Responsible Lending

We understand that offering a 100% Loan-to-Value mortgage comes with greater responsibility, and we’ve designed our No Deposit product with that front of mind.

As a responsible lender, April follows the FCA’s Responsible Lending rules and Consumer Duty. Our No Deposit mortgage is carefully structured with clear controls to support credit-worthy borrowers, manage risk, and ensure long-term suitability.

Built-in safeguards include:

• Longer-term fixed rates (10 or 15 years) - shielding customers from short-term rate volatility
• Automatic rate reductions - as the loan is repaid and LTV improves
• Capped LTI at 4.49x - to avoid overextension
• Robust affordability stress testing - ensuring repayments remain manageable, even in adverse conditions
• Strict creditworthiness checks - requiring a strong, recent credit history and stable income

We also provide:

• Clear risk warnings and suitability checks - to help customers fully understand the risks, including potential negative equity
• Guidance on overpayments - giving customers tools to reduce their balance faster
• Dedicated support - for borrowers who experience financial difficulty

These measures ensure our 100% LTV mortgage is offered responsibly, expanding access to homeownership without compromising on prudent lending

Your role in suitability:

We rely on our broker partners to help ensure this product is the right fit. Please continue to:

• Thoroughly assess affordability, now and into the future
• Clearly explain negative equity risks
• Discuss exit strategies, including overpayment options
• Compare alternatives where relevant (for example, saving for a deposit or lower LTV options)
• Document your advice and risk discussions carefully
• Ensure that, although no deposit is required, your client has funds for other fees and charges that will be applicable (for example, SDLT, moving costs, legal fees and valuation fees etc.)

Together, we can support more customers into homeownership: responsibly and with confidence.