Martin Lewis speaks out over new £0 deposit mortgage deal

It's the first of its kind since the 2008 recession.

The first of its kind since the 2008 recession, the deal launched last week.

MoneySavingExpert.com founder Martin Lewis says it could be a 'sensible' option for some people.

This type of deposit-free mortgage used to be quite common up until the 2008 recession; however, it has now returned to the UK, backed by a Dutch firm that has promised to fix its rates for ten years.

The rates for these mortgages start at 5.99% and are set to last for 10 to 15 years.

With most mortgages, buyers need to put down a deposit of around five to 20%; however with this one the lenders are able to finance all of it.

Lewis says he 'cautiously welcomes' the deal.

April Mortgages, a UK-based subsidiary of the Dutch asset manager DMFCO, has said that there are no restrictions on who can apply for a mortgage, only a household income of at least £24,000 is needed.

Things such as collateral or showing a history of previous rent paid are not required.

Lewis explained: "I've campaigned for years to try and help mortgage prisoners locked in at hideous unaffordable rates, and the spectre of 100% mortgages returning leaves me with mixed feelings.

"Years of property-porn TV shows have spouted the idea that you must buy a house as soon as possible, as big as possible – actually, the real priority is not to overstretch your finances.

"Before the 2007 financial crash, banks would simply throw mortgage loans out to anyone walking past a branch window; now we need to be more careful."

He continued: "So Skipton Building Society's criteria of requiring a good rental track record to prove someone can make mortgage payments is sensible, and so I cautiously welcome it, done carefully, after advice, as an option for some."