Providing expert mortgage advice for over 28 years.
Providing expert mortgage advice for over 28 years.
New 100% mortgage options are now available to eligible first-time buyers through select UK lenders.
No deposit needed: Ideal for renters who struggle to save due to high monthly payments.
Designed to help more people step onto the property ladder with a no-deposit mortgage.
Key risks include negative equity and higher mortgage repayments.
A growing number of lenders have introduced 100 per cent mortgage products. With rising rents and property prices, saving a 5 per cent deposit has become a major obstacle for many. These no-deposit options offer first-time buyers a realistic way to purchase their first home quicker.
This new wave of mortgage products is driven by lenders and not part of a government scheme. They’re ideal for renters with consistent, reliable payment histories who are struggling to save for a deposit.
A 100% mortgage allows you to borrow the full property value with no deposit required. This is different from traditional mortgages, which typically require at least a 5% deposit.
These products were largely withdrawn after the 2008 financial crisis, but they’re making a cautious comeback in 2025 with stricter checks.
April Mortgages provides fixed-rate 100% mortgages starting at 5.99% over 10 or 15 years. No guarantor or rental history is needed, but you’ll need a household income of at least £24,000.
Gable Mortgages offers five-year fixed 100% mortgages (5.95% standard, 5.65% for new builds). Applicants must be 23 or older and borrow at least £125,000. Key workers can benefit from higher income multiples.
Guarantor mortgages: A family member guarantees the loan and agrees to repay if you can’t.
Track record lending: You must show rent payments that match or exceed the expected mortgage repayments.
Purchase your home sooner without waiting to save a large deposit.
No stamp duty on first homes under £300,000 (for first-time buyers in England and Northern Ireland).
If you are renting, you could benefit from a huge reduction in costs when compared to a mortgage.
Negative equity risk if property prices fall.
Higher monthly repayments can stretch your budget.
Longer mortgage terms may be needed to reduce payments.
Some products cannot be ported, so if borrowers move house, they will pay early repayment charges.
Right to Buy
Explore alternative paths:
Save a Small Deposit: Even a 5% deposit can improve your mortgage options.
Government Schemes: Look into the First Homes scheme, Lifetime ISA, or shared ownership.
Family Support: Consider a gifted deposit or joint mortgage.
Securing a no-deposit mortgage can be confusing. We can help you:
Find the most suitable mortgage product
Work out your LTV (Loan-to-Value)
Compare rates and terms from 75 different lenders
Speak to one of our expert mortgage advisers today.
The return of 100% mortgage products is opening the door for many first-time buyers. But while a no-deposit mortgage is a promising opportunity, it’s essential to consider the potential drawbacks. Talk to an expert and make sure you’re choosing the best option for your future.
Reach out to our team of mortgage advisors. Whether you have a small deposit or none at all, we’re here to help you explore the best options, be it a no-deposit mortgage, lender offer, or government-backed initiative.
LTV (Loan-to-Value): The percentage of the home’s value you borrow. Lower LTVs often mean lower interest rates.
Negative Equity: When your outstanding loan exceeds your home’s current value.
Guarantor: Someone who agrees to take over your mortgage repayments if you’re unable to.
Stamp Duty: A property purchase tax in the UK. First-time buyers pay 0% on the first £300,000, and 5% on the next £200,000. No relief is available for homes priced over £500,000.
At New Homes Mortgage Services LLP, we strive to provide accurate and up-to-date information at the time of publication. However, due to the dynamic nature of the property market, details may change and this content is intended for general informational purposes only. It does not constitute financial or professional advice and should not be relied upon as such.
We cannot accept responsibility for any decisions made based on this information. For advice tailored to your individual circumstances, please consult our qualified mortgage advisors. We recommend that you independently verify any important details before making financial commitments.
