A NEW 100 per cent mortgage deal could be a “game-changer” for those looking to buy a home, a leading property expert has said.
April Mortgages has just launched a new 100% mortgage deal which lets you buy a home without needing a deposit.
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.
Commenting on the new offer Sam Fox, the founder of the UK Mortgage Centre said: “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.
“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.”
Outlining why this deal differs from similar products released in the past, Sam added: “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.”
What is a 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.

What are the key benefits?

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?
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 Points Should I Keep In Mind?
While the idea of a 100% mortgage is exciting, there are a few things to consider.
The first issue is higher rates. The starting interest rate is higher than you’d get with a deposit, reflecting the added risk to the lender.
Negative equity is another issue to keep in mind. 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).
Finally 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.