Can First-Time Buyers Get a No Deposit Mortgage? For many first-time buyers, the deposit is the hardest part of buying a home. The monthly mortgage payment may look possible. The income may be stable. The rent may already be close to a mortgage payment. Yet the deposit can still feel like a locked door.
A no deposit mortgage changes that starting point.
Instead of saving 5% or 10% of the property price, an eligible buyer may be able to borrow up to 100% of the property value. This is also called a 100% loan-to-value (LTV) mortgage.
However, no deposit does not mean no checks. It does not mean no risk. It also does not mean the mortgage is right for every first-time buyer.
The real question is not only whether you can buy without a deposit. It is whether the mortgage, property, income and future plans all work together.
No Deposit Mortgage for First-Time Buyers at a Glance
Yes, some first-time buyers may be able to get a mortgage with no deposit.
A no deposit mortgage may allow an eligible buyer to borrow the full property price, subject to lender criteria, affordability and credit checks.
April Mortgages offers a no-deposit mortgage for eligible borrowers, with 100% LTV and longer fixed-rate options. You can read more about the product on April Mortgages’ official no-deposit mortgage page.
However, buyers should understand the technical details before applying.
Key points:
- A no deposit mortgage means you may not need a cash deposit.
- You still need to pass affordability checks.
- You still need money for buying costs.
- The property must meet lender rules.
- The main risk is negative equity.
- A larger deposit may still give more lender choice.
- Advice is important before choosing this route.
If you are at the early stage of buying, our first-time buyer mortgage guide may also help.
What Is a No Deposit Mortgage?
A no deposit mortgage is a mortgage where the buyer may borrow up to 100% of the property value.
For example, if a property costs £250,000, a 100% mortgage could allow borrowing of £250,000. This would be subject to lender approval, affordability checks and property criteria.
Most first-time buyers usually need a deposit. This is often 5% or more of the purchase price. A no deposit mortgage removes that initial deposit requirement, but it does not remove the responsibility of borrowing.
The lender still needs to assess whether the mortgage is affordable. They will also consider the property, the applicant’s credit history and the long-term risk.
A deposit normally gives a buyer an equity cushion from day one. Without that cushion, the mortgage starts at the full property value. That makes the product more sensitive to changes in house prices.
How Does a 100% LTV Mortgage Work?
LTV means loan-to-value.
It compares the mortgage amount with the property value.
If you buy a property for £250,000 with a £12,500 deposit, the mortgage would be £237,500. That would be 95% LTV.
If you buy the same property with no deposit, the mortgage could be £250,000. That would be 100% LTV.
This matters because LTV affects risk.
A lower LTV usually means the buyer has more equity in the property. A higher LTV means the buyer starts with less equity, or no equity at all.
With a no deposit mortgage, the lender may apply stricter checks because the starting risk is higher.
April Mortgages and No Deposit Mortgages
April Mortgages is relevant because it offers a no deposit mortgage for eligible borrowers.
Its product is designed for buyers who may have stable income and good affordability, but who have not built a traditional deposit.
The product is not simply about borrowing more. It is about whether the buyer’s circumstances fit the lender’s rules.
April Mortgages has published information about 100% LTV borrowing and 10- or 15-year fixed-rate options. The longer fixed period is designed to give payment certainty over a longer time.
That structure can be useful for some first-time buyers. However, it also means the commitment should be considered carefully.
A fixed rate can give stability. Yet the buyer still needs to consider future plans, moving home, overpayments, changes in property value, and long-term affordability.
For a more detailed explanation of how these products work, read our guide to no-deposit mortgages.
What Criteria Could Apply?
Every lender has its own rules. Criteria can also change.
For a no deposit mortgage, lenders may consider:
- Income level
- Employment status
- Credit history
- Monthly commitments
- Bank statements
- Property type
- Property value
- Household affordability
- Loan term
- Residency status
- Future financial stability
April Mortgages has previously published criteria including a minimum household income, good credit history and property rules. It has also stated that the no deposit product is for eligible main residence house purchases.
This means the product may not suit every first-time buyer.
For example, a buyer looking at a flat or new build property may need another option. A buyer with credit issues may also need a different route.
The important point is simple. A no deposit mortgage is not only about the deposit. It is about the whole case.
No Deposit Does Not Mean No Money Needed
This is one of the most important points for first-time buyers.
A 0% deposit mortgage may remove the need for a traditional property deposit. However, you may still need money for other costs.
These may include:
- Solicitor fees
- Valuation costs
- Survey costs
- Moving costs
- Buildings insurance
- Mortgage advice fees, where applicable
- Search fees
- Initial repairs or furniture
- Emergency savings after completion
Stamp Duty may also apply, depending on the purchase price, buyer status and location.
You can estimate possible tax costs using our Stamp Duty calculator.
A first home should not leave you financially exposed from the first month. That is why spare savings still matter, even when no deposit is required.
The Main Risk: Negative Equity
Negative equity occurs when the mortgage balance exceeds the property’s value.
For example, you may buy a home for £250,000 with a 100% mortgage. If the property value later falls to £240,000, the mortgage may be higher than the home is worth.
This can create practical problems.
It may make it harder to:
- Sell the property
- Remortgage to another lender
- Move home
- Raise further borrowing
- Manage a change in circumstances
Negative equity is not guaranteed. Property values can rise or fall.
However, the risk is higher when the buyer starts with no deposit. MoneyHelper explains that 100% mortgages can carry risks, including negative equity if property values fall. You can read its guide to 100% mortgages.
This is why advice matters. The question is not only whether you can enter the market. It is whether you can stay secure once you are in it.
Who Might a No Deposit Mortgage Suit?
A no deposit mortgage may suit some first-time buyers who have income strength but limited savings.
This could include buyers who:
- Pay high rent each month
- Have a stable income
- Have a good credit record
- Want to buy a main residence
- Plan to stay in the property for longer
- Can afford the monthly payments
- Have enough money for other buying costs
- Understand the risk of high LTV borrowing
The product may be less suitable for buyers who expect to move quickly. It may also be unsuitable where the property does not meet the lender’s rules.
A no deposit mortgage should not be treated as a shortcut. It is a specific product for specific circumstances.
No Deposit Mortgage vs Low Deposit Mortgage
A no deposit mortgage is not the only option.
Some first-time buyers may be better served by saving a smaller deposit first. Even a 5% deposit can sometimes create more choice.
Possible alternatives include:
- 95% LTV mortgages
- 90% LTV mortgages
- Gifted deposit mortgages
- Family-assisted mortgages
- Joint borrower arrangements
- Shared ownership
- Waiting longer to build a stronger deposit
Each option has trade-offs.
A no deposit mortgage may help you buy sooner. A low deposit mortgage may offer wider lender choice. A larger deposit may reduce risk and improve future options.
The right route depends on your income, credit file, property plans and monthly budget.
Affordability: The Test Behind the Headline
The headline is about no deposit.
The real test is affordability.
A lender will assess whether the mortgage looks affordable now and in future. This may include income, committed spending, credit commitments, dependants, household bills and wider financial behaviour.
The lender may also stress test affordability. This helps assess whether the mortgage could still be manageable if costs change.
First-time buyers should also compare the mortgage payment with the full cost of ownership.
Owning a home can include:
- Council Tax
- Buildings insurance
- Repairs
- Service charges, where relevant
- Utilities
- Ground rent, where relevant
- Maintenance
- Emergency costs
Before applying, it helps to estimate possible payments with our mortgage calculator.
The Philosophical Point: Access Is Not the Same as Suitability
A no deposit mortgage can open a door.
However, a door is not the same as a destination.
Buying a first home is not just a transaction. It is a long-term financial decision tied to work, family, location, stability and future plans.
That is why the technical details matter.
The deposit is visible. The deeper questions are less visible.
Can the buyer afford the mortgage if life changes?
Does the property suit the lender’s rules?
Could the buyer stay in the home long enough for the product to make sense?
Would a small deposit create better options?
Is payment certainty worth the longer fixed commitment?
A good mortgage decision should answer these questions before the application starts.
Why Mortgage Advice Matters
A no deposit mortgage needs careful advice.
A mortgage adviser can help you understand:
- Whether you may meet lender criteria
- Whether the property type is acceptable
- How 100% LTV affects risk
- How the fixed rate period works
- Whether overpayments are allowed
- What happens if you move home
- Whether another product may be more suitable
- How the monthly payment fits your wider budget
This is especially important for first-time buyers. You may be making your first major financial commitment, and the first choice can shape the next one.
If you want to compare advisers by location, language or preference, you can use Connect Experts to find first-time buyer mortgage advisers.
Connect Experts is part of the Connect Group. It is a mortgage adviser directory and matching platform. Advice is provided by the adviser or firm you choose.
You can also use the broader mortgage broker directory to compare advisers for different mortgage needs.
Can Connect Mortgages Help?
Connect Mortgages can help first-time buyers review whether a no deposit mortgage may be suitable.
We can look at your income, property plans, credit profile, monthly commitments and buying costs. We can also explain whether April Mortgages or another lender may fit your circumstances.
If a no deposit mortgage is not suitable, we can review other first-time buyer options.
FAQs: First-Time Buyer No Deposit Mortgages
Can first-time buyers get a mortgage with no deposit?
Yes, some first-time buyers may be able to get a mortgage with no deposit. This depends on lender criteria, affordability, credit history and property type.
What is a 100% LTV mortgage?
A 100% LTV mortgage means the mortgage may cover the full property value. For example, a £250,000 property could have a £250,000 mortgage, subject to lender approval.
Does April Mortgages offer a no deposit mortgage?
Yes. April Mortgages offers a no deposit mortgage for eligible borrowers. Its published information refers to 100% LTV and 10 or 15-year fixed rate options.
Do I still need money if I have no deposit?
Yes. You may still need money for legal fees, surveys, moving costs, insurance, Stamp Duty where applicable and emergency savings.
Is a no deposit mortgage risky?
It can be. The main risk is negative equity. This can happen if the property value falls below the mortgage balance.
Can I buy a flat with a no deposit mortgage?
This depends on the lender. Some no deposit products have property restrictions. You should check the lender’s current criteria before applying.
Is a no deposit mortgage better than saving a 5% deposit?
Not always. A no deposit mortgage may help some buyers purchase sooner. However, a 5% deposit may offer more lender choice and reduce risk.
Can I get a no deposit mortgage with bad credit?
It may be harder. No deposit mortgages usually involve strict underwriting. Buyers with credit issues may need specialist advice and alternative options.
Are no deposit mortgages only for first-time buyers?
Not always. Some products may be available to first-time buyers and home movers. Criteria will depend on the lender.
Should I get advice before applying?
Yes. A no deposit mortgage should be reviewed carefully because it affects affordability, risk, future remortgage options and moving plans.
