Couple from London bought an apartment without a deposit: how they earned £90,000 in a year.

According to The Sun: Sebastian Thomas and Ella Genders, who rent an apartment in London, were upset when they received a letter about a rent increase. Their landlord planned to raise the rent for a one-bedroom apartment in Dalston by £300, which would ultimately be £2300 per month.

Without savings, Sebastian, a property developer, and Ella, a senior fundraiser at a charity, both 31, did not expect to enter the property market. However, a casual conversation with Ella's mother during dinner dramatically changed their lives. Ella's mother mentioned an advertisement for the Track Record mortgage from Skipton that was playing on the radio.

This mortgage offers borrowers 100% of the property value, eliminating the need for a deposit. It also takes into account rental history to determine potential loans.

Although the interest rate of this mortgage is higher than traditional five-year loans, it is fixed for five years, meaning the rate will remain unchanged during this period.

After consulting with a mortgage advisor, they received confirmation of mortgage eligibility just five days later.

A week after the conversation, the couple made an offer on a one-bedroom apartment with a view of the Regent's Canal in North London. Their offer of £385,000 was accepted in October 2023, despite a short period of competition.

“It felt too good to be true,” said Sebastian.

“We felt incredibly happy as it is very hard to become a homeowner nowadays. It was immensely satisfying to do this without parental support.”

The monthly mortgage payment for their new home was £2000 - the same amount they were paying for rent.

After moving in, the couple spent the next six months renovating the apartment, as it was outdated and had previously been rented for ten years. Sebastian noted: “The kitchen was old, and the bathroom was in very poor condition.”

Despite the risks associated with a 100% mortgage, the couple successfully increased the value of their apartment, helping to avoid negative equity.

“We weren't worried about negative equity, as we always knew we could increase the value of our home,” said Ella.

Future Prospects

Now the couple is ready for a new phase of living, as they learned about a future addition to the family. They sold their apartment for £475,000, making a profit of £90,000.

Sebastian and Ella have already made an offer on a two-bedroom apartment in Clapton for £500,000, planning to put down £25,000 and use the profit to increase the value of the new apartment.

“We would not be in the property market without this mortgage,” noted Ella.

This case confirms that even with a 100% mortgage, it is possible to successfully transition to a new stage in life.

The apartment was outdated before the renovation, but after the update, it became modern and bright.