There is potential good news for aspiring homeowners as two lenders have recently introduced 100% mortgage products, meaning a deposit isn't needed. This move aims to assist first-time buyers who have been diligently paying rent but find it challenging to save for a deposit.

April Mortgages has launched a 100% mortgage tailored for first-time buyers and home movers earning a minimum of £24,000 per annum. This offering allows borrowers to finance the entire property value without requiring a deposit, guarantor, or proof of rental history. The mortgage comes with fixed interest rates starting at 5.99% for terms of 10 or 15 years. Additionally, borrowers can make unlimited overpayments or repay early without penalties. As borrowers pay down the mortgage and the loan-to-value ratio improves, the interest rate will automatically decrease. However, it's important to note that this mortgage is not available for new-build flats and carries a higher risk of negative equity if property values decline. 

Most recently, Gable Mortgages has also just entered the market with two zero-deposit mortgage products. Firstly, a standard five-year fixed-rate mortgage at 5.95%, alongside a new-build five-year fix at 5.65%. These offerings are designed to support first-time buyers, key workers, and primary residents. Gable Mortgages has collaborated with new home builders and legal partners to develop these products, aiming to reduce costs and rates for buyers. 

Justin Le Roux, chief executive of Gable Group, said “There is a whole generation of renters out there who are struggling to save to buy and pay their rent at the same time…We believe in changing this by offering a solution where the buyer can get a quick decision based on affordability and not – like so many other products on the market – based on what they have managed to save up or borrow from the bank of mum and dad.”

While the return of 100% mortgages presents a wide range of new opportunities, it is still important that the risks involved have been assessed. Higher interest rates and the possibility of negative equity are major considerations. Financial experts advise that borrowers should ensure they can comfortably afford the repayments and have a clear understanding of the mortgage terms.

At Anthony Martin, we are committed to helping you navigate these new mortgage options. Our teams are here to provide guidance and support at every point. If you're considering a 100% mortgage or exploring other financing options, don't hesitate to reach out to us.

Source: https://www.thisismoney.co.uk/money/mortgageshome/article-14727679/amp/Another-lender-launches-100-mortgages-time-buyers.html 

This article is for informational purposes only and is not intended as financial advice. Please consult with a qualified mortgage advisor to discuss your individual circumstances.