Increase in zero-deposit mortgages in 2024

There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.

The zero-deposit mortgages are designed to let borrowers take out a mortgage without a deposit and are aimed at renters, or those finding it difficult to save for a down payment.

As with any product, there are pros and cons of a zero-deposit mortgage, these include:

Advantages of 100% mortgages

  • You don't need to put down a deposit to buy your home
  • You may be able to get onto the property ladder sooner than anticipated thanks to no down payment
  • Mortgage repayments could be cheaper than rental payments

Disadvantages of 100% mortgages

  • You may be in for higher interest rates than if you were to put down a deposit as you are seen as ‘higher-risk’ to the lender
  • Remortgaging in the future – if the house falls in value, you may be required to pay remortgage fees
  • At risk of negative equity

For more information on 100% mortgages click here. Alternatively, give our experts a call and they can help you choose a product best suited to you: 01628 507477 or email: team@mortgagerequired.com

Recent posts

Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break

The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.

Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.

Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.

Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.

Data shows landlords could miss out on green mortgages due to expired energy performance certificates.

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.