April Mortgages has expanded the criteria for its 100% loan-to-value (LTV) no deposit mortgage, allowing homeowners to buy a new property with no deposit while letting out their existing home.
This update followed broker feedback that more people want to keep their current property as a buy-to-let (BTL) and move without selling first.
With this change, borrowers can let out their current home, purchase a new one with no deposit, and sell their original property later to repay the mortgage.
The product offers uncapped overpayments and interest rates that reduce as LTV drops.
Borrowers with a larger deposit can access up to 7x loan-to-income on affordability, also without having to sell their home first.
Rachael Hunnisett, director of mortgage distribution at April Mortgages, said: “Moving home should be simple, but we’ve all seen how fragile property chains can be.
“By giving borrowers the flexibility to keep their existing residential property as a buy-to-let and still use an April Mortgage for the onward purchase, whether it’s up to 7x LTI or 100% LTV (capped at 4.49x LTI), we’re opening up more options for customers.”
“Our uncapped overpayments and the absence of ERCs at any stage unless remortgaging mean that this criteria change could be a real breakthrough for families across the country.”
