New £0 deposit mortgage for UK home consumers launched | UK | News | EUROtoday

UK home consumers now have entry to a brand new 100% mortgage deal, one of many first of its variety because the world monetary disaster. Netherlands-based April Mortgages launched the product within the UK this week, requiring debtors to repair their rate of interest, which begins at 5.99%, for 10 or 15 years.

No deposit is required and the Dutch agency has made the deal out there to first-time consumers and movers with a family revenue of at the least £24,000. April Mortgages stated on their web site that saving for a deposit can really feel “impossible”, main them to do “something different” with the brand new deal.

The firm added: “April’s No Deposit mortgage is designed to help you get the keys without years of saving. No gimmicks. No strings. Just a modern mortgage with simple rules, long-term certainty, and flexibility built-in.”

They stated the corporate lends “responsibly” to folks with “strong credit and stable income” and saved issues “fair, safe and certain for everyone”.

Deposit free loans had made up greater than 6% of latest mortgages simply earlier than the monetary crash, however these days counts for round 0.3% of the entire as banks are extra cautious of lending, The Times experiences.

Before the 2008 crash, mortgages requiring no deposit weren’t tough to return by and had been supplied by main lenders together with HSBC, Lloyds and NatWest.

Some lenders might even supply as much as 125% of a property’s worth, with the idea that home costs would steadily rise over the course of a deal.

Among the lenders providing these packages was Northern Rock, which collapsed in September 2007.

Recently, the 100% mortgages on supply have been these into which oldsters should put cash right into a financial savings account as collateral, or these for which first-time consumers should exhibit a historical past of paying lease to qualify for.

In distinction, April Mortgages stated there have been no restrictions on who might apply for its 100% deal.

Nick Mendes, of the mortgage firm John Charcol, instructed The Times: “This offers a much-needed alternative for financially responsible renters who have consistently managed their payments but have been locked out of the housing market.”

However, James Daley from shopper group fairer finance instructed the newspaper: “I understand people are impatient to get on the property ladder and rising prices have kept it out of reach for many. But I am not convinced that the answer is to lend even more money to people and to waive the need for a deposit. People who have no equity have fewer choices and are much more vulnerable to falling into negative equity and finding themselves trapped.”