The 100% Mortgage: A Game-Changer for Aspiring Homeowners

Let’s talk dreams — the big ones that homeowners chase.

Owning your own home has always been top of the list for many homeowners. It’s that major adulting milestone homeowners aim for: the keys, the doormat that says “Home Sweet Home” and the joy of painting your own walls whatever colour you please without a landlord breathing down your neck. But for years, there’s been one giant, unavoidable buzzkill getting in the way: The deposit.

We are talking tens of thousands of pounds. In London, it’s not unusual to hear of people needing upwards of £60,000 for a deposit alone. That’s enough to make anyone abandon the dream and settle for overpriced rent, instead of pushing to be aspiring homeowners.

But wait. There’s a kid on the block and it’s shaking things up.

Say hello to the 100% Mortgage.

Yes, you read that right. No deposit needed.

So, what does this mean for the average renter, the self-employed hustler, the newlywed couple or the single mum putting in overtime? It could mean owning a home is finally within reach.

Let’s break it down.

What is the 100% Mortgage and Who’s Behind It?

In April 2025, April Mortgages launched what might be the most exciting product in the mortgage world in years. For the first time since the 2008 financial crisis, we are seeing a return of the 100% mortgage and it’s specifically designed to help first-time buyers who are tired of watching the housing market sprint away from them.

While previous 100% mortgages had a reputation for being risky and volatile, this new offer has clear, smart eligibility rules that aim to protect both the borrower and the lender.

Here’s what it includes:

• No Deposit Required: You can borrow 100% of the property’s value.
• Fixed Interest Rate: Starts from 5.99%, fixed for 10 or 15 years.
• Minimum Household Income: You need to earn at least £24,000 per year.
• Property Requirements: Your future home must be valued at £75,000 or more.
• No Early Repayment Charges: You can make unlimited overpayments without penalties.

Why Is This Such a Big Deal?

If you’ve ever tried to save for a deposit while paying rent, bills, groceries and still trying to live a little, you know how daunting it is. The 100% mortgage essentially wipes out the need for that giant initial lump sum. Here’s how this changes the game:

• Renters Can Finally Compete: With rents at an all-time high, many renters are already paying what would be equivalent to a mortgage. The only thing holding them back is the deposit. Now, they are on equal footing.

• 10 or 15 Years of Stability: With a fixed rate for 10 or 15 years, you know exactly what you’re paying every month. No surprise hikes. Predictability is a win.

• Savings Can Go Towards Moving or Furnishing: Instead of draining your savings for a deposit, you can use it to furnish your home, pay for legal fees, or just not go broke the month after moving.

Is It Too Good to Be True? (A Real Talk Section)

Okay, now for the reality check. Because here, we keep it cute and candid.

• Negative Equity Risks: If house prices drop and you haven’t paid off much of your mortgage, you could end up owing more than your house is worth. This is called negative equity and it can make it hard to move or refinance.

• Interest Rates Are Higher: Let’s not sugarcoat it, 5.99% is steeper than many traditional mortgages with deposits. It’s the price you pay for not putting money down upfront.

• Strict Affordability Checks: This isn’t a free-for-all. Lenders will scrutinise your income, outgoings and credit history to make sure you can handle the payments.

Who Is This Mortgage Best Suited For?

This isn’t a one-size-fits-all solution. But if any of the following sound like you, it might be worth exploring how to join the homeowners train:

• If you have a steady job and reliable income but zero savings.
• You’re not planning to move in the next 10-15 years.
• If you have a strong credit score and minimal debt.

How to Apply (Or At Least Start Thinking About It)

If this is sounding more and more like your vibe, here’s what you should do next:

1. Check your credit score – Use ClearScore, Experian or Credit Karma. Good credit is a must.

2. Calculate your income – Your total household income should be £24K+.

3. Research available properties – Look at what’s out there in your budget. Remember, the property has to be over £75,000.

4. Talk to a mortgage broker – They can give you the real tea on your chances of approval.

Lastly…..

The 100% mortgage isn’t for everyone. But for some, it could be the green light they’ve been waiting for. It puts the dream of homeownership back on the table for thousands who have been locked out of the market.

We will be keeping a close eye on how this develops, especially as other lenders may follow suit. For now, this is your sign to get your house (and paperwork) in order, because the door just cracked open. Till next time, don’t forget to stay glued to our weekly posts for more insights.