For many aspiring homeowners, the dream of owning a property can feel increasingly out of reach. Watching house prices climb while trying to save for a substantial deposit is a significant hurdle for many, especially those currently renting. If this sounds like a familiar story for you, or your children or grandchildren, there may be some welcome news on the horizon.
A new No-Deposit Mortgage from April Mortgages is designed to help first-time buyers step onto the property ladder without the need for any initial deposit. This means eligible individuals can potentially borrow 100% of a property’s value, a significant change in the mortgage landscape.
At Yes Mortgage Services, our team has access to a comprehensive panel of lenders, including exclusive products like this one. The best part? We do not charge any broker fees for our services.
How Does a No-Deposit Mortgage Work?
This mortgage is structured to offer long-term financial stability. Here’s a simple breakdown of its key features, based on information from April Mortgages¹:
- Long-Term Fixed Rates: You can secure a fixed interest rate for a period of ten or fifteen years. This provides peace of mind, as your monthly payments won’t change unexpectedly.
- Automatic Rate Reductions: As you continue to pay off your mortgage, the amount you owe in relation to your property’s value (the loan-to-value ratio) will decrease. With this mortgage, your interest rate will automatically be lowered as you reach certain milestones, without you needing to take any action.
- Flexibility: Life can be unpredictable. This mortgage allows for unlimited overpayments, so you can pay off your loan faster if you’re in a position to do so. Furthermore, if you decide to move house or repay the mortgage with your own funds before the end of the fixed term, you won’t face any early repayment charges.
Who Is This Mortgage For?
This product is specifically aimed at first-time buyers who have found it challenging to save for a deposit. The eligibility criteria include:
- Being a UK resident under the age of 70 (and not older than 80 at the end of the mortgage term).
- A household income of at least £24,000.
- Purchasing a house, rather than a flat or new-build property.
- The property value must be over £75,000.
- Applicants must pass a credit check and an affordability assessment to ensure the mortgage is a sustainable long-term commitment.
This mortgage is for purchasing a main residence only. All applications are subject to full underwriting to ensure repayments are affordable now and in the future.
Are There Any Risks to Consider?
As with any financial product, it’s crucial to understand the potential risks. With a 100% mortgage, the primary risk is negative equity. This can happen if house prices fall, leaving you owing more on your mortgage than your property is worth. This could make it more difficult to sell your home or remortgage in the future.
It’s also important to remember that while a deposit isn’t required, there are other upfront costs associated with buying a home. These can include stamp duty, solicitor fees, valuation costs, and moving expenses.
April Mortgages is fully regulated by the Financial Conduct Authority (FCA), and their lending decisions are based on strict rules to ensure the mortgage is suitable and affordable for the borrower.
How We Can Help
If you’re a parent or grandparent wanting to help your loved ones achieve their dream of homeownership, this no-deposit mortgage could be a significant opportunity.
Our experienced team at Yes Mortgage Services can provide expert guidance on this and a wide range of other mortgage products. We are committed to finding the most suitable solution for your family’s unique circumstances.
Get in touch with us today to discuss whether the No-Deposit Mortgage could be the key to unlocking the door to a first home for your children or grandchildren.
We do not charge a fee for mortgage advice.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Sources:
¹ April Mortgages (2025). No Deposit. Available at: https://www.aprilmortgages.co.uk/consumer/no-deposit/[Accessed 19 May 2025].
All the information in this article is correct as of the publication date of 14 June 2025. The opinions expressed in this publication are those of the authors.
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At Yes Mortgage Services, we offer a comprehensive range of products from across the market.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.
