18 Jun 2025
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
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