April mortgages for first-time buyers: a no-deposit solution explained

Is a 100% mortgage still a realistic route for first-time buyers?

For many people buying their first home, the challenge isn’t always affordability for monthly payments—it’s the deposit. In the UK, deposits can be a significant hurdle, especially in higher-price areas.

A 100% mortgage scheme is designed for buyers who can typically manage repayments but struggle to save a deposit quickly enough. This guide explains what a “100% mortgage” is, how these schemes are often structured, what it can mean for your plans, and the main risks to weigh up.

Note: Mortgage products and terms can change. Always check the specific offer details before applying.

What is a 100% mortgage?

A 100% mortgage lets you borrow the full purchase price of a property, without paying a cash deposit (subject to lender criteria).

Some 100% schemes (including those marketed under the April brand) use a structure that differs from many traditional no-deposit options:

• You choose a fixed-rate term (often 10 or 15 years).
• The starting interest rate is typically higher than standard mortgages.
• As your loan-to-value (LTV) improves, the mortgage is designed so your rate may reduce automatically under the product rules—potentially without switching lenders.

The overall idea is to support first-time buyers who want a clear repayment period and a mortgage cost that can respond as equity builds.

How the structure works in practice

1) Fixed term for payment certainty

These mortgages are structured around a fixed-rate period. That can help if you value budgeting stability and want to know what your mortgage payments are likely to be for a set timeframe.

2) Rate reduction linked to LTV improvement

A key feature is the way the mortgage pricing can change as your LTV improves.

In simple terms, as you make payments and your balance reduces (and/or if the property value changes), your LTV may move in a way that triggers a lower rate under the product rules.

3) No-deposit borrowing means higher monthly payments

Because you’re borrowing 100% of the purchase price, the mortgage amount is larger than it would be with a deposit. That usually results in higher monthly repayments compared with a similar mortgage where you put down a deposit.

Who a 100% mortgage may suit

A 100% mortgage is not designed for every first-time buyer. It tends to fit best where you can meet affordability requirements and you understand the trade-offs.

These schemes may be considered if:

• you can afford the monthly repayments but saving a deposit is the main barrier
• you have a stable income and can demonstrate affordability
• you’re comfortable with a long fixed commitment
• you plan to stay in the property long enough for the mortgage structure to work as intended

Typical eligibility points to check (before you start)

While exact criteria can vary by lender and offer, 100% schemes marketed under the April brand have commonly referenced requirements such as:

• Minimum household income (often quoted as £24,000)
• Borrowing up to a multiple of income (commonly referenced as up to 4.49 times annual income)
• Loan amount range (commonly referenced as £50,000 to £600,000)
• Property value minimum (often referenced as £75,000 or more)
• Restrictions on property types (for example, flats and new builds may be excluded)
• Age limits (for example, under 70 at application and under 80 at end of term)

Because criteria can change and can be applied differently depending on circumstances, it’s important to verify the latest requirements for the specific product you’re considering.

Benefits first-time buyers often look for

1) Access to home ownership without a cash deposit

The most obvious advantage is the ability to buy without paying a deposit, where eligible.

2) Fixed-rate certainty

A fixed term can reduce uncertainty and help you plan around a known repayment period.

3) Potential rate reduction as LTV improves

For buyers who expect their LTV to improve over time, the automatic rate reduction feature can be a meaningful part of the mortgage’s design.

4) Flexibility through overpayments (where allowed)

Some no-deposit products include rules about overpayments. Overpayment flexibility can help you reduce the balance faster if your finances allow.

Risks and important considerations

A 100% mortgage can be a powerful tool, but it comes with trade-offs that should be understood clearly.

1) Negative equity risk if property values fall

If house prices drop, you could owe more than the property is worth—especially when you start with 100% borrowing.

2) Higher repayments than a mortgage with a deposit

Even if you pass affordability checks, the monthly payment burden can be heavier than alternatives where you put down a deposit.

3) Early repayment charges may apply

If you need to switch lenders or repay early during the fixed period, early repayment charges may apply depending on the product terms.

4) Product commitment is usually longer

Because the structure is built around a fixed term, it may suit buyers who expect to remain in the home for a meaningful period.

5) Property choice can be restricted

Some schemes limit property types or new build eligibility. That can affect what you’re able to buy.

How a 100% mortgage compares with other no-deposit approaches

No-deposit mortgages are not all the same. Some schemes may require evidence such as a history of paying rent on time, while others focus more heavily on income and credit profile.

What often differentiates certain 100% schemes is the rate reduction mechanism tied to LTV improvement and the way the mortgage is structured around longer fixed terms.

A practical way to decide if it’s the right fit

Before considering a 100% mortgage, it helps to review your situation against the scheme’s trade-offs:

• Can you comfortably afford the repayments now, and if your circumstances change?
• How long do you realistically plan to stay in the property?
• What happens if you need to move sooner? Consider the potential impact of early repayment charges.
• How might you reduce the balance over time? Overpayment rules can matter.
• Are you comfortable with the negative equity risk that comes with 100% borrowing?

Alternatives to consider if a 100% mortgage isn’t the best match

If you’re able to save a deposit (even partially), or if you want a different balance between rate and flexibility, there may be other first-time buyer routes worth exploring—such as mortgages that allow smaller deposits, or products with different fixed-term structures.

A broker can help you compare options based on your affordability, property type, and timeline.

Summary: when a 100% mortgage can work well

A 100% mortgage can be a route onto the property ladder for first-time buyers who can meet affordability requirements but struggle to save a deposit.

It’s typically most compelling where you:

• want fixed-rate certainty over a longer period
• understand that starting costs may be higher, but the structure may be designed to reduce the rate as LTV improves
• can manage the higher monthly repayments that come with borrowing 100%
• are comfortable with the risks, including negative equity and potential early repayment charges

If you’re weighing up a no-deposit option, the key is matching the mortgage structure to your plans—especially your expected time in the home and your ability to handle repayment pressure.