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April Mortgages launches 100% LTV mortgage: "Will there be a lender offering over 100% by the end of the year?"

Journalist: Justin Moy, Contributing Editor

ended 16. May 2025

Longer term lender, April Mortgages, has today announced a new 100% loan-to-value mortgage, which will go live from tomorrow, Friday, 16th May. Under the terms of the mortgage, borrowers will need to fix their interest rate, starting at 5.99%, over a 10- or 15-year period.

To qualify for the mortgage, first-time buyers and home movers will need a minimum income of £24,000 but will not need a deposit. The mortgage deal will be for a minimum of 10 years fixed, which is the primary reason the lender will not require additional security, given that term will reduce the risk of negative equity on the deal.

There are some other small, or no deposit mortgage deals currently in the mortgage market, most requiring some form of collateral security from a parent's property or a cash deposit held with the lender for a period of time. But this new mortgage option from April Mortgages avoids the need for any additional help.

A 100% mortgage also means that parents, aka the Bank of Mum and Dad, will not have to sell their silver to help with a deposit, when even a £30,000 gift would not be enough to secure a decent mortgage deal.

Details of the new product are on the April Mortgages website >> here <<. Newspage asked brokers for their views, below.
 

10 responses from the Newspage community

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Editor
Craig Fish
Director at Lodestone Mortgages
It’s encouraging to see lenders like April Mortgages take a fresh approach to the affordability crisis. A 100% mortgage, backed by a minimum 10-year fixed term and tight income caps, shows this isn’t a return to reckless lending. It’s a calculated step to support buyers excluded by sky-high deposit demands. With borrowing capped at £600k and income limited to 4.49x, the safeguards are clear. This product won’t suit everyone—but for some, it could be a lifeline. It provides stability, certainty and access to homeownership without relying on the Bank of Mum and Dad. It’s open to more than just first-time buyers too, which adds flexibility in a gridlocked market. Ultimately, the real problem remains the fact that we simply don’t have enough homes. But until supply catches up, thoughtful lending like this is a welcome piece of the puzzle.
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Justin Moy
Managing Director at EHF Mortgages
This has the feel of a seismic event within the mortgage market, the first no-strings 100% mortgage deal for several years. There are plenty of potential borrowers stuck with little or no deposit or who don't have the family finance opportunities for a gift, and so continue to live with family or rent for many years. This opportunity from April Mortgages provides a welcome solution for this demographic, combining the security of a long-term deal and a decent rate. The reaction from other high street lenders will be interesting. Some will have plans for a similar product so the reaction to this from April may twist the arm of others to try their luck, too. A great move, but it's not the right solution for everyone.
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Riz Malik
Independent Financial Adviser at R3 Wealth
There will be more lenders entering the 100% loan-to-value bracket as the housing market continues to show resilience. Lenders want to lend and they will find new or old ways to do that. You could be forgiven for thinking we are back in the early 2000s. Will there be a lender offering over 100% by the end of the year?
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
There’s no doubt that this product could be useful to some and you have to applaud April for its innovation. But we have to sit back and reflect on what’s happening at the moment. Lenders are lending more and the Government is encouraging regulators to let them lend more. Those who experienced the Global Financial crisis might be wondering whether history will soon repeat itself.
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Rohit Kohli
Director at The Mortgage Stop
100% mortgages are making a comeback but are they right given historical experience? On the other hand, more and more young families are struggling to save for their deposit so for the right people under the right circumstances this could be a blessing.
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Bob Singh
Founder at Chess Mortgages
In another move that solidifies and reinforces the confidence in the UK’s resilient property market, April have launched the 100% mortgage for the common folk — and not just for the high earners. With a rate of 5.99% fixed requiring a minimum annual income of just £24k it will definitely have mass appeal making that first vital step that much easier. 15 years is a long commitment so advice needs to be taken when other schemes may be more suited with as little as 1% or £5k only. 5.99% may appear high but in the scheme of things it’s fairly competitive. With rates expected to fall, the only dilemma is whether to wait or buy now.
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Dariusz Karpowicz
Director at Albion Financial Advice
A game-changer has arrived in the mortgage market. April Mortgages' new 100% LTV offering brings homeownership within reach for many who have been sidelined by soaring deposit requirements. With no need for parental assistance or additional security, this 10-15 year fixed deal starting at 5.99% represents a measured approach to affordability barriers rather than reckless lending. The minimum income threshold of £24,000 makes this accessible to average earners, not just the affluent. While the long-term commitment provides stability and protects against negative equity concerns, it won't suit everyone's circumstances. As other lenders watch market reaction, we might see similar products emerge - perhaps even exceeding 100% LTV by year's end? This innovation addresses a critical gap, though the underlying housing supply shortage remains the fundamental challenge.
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Daniel Hobbs
CEO at New Leaf Distribution
This seems like it could be a real win for borrowers who have been feeling the pain of huge inflationary house price pressure. A combination of a long term product and 100% lending (albeit with restrictions) is refreshing and could be a game changer for the marketplace, especially for first time buyers.
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Hannah Bashford
Director at Model Financial Solutions
You can’t fault April Mortgages for their innovation. This feels like a well thought out offering that will appeal to those struggling to get together a deposit. Whether it is a sensible option to bring back 100% mortgages remains to be seen.
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Sean Horton
Managing Director at Respect Mortgages
April's no-deposit 100% mortgage is innovative, brave and fills a genuine gap in British home financing. The longer fixed terms offer necessary stability but I can't help thinking that 5.99% is a high price to pay. For renters caught in the savings trap, this creates a genuine pathway to ownership without the need for family cash. The income requirements and fixed period show careful risk management rather than careless lending. What's most compelling is how this addresses the actual hurdle many face: not affordability of monthly payments, but the impossible task of saving while paying high rents. This will likely prompt other lenders to follow suit, expanding options across the market while maintaining sensible safeguards.