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
Recent posts
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
2 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
7 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
More information
Trusted by
