Mortgage alert: Renters can now buy a home without a deposit under new deal - 'genuine route onto the ladder'

Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, acknowledged the product addresses a genuine need but urged potential applicants to consider their decision carefully. He said: "Before you get excited, understand what you're signing up for. You'll pay interest on the full purchase price at a higher rate, making monthly payments steeper than if you had a deposit." Mr Karpowicz warned the primary danger lies in negative equity should house prices fall, leaving borrowers trapped with debt exceeding their property's value. He advised comparing the mortgage against Shared Ownership schemes, where even a modest deposit might secure more favourable rates and reduced risk.