No Deposit Mortgages: How 100% LTV Works –  A deposit is more than money saved.
It is usually the first proof of equity in a home.

Yet for many buyers, the issue is not income.
It is the gap between rent, bills, house prices and savings.

A no deposit mortgage may help eligible buyers buy a home without putting down a traditional deposit. It is also known as a 100% loan-to-value mortgage, or 100% LTV mortgage.

However, 0% deposit does not mean low risk. It also does not mean guaranteed approval. The lender still checks income, spending, credit history, property type and long-term affordability.

This guide explains how no deposit mortgages work, where April Mortgages may fit, what risks to consider, and when another option may be more suitable.

At a Glance

A no deposit mortgage may allow an eligible buyer to borrow up to 100% of the property value.

This can help buyers who can afford mortgage payments but struggle to save a deposit while renting.

The main risk is negative equity. This can happen if the property value falls below the mortgage balance.

April Mortgages offers a no deposit mortgage for eligible buyers. Its published criteria include 0% deposit, 10 or 15-year fixed rate options, minimum household income rules, property type rules and full affordability checks.

A no deposit mortgage should be reviewed with advice. The right question is not only “Can I buy now?” It is also “Can I stay secure later?”

What Is a No Deposit Mortgage?

A no deposit mortgage is a mortgage where the buyer may borrow the full purchase price of the property.

For example, if the property costs £250,000, a 100% LTV mortgage could allow borrowing of £250,000, subject to lender criteria and affordability checks.

Most buyers usually need a deposit. This could be 5%, 10% or more. A no deposit mortgage removes that initial deposit requirement, but it does not remove the need for responsible lending.

You may still need money for other costs, such as:

• Legal fees
• Valuation fees
• Moving costs
• Survey costs
• Insurance
• Stamp Duty Land Tax, where it applies

You can use the Stamp Duty Calculator to help understand one possible buying cost.

How 100% LTV Mortgages Work

Loan-to-value, or LTV, compares the mortgage amount with the property value.

A 90% LTV mortgage means the buyer usually has a 10% deposit. A 95% LTV mortgage usually means a 5% deposit. A 100% LTV mortgage means the mortgage may cover the full property value.

This matters because the lender starts with no deposit buffer. As a result, lenders usually apply stricter checks.

They may review:

• Household income
• Employment stability
• Existing credit commitments
• Credit history
• Monthly spending
• Property type
• Property value
• Expected affordability over time
• Whether the mortgage still makes sense if circumstances change

The mortgage is not judged only on today’s payment. It is judged on whether the borrowing is sustainable.

April Mortgages and No Deposit Mortgages

April Mortgages is referenced in the original piece because it offers a no deposit mortgage for eligible borrowers.

The product is designed for buyers who may have a stable income and a strong credit profile but have not been able to save a traditional deposit.

April’s published no deposit mortgage features include:

• 0% deposit
• Up to 100% loan-to-value
• Fixed rate options for 10 or 15 years
• Automatic rate reductions as the mortgage balance reduces
• Unlimited overpayments
• No early repayment charges when moving home or repaying with your own funds
• Available for home purchases only

The longer fixed rate structure is important. It may give payment certainty over a longer period. It may also reduce the need to remortgage quickly after buying with no initial equity.

However, a long fixed rate is not right for everyone. Buyers should understand how the product works if they move, repay, overpay, or want to review their mortgage later.

You can read more about April Mortgages and how the product may fit different borrower needs.

April Mortgages No Deposit Criteria

Based on April Mortgages’ published information, applicants may need to meet key criteria.

These include:

• UK resident applicants
• Minimum household income of £24,000
• Good credit history
• Main residence purchase
• House valued at more than £75,000
• Full affordability and underwriting checks

April states that flats and new build properties are not accepted for this no deposit product.

This is important. A buyer may like the product, but the property must also meet the lender’s rules.

Criteria can change. Therefore, buyers should always check current details with a qualified mortgage adviser before making a decision.

Why the Technical Details Matter

A no deposit mortgage is not simply a shortcut to buying.

It changes the starting position. With a deposit, the buyer begins with some equity. Without a deposit, the buyer starts at or near full borrowing against the property.

That can affect:

• Remortgage options
• Future moving plans
• Exposure to falling property values
• Long-term interest cost
• Product suitability
• Lender choice

The product may be helpful, but only where the full position is understood.

A mortgage is not only about getting the keys. It is also about keeping control after completion.

The Main Risk: Negative Equity

Negative equity occurs when the mortgage balance exceeds the property’s value.

For example, if you buy a home for £250,000 with a 100% mortgage, and the value falls to £240,000, you may owe more than the home is worth.

This can make it harder to:

• Sell the property
• Move home
• Remortgage to another lender
• Raise further borrowing
• Manage changes in personal circumstances

Negative equity is not guaranteed. Property values can rise as well as fall. However, the risk is higher when the buyer starts with no deposit.

This is why advice is important.

Who Might a No Deposit Mortgage Suit?

A no deposit mortgage may suit some buyers who have income strength but limited savings.

This could include:

• First-time buyers paying high rent
• Buyers with stable employment
• Applicants with a strong credit profile
• Households with clear affordability
• Buyers planning to stay in the property for longer
• Customers buying a suitable main residence house

It may not suit buyers who expect to move quickly. It may also not suit buyers who need a flat, a new build property, or a short-term mortgage plan.

If you are buying your first home, our First Time Buyer Mortgages page may also help.

No Deposit Does Not Mean No Costs

A common mistake is to think 0% deposit means no money is needed.

That is not usually the case.

You may still need funds for legal work, moving costs, surveys, insurance and other purchase costs. Stamp Duty may also apply, depending on the purchase price and your buyer status.

You should also consider your emergency savings after completion. Buying with no deposit can leave less spare money for repairs, bills or unexpected costs.

The mortgage may get you into the property. Your budget must help you stay there.

No Deposit Mortgage vs Low Deposit Mortgage

A no deposit mortgage is not the only route.

Some buyers may be better served by a low deposit mortgage if they can save a smaller amount.

Possible alternatives include:

• 95% LTV mortgages
• 90% LTV mortgages
• Family-assisted mortgages
• Gifted deposit options
• Joint borrower arrangements
• Shared ownership, where suitable
• Waiting longer to build a stronger deposit

A larger deposit can sometimes improve lender choice and reduce borrowing risk. It may also help access a wider range of mortgage rates.

The right option depends on income, property plans, credit history, savings and how long you expect to stay in the home.

Affordability: The Question Behind the Product

No deposit mortgages often attract attention because the deposit barrier is visible.

However, affordability is the deeper question.

A lender will assess whether the mortgage looks affordable based on your income, committed spending, credit profile and wider financial picture.

An adviser can help compare the mortgage payment with your current rent, future costs and other homeownership expenses.

You can also use the Residential Affordability Calculator to get a broad starting point.

The calculator does not replace advice. It can help you prepare before speaking to an adviser.

Why Mortgage Advice Matters

A no deposit mortgage should be reviewed carefully.

A qualified mortgage adviser can help explain:

• Whether you may meet lender criteria
• Whether the property type fits the lender’s rules
• How the fixed rate period works
• What overpayments may mean
• What happens if you move home
• The risk of negative equity
• Whether another mortgage may suit you better

This matters because no deposit lending is not only about access. It is also about suitability.

The best mortgage is not always the one that lets you buy soonest. It is the one that fits your life beyond completion.

April Mortgages Through Connect Mortgages

Connect Mortgages can review whether an April Mortgages no deposit product may be suitable for your circumstances.

If it is not suitable, we can consider other residential mortgage options from a wider range of lenders.

This gives the advice process a wider purpose. The aim is not to force one product into every case. The aim is to understand the buyer, the property and the risk.

For another product-focused overview, you can also read the Connect Experts guide to the April No Deposit Mortgage.

Is a No Deposit Mortgage Right for You?

A no deposit mortgage may be worth exploring if you have stable income, a good credit profile and limited savings.

It may help you buy sooner. It may also give longer-term payment certainty where the product structure fits your plans.

However, it should be approached with care.

Before applying, ask yourself:

• Can I afford the monthly payment?
• Do I understand the fixed rate period?
• Do I have money for buying costs?
• Could I cope if property values fell?
• How long do I expect to stay in the home?
• Does the property meet lender criteria?
• Would a low deposit mortgage be safer?

These questions are not barriers. They are safeguards.

Speak to Connect Mortgages

If you want to know whether a no deposit mortgage could work for you, speak to Connect Mortgages.

We can review your income, property plans, credit position and deposit situation. We can also explain whether April Mortgages or another lender may be suitable.

No deposit mortgages can open a door. Good advice helps you decide whether it is the right one to walk through.

FAQs: No Deposit Mortgages

What is a no deposit mortgage?

A no deposit mortgage is a mortgage that may allow you to borrow up to 100% of the property value. It is also called a 100% LTV mortgage.

Can I get a mortgage with no deposit?

You may be able to get a mortgage with no deposit if you meet lender criteria. This usually includes affordability, income, credit history and property checks.

Does April Mortgages offer a no deposit mortgage?

Yes. April Mortgages offers a no deposit mortgage for eligible borrowers. The product has specific criteria and is subject to full underwriting.

What deposit do I need for an April no deposit mortgage?

April’s no deposit mortgage is designed with 0% deposit. However, you may still need money for legal fees, moving costs, insurance and other buying costs.

What income do I need for April Mortgages?

April states that its no deposit mortgage requires a minimum household income of £24,000, subject to criteria and affordability checks.

Can I buy a flat with April’s no deposit mortgage?

April states that flats are not accepted for its no deposit mortgage. The product is for eligible main residence house purchases.

Are new build properties accepted?

April states that new build properties are not accepted for this no deposit product.

What is the biggest risk of a no deposit mortgage?

The biggest risk is negative equity. This can happen if property values fall and your mortgage becomes higher than the value of your home.

Is a 100% mortgage suitable for first-time buyers?

It may suit some first-time buyers with stable income, good credit and a suitable property. However, it needs careful advice.

Should I save a deposit instead?

Saving a deposit may give you more lender choice and reduce risk. However, this depends on your circumstances, income, rent, savings and property plans.