100% Mortgage Offers In 2025

TMG | 22/05/2025

100% mortgages—where no deposit is required—have made a notable return to the UK housing market in 2025, offering new opportunities for first-time buyers and renters struggling to save for a deposit. Here is what is on the market so far.

April Mortgages

• Eligibility: Available to first-time buyers and home movers with a household income of at least £24,000.

• Loan Details:

  • Borrow up to 100% of the property's value.

  • Fixed interest rates starting at 5.99% for 10- or 15-year terms.

  • Loan amounts between £50,000 and £600,000.

  • Applicable to properties valued between £75,000 and £2 million (£2.5 million in Greater London).

• Features:

  • No deposit or guarantor required.

  • Interest rates automatically decrease as the loan-to-value (LTV) ratio improves.

  • Unlimited overpayments and no early repayment charges for full redemption.

  • Not available for new-build properties or flats.

Gable Mortgages

• Eligibility: Applicants must be at least 23 years old, borrowing a minimum of £125,000.

• Loan Details:

  • 100% mortgages with five-year fixed rates at 5.95% (standard) and 5.65% (new-build).

  • Borrow up to 4.49 times annual income, increasing to 5.5 times for key workers.

• Application Process:

  • Applications must be submitted through a mortgage broker.

Barclays – Right to Buy Scheme

• Eligibility: Tenants purchasing their home under the Right to Buy scheme.

• Loan Details:

  • No deposit required; the Right to Buy discount serves as the deposit.

• Features:

  • Designed to assist council and housing association tenants in becoming homeowners.

This offering provides an accessible route to homeownership for eligible tenants.

⚠️ Key Disadvantages of 100% Mortgages

1. Risk of Negative Equity

Without an initial deposit, you have no equity in your property. If house prices decline, you could end up owing more than your home is worth, making it difficult to sell or remortgage.

2. Higher Interest Rates

Lenders perceive no-deposit mortgages as higher risk, often resulting in higher interest rates compared to mortgages with deposits. This means higher monthly repayments.

3. Limited Mortgage Options

Fewer lenders offer 100% mortgages, limiting your choices. Additionally, these products may come with stricter eligibility criteria and fewer flexible features.

4. Long-Term Financial Commitment

Some 100% mortgage deals require long fixed-rate terms (e.g., 10–15 years), which can be restrictive if your circumstances change.

5. Potential for Higher Overall Costs

Over time, the combination of higher interest rates and lack of initial equity can result in paying more for your home compared to traditional mortgages.