Breaking News: April Mortgages Launches Innovative No Deposit Mortgage Product
In a move aimed at supporting first-time buyers struggling to access family support or raise a deposit, April Mortgages has launched a 100% loan-to-value (LTV) product. The No Deposit Mortgage, available on 10- and 15-year fixed terms, is designed to help creditworthy borrowers with reliable incomes who are finding it difficult to save while renting.
According to The Intermediary, the lender has created this product in direct response to market conditions where high house prices, rising rents, and the erosion of purchasing power have left many prospective buyers unable to break free from the rental trap. The interest rates for this product start from 5.99%, with borrowers eligible for automatic rate reductions as their loan-to-value ratio falls over time.
James Pagan, director of product at April Mortgages, was quoted by The Intermediary as saying: "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."
The No Deposit Mortgage offered by April Mortgages includes several attractive features, such as no early repayment charges for borrowers who move or repay the loan from personal funds, as well as unlimited overpayments. Loans of up to 4.49 times income are permitted, subject to full affordability and credit checks. Rachael Hunnisett, director of mortgage distribution at April Mortgages, added: "The housing market has shifted dramatically. Wage growth struggles to compete with rising house prices, and owning a home has become harder to achieve, even for those with steady incomes. At April, we’re committed to making mortgages simpler, more flexible, and better suited to the way people live today."
Industry experts have welcomed the launch of this product, with Nick Mendes, mortgage technical manager at John Charcol, describing it as "a smart, well-structured product that addresses today’s affordability challenges head-on". Mendes praised the inclusion of automatic rate reductions and flexible overpayment terms. Kate Fuller, business principal at Mortgage Advice Bureau, noted that "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."
The launch of April Mortgages’ No Deposit Mortgage product comes at a time when the UK housing market is facing significant challenges. According to recent figures, the average deposit to buy a UK home now exceeds £60,000, with London buyers needing more than £100,000. First-time buyer completions fell to their lowest level in a decade in 2023, while average house prices and rents continue to rise, further excluding renters from ownership. David Hollingworth, associate director at L&C Mortgages, agreed that "solutions for those with little or no deposit but solid affordability could bring renewed hope" and praised the combination of long-term rate stability with repayment flexibility.
As reported by The Intermediary, April Mortgages’ innovative product aims to address the current affordability challenges in the housing market. With its competitive interest rates, flexible repayment terms, and commitment to making mortgages more accessible, this product is set to make a significant impact in the industry.
In conclusion, April Mortgages’ launch of the No Deposit Mortgage product is a significant development in the UK housing market. As The Intermediary reported, this product has the potential to help first-time buyers who are struggling to access family support or raise a deposit. With its attractive features and competitive interest rates, this product is likely to be popular among borrowers and is a welcome addition to the mortgage market.
The implications of this product launch are far-reaching, and it will be interesting to see how the market responds. As the UK housing market continues to evolve, it is clear that innovative products like the No Deposit Mortgage will play a crucial role in helping buyers achieve their dream of homeownership.
According to industry experts, this product has the potential to bring renewed hope to those struggling to get on the property ladder. As The Intermediary noted, April Mortgages’ commitment to making mortgages simpler, more flexible, and better suited to the way people live today is a step in the right direction.
The mortgage market is set to become even more competitive, with lenders vying for business from borrowers. As reported by The Intermediary, April Mortgages’ No Deposit Mortgage product is a significant addition to the market, and it will be interesting to see how other lenders respond to this development.
Overall, the launch of April Mortgages’ No Deposit Mortgage product is a positive development for the UK housing market. As The Intermediary reported, this product has the potential to help first-time buyers achieve their dream of homeownership, and it will be interesting to see how the market responds to this innovative product.
