Mortgage providers offering full financing to house buyers: Which individuals are eligible and is it financially advisable?
breakin' it down:
Home buyers get a shot at scoring a 100% mortgage, thanks to April Mortgages, who just launched this 'no-dough' offer.
This lender's also known for dishing out up to seven times annual income on some mortgages[2] - but for this deal, buyers can claim homes worth up to 4.49 times their yearly take-home pay[1].
For instance, a £40k-a-year earner could nab a house worth £179,600 without dipping into savings[1]. Of course, they'd need to manage the raised mortgage payments and stump up some cash for legal fees, a surveyor, and stamp duty when applicable.
Here's a fun fact: April sets a minimum income of £24k to lock down the 100% mortgage, and borrowers will have to agree to a 10-year or 15-year fixed-term commitment - much lengthier than usual two- or five-year deals[1].
Pro tip: The new mortgage may assist first-time buyers lacking the 'Bank of Mum and Dad' bucks[3]. Yet, forgoing a deposit means higher monthly bills. Keep that in mind.
Rates n' digits:**
Initially, the interest rate on a £200k mortgage hovers around 5.99% over 25 years, resulting in an £1,288 monthly payment[1]. A 5% deposit with Nationwide Building Society could get a rate as low as 4.79%, with only five years tied down - but it comes with a £999 fee[1]. That translates to a £1,145 monthly outlay.
April attempts to sweeten the deal by providing an automatic rate reduction as payments are made, decreasing the loan-to-value ratio[1]. There are no early repayment charges when shifting homes or repaying with personal funds. However, exiting the deal before the fixed term brings an early repayment charge[1].
Known complications:
Some experts caution against taking on large loans and reckon saving a small deposit might be wiser in the long run[3]. Others've raised eyebrows, recalling looser mortgage practices that contributed to the 2008 financial crisis[3].
On the competitive scene:
A handful of deals scratch the no-deposit threshold today, but most ask for a guarantor, collateral, or deposit held for some time[4]. For example, Halifax's Family Boost mortgage requires a family member to place 10% of the home's cost in a three-year fixed savings account, serving as security[4]. The first-time buyer alone handles the mortgage and can reclaim savings plus interest after three years, as long as payments are current.
Yorkshire Building Society's Accord Mortgages has a 99% loan-to-value mortgage that demands a £5k deposit and is only available for properties up to £500k[4]. This deal only covers houses, not flats, and demands at least one applicant be a first-time buyer[4].
The fresh April Mortgage offer skips family help and might inspire more lenders to offer similar deals or even exceed the 100% mark[4]. In the early 2000s, some lenders pitched over-100% loans as a way for first-time buyers to bank cash for furnishings and appliances[4].
As of 2025, Riz Malik, Director at R3 Wealth, predicted a surge of lenders joining the 100% LTV sphere as the housing market stays robust [4]. "You could be forgiven for thinking we're back in the early 2000s," he stated[4]. Could a 100%+ loan hit the market before '25-end? Time will tell!
[1] - [research source 1][2] - [research source 2][3] - [research source 3][4] - [research source 4]
- Properly planning personal-finance matters with this 100% mortgage offer from April Mortgages could potentially allow homebuyers to save a significant amount that would otherwise be required as a deposit.
- With April Mortgages' no-dough offer, buying a property without touching personal-finance reserves could free up funds for business investments or personal-finance growth opportunities.
- Managing a high mortgage and related property expenses such as legal fees, surveyor costs, and stamp duty without relying on savings might provide a chance to focus on reducing other debts, ultimately improving overall financial health and savings capacity.
