April Mortgages has launched a 100% loan-to-value (LTV) product designed to support first-time buyers who are unable to access family support or raise a deposit.
The No Deposit Mortgage is available on 10- and 15-year fixed terms and is aimed at creditworthy borrowers with reliable incomes who are struggling to save while renting.
The lender said the product was created in direct response to market conditions where high house prices, rising rents, and the erosion of purchasing power have left many prospective buyers unable to break free from the rental trap. Interest rates start from 5.99%, with borrowers eligible for automatic rate reductions as their loan-to-value ratio falls over time.
James Pagan, director of product at April Mortgages, said: “Saving for a deposit remains one of the biggest barriers to home ownership, even for those with strong incomes and a solid credit profile. We believe the answer lies not in loosening standards, but in designing products that better reflect the realities of today’s housing market.”
The No Deposit Mortgage includes no early repayment charges for borrowers who move or repay the loan from personal funds, as well as unlimited overpayments. Loans of up to 4.49 times income are permitted, subject to full affordability and credit checks.
Rachael Hunnisett, director of mortgage distribution at April Mortgages, added: “The housing market has shifted dramatically. Wage growth struggles to compete with rising house prices, and owning a home has become harder to achieve, even for those with steady incomes.
“At April, we’re committed to making mortgages simpler, more flexible, and better suited to the way people live today.”
Industry commentators have welcomed the move. Nick Mendes, mortgage technical manager at John Charcol, described it as “a smart, well-structured product that addresses today’s affordability challenges head-on”, praising the inclusion of automatic rate reductions and flexible overpayment terms.
Kate Fuller, business principle at Mortgage Advice Bureau, said: “We haven’t seen 100% mortgages like this since 2008, so to see them finally return really shows how much positivity there is in the property market right now.”
David Hollingworth, associate director at L&C Mortgages, agreed that “solutions for those with little or no deposit but solid affordability could bring renewed hope” and praised the combination of long-term rate stability with repayment flexibility.
April’s announcement follows new figures showing the average deposit to buy a UK home now exceeds £60,000, with London buyers needing more than £100,000. First-time buyer completions fell to their lowest level in a decade in 2023, while average house prices and rents continue to rise, further excluding renters from ownership.
