The emergence of a number of zero-deposit mortgages is giving fresh impetus to first-time buyers after their numbers fell dramatically in the aftermath of the end of the Stamp Duty holiday.

We haven’t seen 100% mortgages like this since 2008.”

Kate Fuller (pictured), business principal at Mortgage Advice Bureau, says: “We haven’t seen 100% mortgages like this since 2008, so to see them finally return really shows how much positivity there is in the property market right now.”

Gable Mortgages is the latest lender to offer a 100% mortgage. Chief executive Justine Le Roux told Introducer Today: “We understand how hard it is for first-time buyers to get onto the property ladder, which is why we have created our zero-deposit mortgage solutions.”

“There is a whole generation of renters out there who are struggling to save to buy and pay their rent at the same time. This has made it significantly harder for first-time buyers, especially key workers get onto the property ladder.”

April Mortgages is another lender offering a 0% deposit deal to those earning over £24,000 and purchasing a home for more than £75,000.

Crucial timing

It comes at a crucial time for the housing market, which has seen a slowdown since Stamp Duty costs rose at the beginning of April. The nil-rate threshold for first-time buyers has been reduced to £300,000 from £425,000, with the maximum qualifying purchase price falling from £625,000 to £500,000.

While 100% mortgages have actually been around since Skipton Building Society reintroduced them in 2023, most have required family guarantors. The newer products have much less restrictive eligibility criteria, making them available to a far wider group of buyers.

As a result, Industry observers believe agents could see a marked increase in the number of first-time buyer enquiries, especially as more and more lenders launch their own 0% deposit products.