No Deposit Mortgages – What You Need to Know
Saving for a deposit is often the biggest hurdle for first-time buyers. Rising living costs make saving harder.
No-deposit mortgages, also called 100% mortgages, let you buy without a deposit. This can make homeownership possible sooner.
These mortgages usually have higher interest rates and stricter affordability checks. Lenders may restrict borrowing in high-value areas.
Without initial equity, you risk negative equity if property prices fall. This could leave you owing more than your home’s value.
How 100% Mortgages Work
Traditional 100% mortgages disappeared after the 2007–08 financial crisis. Some have returned to help buyers who can afford repayments.
Options available today include:
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Fixed-rate deals where repayments remain unchanged for an agreed term.
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Products requiring proof of regular, on-time rent payments.
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Lenders offering higher income multiples for key workers.
At Connect Mortgages, we review each product to ensure it fits your needs. Lender rules vary on income multiples and property types.
April Mortgages – Exclusive Network Access
April Mortgages reduces your interest rate as your loan-to-value decreases. This rewards you for reducing your mortgage balance.
They require a fixed rate for 10 or 15 years, starting from 6.29%. This may not suit everyone.
It can work well for those making regular overpayments or expecting a future lump sum.
Connect Mortgages is among the few UK networks able to submit applications directly to April Mortgages. This gives our clients rare access.
Nearly 100% and Low-Deposit Alternatives
Saving a small deposit could open other mortgage options:
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99% mortgages needing as little as £5,000.
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95% mortgages needing a 5% deposit, with more lenders and lower rates.
A 10% deposit often brings better rates and improves approval chances.
Is a 100% Mortgage Right for You?
These products suit buyers who can meet repayments but cannot save a large deposit. They are not about finding the lowest rate.
Connect Mortgages can explore 100% mortgages, April Mortgages access, low-deposit products, and guarantor options. We match solutions to your circumstances.
If you want to know if you qualify for a 100% mortgage, click Contact Us
If you are a broker and would like to access April Mortgage products on behalf of your client, click here
Thank you for reading our publication “No Deposit Mortgages | 100% Mortgage with April Mortgages.” Stay “Connect“-ed for more updates soon!
