In other words, you don’t need to rope in your nan’s pension or borrow Uncle Dave’s ISA to make this work.
🌟 Perks That Set It Apart
Here’s where it gets juicy:
🔒 Long-term fixed rate: Your payments stay the same for a full decade (or 15 years if you choose), giving you security and predictability.
💸 Rate drops as you pay: As your loan-to-value (LTV) goes down, you unlock better rates automatically.
💥 No fees for moving: Planning to move in five years? You won’t be penalised.
🎉 Unlimited overpayments: Pay off faster if life gives you a financial win.
Despite the long term fixed it gives many people that initial foot on the ladder but great flexibility as they build equity to make that next move.
⚠️ What’s the Catch?
We’re not here to sugarcoat the zero deposit mortgage. This type of mortgage has real risks, and it’s not a “one-size-fits-all” solution.
Here’s what to consider:
📉 Negative Equity: If house prices drop, you could owe more than your home is worth — particularly in the early years.
💸 Higher repayments: No deposit means you’re borrowing more, so expect larger monthly bills.
🔐 Fixed for 10-15 years: That’s a long time to commit to one deal — especially if rates drop in future.
- 💷 Early repayment charges for refinancing: Although there are no fees if move, or pay off the mortgage with your own funds this flexibility doesn’t extend to if you want to remortgage to a new lender while you are in your fixed deal meaning you won’t be able to chop and change lenders should a cheaper deal be available elsewhere without incurring fees.
April has tried to reduce some of the pain points (like early repayment charges), but it’s still essential to get proper advice before diving in.
🗣️ What the Experts Are Saying
Industry insiders have praised April Mortgages’ innovative and buyer-friendly approach. James Pagan, Director of Product at April Mortgages, put it best:
“Saving for a deposit remains one of the biggest barriers to homeownership, 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.”**
👀 So, Should You Apply?
If you’ve been:
Renting for years
Struggling to save while managing high living costs
Earning a steady income but feel stuck on the sidelines…
Then yes, this could be a genuine game-changer. It’s not magic, and it doesn’t wave away the responsibilities of homeownership. But it does finally offer a realistic route to buying for a generation that’s largely been locked out.
🧭 Final Thoughts: Hope for Generation Rent?
In a market where house prices have surged and wages haven’t quite kept pace, schemes like April Mortgages’ 100% LTV product are more than welcome — they’re necessary. By ditching the deposit and offering flexibility, it puts the dream of homeownership back on the table for thousands.
Of course, it’s still a mortgage — a big commitment with real financial responsibility. But with the right advice and some smart planning, this could be the step up that many have been waiting for.
So maybe, just maybe… it’s time to start browsing Rightmove with a little less dread and a little more hope.
Ready to learn more? Speak to a mortgage broker or visit April Mortgages for all the details.
*Source: Unbiased 11th February 2025 taken form research from UK Finance.
**Source: Mortgage Strategy 16th May 2025
