A new 100% mortgage product has launched in the UK, sparking interest and speculation among Irish homebuyers. The product, introduced by April Mortgages, allows first-time buyers to borrow the full value of a property without needing a deposit. While this may sound like a dream come true for many struggling to save, it also raises questions about affordability, risk, and whether such a product could—or should—return to the Irish market.
The UK’s new no-deposit mortgage is aimed at renters who have a strong track record of paying rent on time. Applicants must have rented for at least 12 months and be able to demonstrate that their monthly mortgage repayments would not exceed their current rent. The loan is fixed for 10 years, offering long-term stability, and is available for properties up to £500,000. However, it excludes new builds and requires a clean credit history.
This move has reignited debate around 100% mortgages, which were common before the 2008 financial crash but largely disappeared due to the risks they posed to both lenders and borrowers. Critics argue that such loans can leave homeowners vulnerable to negative equity if property prices fall. Supporters, however, see them as a lifeline for renters trapped in a cycle where high rents prevent them from saving for a deposit.
In Ireland, 100% mortgages are currently not available. The Central Bank of Ireland enforces strict lending rules, including a 10% deposit requirement for first-time buyers and a loan-to-income cap of 4 times gross annual income. These rules were introduced to ensure financial stability and prevent a repeat of the housing market crash that followed the Celtic Tiger era.
While Irish lenders do not offer 100% mortgages, there are alternative routes for buyers with limited savings. These include government-backed schemes like the First Home Scheme and the Help to Buy incentive, as well as gifted deposits from family members. Some buyers also explore shared ownership or discounted purchase arrangements, which can reduce the upfront cost of buying a home.
The question now is whether a product like April Mortgages’ 100% loan could—or should—be introduced in Ireland. On one hand, it could help renters transition into homeownership without the burden of saving a large deposit. On the other, it could increase financial risk for both borrowers and banks, especially in a market where housing supply remains tight and prices continue to rise.
Experts in the Irish mortgage sector remain cautious. While the idea of a no-deposit mortgage is attractive, especially for younger buyers, the current regulatory environment makes such products unlikely in the near future. The Central Bank’s focus remains on responsible lending, and any move to reintroduce 100% mortgages would require a significant shift in policy and risk appetite.
