No Deposit? No Problem! This New Mortgage Could Be Your Ticket to Home Ownership

By HOAR Team 16 May, 2025 5 mins read 115 Views

I nearly spat out my coffee when I saw this news. April Mortgages just dropped a bombshell on the housing market with their new 100% mortgage offer. No deposit required. None. Zilch. For anyone who's been drowning in the rental market while desperately trying to scrape together a deposit, this could be life-changing.

Let me tell you, as someone who spent 3 years eating nothing but beans on toast to save for my first home back in 2019, this news hits different.

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What's the Catch? (Because There's Always One...)

Before you get too excited, there are some hoops to jump through. You'll need a household income of at least £24,000, and teh property needs to be valued above £75,000. The deal comes with 10 or 15-year fixed terms, which is a pretty long commitment.

But here's the surprising bit - there are NO early repayment charges if you decide to move or pay off the mortgage completely. That's... actually quite generous?

For context, a 100% mortgage means borrowing the entire value of the property. So if you're eyeing up a £250,000 house, you're borrowing the full £250,000. Most lenders typically demand at least a 5-10% deposit, which on that same property would be £12,500-£25,000.

Deposits Have Become Ridiculous

God. The numbers are depressing. According to Halifax, the average UK house deposit now exceeds £60,000. In London? Try £100,000.

I remember when my parents bought their first home in the 80s with a deposit that wouldn't cover a decent sofa nowadays. Times have changed, adn not for the better.

Why This Matters More Than You Think

James Pagan from April Mortgages hit the nail on the head when he said saving for a deposit is one of the biggest barriers to home ownership. No kidding, James.

This new mortgage allows borrowing up to 4.49 times your income. You can make unlimited overpayments anytime, helping you build equity faster.

My colleague Sarah texted me about this yesterday: "Too good to be true? My landlord just raised my rent AGAIN." Poor Sarah. She's been trying to buy for years.

We've Been Here Before...

Remember 2008? I do. Barely. I was still in school when the financial world imploded.

Before the crash, HSBC and Lloyds were handing out 100% mortgages like candy. Then everything went sideways, lending rules tightened, and these products vanished overnight.

Since then, getting approved for a mortgage has been about as easy as teaching my cat to fetch. Lenders demanded bigger deposits, making home ownership a distant dream for many.

The Winds Are Changing

Recently, there's been a shift. Accord now offers a £5,000 deposit mortgage, and other lenders have been loosening their affordability rules.

Skipton Building Society has a similar 100% mortgage product, but they've been lonely in that space until now.

Nick Mendes from John Charcol called this new mortgage "crucial" for the market. He particularly highlighted the flexibility - no early repayment charges when moving home or making overpayments.

Listen. This could be huge.

Is This Your Golden Ticket?

Kate Fuller from Mortgage Advice Bureau put it perfectly: "We haven't seen 100% mortgages like this since 2008."

I'm not saying rush out and sign up tomorrow. These decisions need careful thought. But if you're stuck in the rental trap while watching house prices climb ever higher... well, this might just be worth investigating.

I spent £4K on solicitor fees and moving costs for my first place. Wish I'd had an option like this back then.

The property ladder's first rung just got a little lower. For some of you, that might make all the difference.

Frequently Asked Questions

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Statistics

In 2020, the average retirement savings for Americans aged 60 to 69 was approximately $195,000, according to Fidelity.
According to the Federal Reserve, approximately 39% of Americans do not have enough savings to cover a $400 emergency expense.
Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
According to the Bureau of Labor Statistics, the average American spends about $1,500 per year on coffee.
As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.
According to the World Bank, around 1.7 billion adults worldwide remain unbanked, lacking access to basic financial services.
As of 2021, the average American household had approximately $8,400 in credit card debt, according to Experian.
According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.

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How To

How To Develop a Good Saving Habit

Developing a good saving habit begins with setting clear financial goals. Determine what you are saving for, whether it’s an emergency fund, a vacation, or retirement. Start by automating your savings; set up a direct deposit from your paycheck into a savings account. Aim to save at least 20% of your income, gradually increasing this amount as you become comfortable. Track your spending to identify areas where you can cut back and redirect those funds to your savings. Regularly review your savings progress and adjust your contributions as necessary to stay motivated and achieve your goals.