The Return of the 100% Mortgage
22.05.25I mentioned last time that lenders have rediscovered their innovative streak, and the latest product to hit the headlines in a big way is the 100% mortgage—that’s right, the no-deposit mortgage is back!
This time, it is courtesy of the new Dutch lender April Mortgages, which specialises in offering long-term fixed rates at 10 years plus. They already offer products up to six times income, and this is their new marquee offering.
What makes this a bit different is that it is not just for First-Time Buyers. While the income multiples on this product are capped at 4.49 times income, the maximum loan is £600,000, and it is only available on houses, being able to borrow without a deposit has already led to a deluge of enquiries.
It will not be suitable for everyone, but it is a welcome addition to the market. Though it is not available to all brokers just yet, Coreco does, of course, have access!
Inflation also returns!
Meanwhile, we saw the expected return of inflation last week, which came in at 3.5% in April, up from the 2.6% reported in March, and slightly above expectations.
Yet again, these movements play havoc with SWAP rates and hence the pricing of mortgages, and, true to form, we have seen a few lenders repricing upwards once more.
There are still a healthy number of mortgage products starting with a 3, with Danske Bank still holding firm at 3.75% on a 2-year fixed and Santander at 3.83% on their 5-year fixed. How long they last remains to be seen, but the good news is that this rise is not expected to be a lengthy one.
It once again reiterates what we always say: trying to wait and play the market often means you end up missing out on the dream property, so swift action is always preferable. A good broker (hello!) will always continue to monitor the market to see if anything better comes in before completion.
I have one client for whom I have already improved their offer four times over the last couple of months. This is not something you get going direct to a bank. We are always here to help.
Best Mortgage Rates
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 3.75% (6.70% APRC) and 5-year fixes from 3.83%, (5.40% APRC), whilst variable discounted rates are around from 4.19%, (5.90% APRC) and variable tracker rates from 4.36% (7.40%).
Those looking at Buy-To-Let can now obtain products from 2.79% (7.70% APRC) for a 2-Year fixed, 4.52%, (7.50% APRC) for a 2-year tracker or 5-year fixes are available from 3.61% (4.00% APRC).
Contact
To speak to one of our friendly, down-to-earth advisers, please call 020 7220 5110 or click here. We look forward to chatting with you.
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Written by Andrew Montlake
Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.
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