No Deposit Mortgage
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What is a No Deposit mortgage?
It’s a long-term fixed rate mortgage that doesn’t require a deposit, so you don’t need to have a lot of cash saved up to buy a house.
April Mortgages launched the No Deposit mortgage in May 2025.
What do you mean by long-term fixed rate?
As of May 2025, April Mortgages is offering the No Deposit mortgage on a ten year or fifteen year fixed rate.
When you have built up some equity and qualify for a lower loan-to-value product, they will automatically reduce your interest rate. This will not incur a penalty.
Early repayment charges (ERCs) do apply for otherwise coming out of the deal before the product end date. It could be as much as 9% of your mortgage balance at the time. The ERCs are waived if you are moving house, paying off a lump sum, or paying off the mortgage in full using your own funds.
Who qualifies for a No Deposit mortgage?
It’s for a maximum of two applicants under 70 years old, and you can’t be older than 80 at the end of the mortgage.
The applicants need a combined minimum income of £24,000.
You need to be buying a house with the intention of living in it. New build houses, and flats in general, are not acceptable. The house has to be worth between £75,000 and £2million; if in London, the house can be worth a maximum of £2.5m instead.
You won’t be able to get consent to let in future, either, so you can’t buy it then rent it out later if you still have the mortgage with April.
Can I apply for a No Deposit mortgage with bad credit?
It depends on what the bad credit is.
There can’t be any IVAs, bankruptcies, debt management plans, or previous repossessions.
In addition, you can’t have any CCJs or defaults registered in the last three years. However, if the value was relatively small – less than £500 in total for CCJs or less than £200 in total for defaults – and they have been paid off, April Mortgages can consider them even if registered in the last three years.
You also can’t have any payday loans or secured loan arrears in the past 36 months, or unsecured arrears in the past twelve months.
Why The Mortgage Store Chorley?
Exclusive rates you won’t get directly from lenders
A dedicated point of contact from initial enquiry right through to completion and beyond
Appointments seven days a week, to best suit your schedule
Ongoing rate monitoring until completion as standard
Unsure if you can get a mortgage?
Contact us now for a no-obligation chat.
Can I apply if I’m self-employed?
Yes, but you need to have been trading for at least two full financial years – that means tax years, April 6th to the following April 5th.
Lenders will look at your tax calculations and tax year overviews to verify your income. For limited company directors, we can look at salary and dividends, or salary and share of net profits after corporation tax if you are a 100% shareholder.
You still need to meet the minimum income threshold of £24,000. April Mortgages will take the lower of your most recent year’s income or an average of the last two years.
How much can I borrow?
It’s a maximum of 4.49x your income. This will likely be reduced if you have any dependents or outstanding finance.
What income can be used to meet the £24,000 threshold?
Income from employment is acceptable, namely your basic salary and 80% of variable income like bonus, overtime, and commission. Variable income will be capped at 50% of your basic salary, however.
For self-employed people, April will take the lower of your latest year’s figures or an average of the last two years. You need to have been trading for at least two years.
Other income such as occupational, state, or private pensions can be used, too, as well as some benefit income if it is consistent and continuing, and court-mandated payments like maintenance. Benefit income cannot be the only source of income.
What documents do I need to provide?
The standard documents needed are proof of ID and address, income verification, and bank statements.
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What fees are involved?
The lender charges at £195 non-refundable application fee and a £995 completion fee.
The first valuation is free for properties worth up to £1m. For any subsequent valuations, e.g. if you change property during the application, a fee would apply. The fee payable depends on the value of the property. Remember, a valuation is not the same as a survey, so you might want to pay for an independent surveyor to go round, too.
You’ll also have legal fees to pay.
What are the risks of a No Deposit mortgage?
There is a risk of being in negative equity; that’s when you owe the bank more than the house is worth. This can happen if house prices drop, especially if it occurs shortly after you move in, when you haven’t had sufficient time to repay much of the mortgage.
If you were in negative equity, you wouldn’t be able to remortgage to another lender. You would also be out of pocket if you sold as you would have to find additional funds to pay back the full amount you owe the bank.
Can I move to another lender in the future?
Yes, once you have enough equity to be accepted by other lenders. If you are remortgaging during the fixed rate period, there will be an Early Repayment Charge to pay, however.
Pros and cons of a No Deposit mortgage
Pros
- No deposit required!
- No penalty to pay for taking out a new mortgage if you move house
- Unlimited overpayments
- Provides long-term stability
- Automatic rate changes as equity is built up
Cons
- Only one lender currently offering this product, so it may be withdrawn at short notice
- Risk of being ‘trapped’ in negative equity
- Only available on a long-term fixed rate, with penalties to pay for refinancing early
How can The Mortgage Store Chorley help with No Deposit mortgages?
At The Mortgage Store Chorley, we know how tough it’s been for people trying to get on the property ladder without a big deposit – and that’s why we’re genuinely excited about this new No Deposit mortgage from April Mortgages. If you’ve been stuck renting or struggling to save while watching house prices climb, this could be a real game-changer.
We’re here to make it simple. No jargon, no pressure – just a friendly chat about whether this kind of mortgage could work for you. We’ll walk you through everything, answer your questions (even the ones you think are silly – they’re not), and help you figure out the best way forward. If this is the opportunity you’ve been waiting for, let’s grab a brew and talk about it.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE