First time buyers without bank of mum and dad are given £60k boost | Personal Finance | Finance

A mortgage lender has launched a no deposit mortgage for home buyers who do not have financial help from their families.

April Mortgage’s 100% loan to value (LTV) home loan is availalbe on a 10- and 15-year fixed rate starting at 5.59% which the lender said would offer borrowers ‘long-term payment certainty’. Mortgages are available up to 4.49 times annual salary and there are no early repayment charges for moving and redeeming.

According to a recent release from Halifax, the average deposit put down to buy a property in the UK is now more than £60,000, while in London it exceeds £100,000

April’s no deposit mortgage launches at a time when saving a deposit continues to be a significant hurdle for would-be homeowners.

According to the same study, the number of first-time buyer mortgage completions in the UK fell to £287,060 in 2023, the lowest level in a decade and down from 405,250 in 2021.

This product is designed for buyers with a good credit rating who can clearly afford monthly repayments.

James Pagan, director of product at April Mortgages said: “Saving for a deposit remains one of the biggest barriers to home ownership, even for those with strong incomes and a solid credit profile. We believe the answer lies not in loosening standards, but in designing products that better reflect the realities of today’s housing market.

“By removing the need for upfront savings and providing payment security over the long term, we’re giving brokers a new way to support underserved buyers. We’ve worked closely within the product design to ensure this is a sustainable product, built for the realities of the modern market.”

Nick Mendes, mortgage Technical Manager at John Charcol said: “What really stands out is the flexibility built into the product. Removing early repayment charges when moving home or making overpayments gives borrowers freedom and control.”

Kate Fuller, business principle, Mortgage Advice Bureau said: “We haven’t seen 100% mortgages like this since 2008, so to see them finally return really shows how much positivity there is in the property market right now.

David Hollingworth, associate director at L&C Mortgages said: “Not only are house prices high but rent and the cost of living have increased substantially in recent years. First time buyers, in particular, must therefore battle with the difficulty of building an adequate deposit and all too often will rely on help from parents.”

Rachel Geddes, strategic lender relationship director, Mortgage Advice Bureau “The market has long been crying out for innovation to tackle the challenges faced by prospective homebuyers trying to get their foot on the property ladder.”