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Getting a mortgage with no deposit might seem like the perfect way to buy a house if you’re struggling to get on the property ladder. For some buyers, it can make buying a house with no deposit possible. But it’s crucial that you understand how they work, what the pitfalls are and what other options are available.
Yes. A small number of UK lenders now offer no deposit mortgages to eligible buyers. These include products such as Skipton Building Society’s Track Record Mortgage, as well as some guarantor mortgages. Most buyers will still need at least a 5% deposit.
KEY INFORMATION
Getting a mortgage with no deposit means the mortgage lender will lend you the entire value of the property. These mortgages are also referred to as Zero Deposit Mortgages, 100% Mortgages and 100% LTV (loan to value) mortgages.
Other types of mortgages that don’t require the buyer to put down a deposit include guarantor mortgages, where a loved one puts up their property or savings as security against the loan, and Right to Buy mortgages, if the lender lets you use your Right to Buy discount as your deposit.
For buyers who are hoping to buy a property without saving a deposit first, these mortgages are the main ways of buying a house with no deposit in the UK.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
No deposit mortgages aren’t available to everyone. Each lender sets its own eligibility criteria, so the requirements vary depending on the mortgage you apply for. However, lenders will usually look at factors such as your income, credit history and ability to afford the repayments.
You may be more likely to qualify if you:
✓ Meet the lender’s affordability checks
✓ Have a good credit history
✓ Have a stable income
✓ Have a strong rental payment history (for products designed for renters)
✓ Have support from a family member if you’re applying for a family-supported mortgage
The current no deposit mortgage options work in different ways. Below, we explain the main types of no deposit mortgage currently available and who they’re designed for.
There are a number of ways to get a mortgage with no deposit including:
Skipton Building Society’s 100% LTV Track Record Mortgage is designed to help renters buy a property without needing a deposit if they have a proven track record of paying rent.
The Skipton 100% mortgage is available at 95%-100% LTV. This means you can take it out with up to a 5% deposit. But there are some strict criteria to meet including:
The lender has also launched a 100% Shared Ownership Track Record mortgage.
Hanley Economic’s 100% mortgage works in a similar way to Skipton’s because it’s designed for people who have a proven history of paying rent.
The 100% Rent to Own mortgage is available as a 5 year fixed rate, with no fees.
Mortgage lender April has launched a 100% mortgage which requires borrowers to fix their interest rate for 10 or 15 years.
If you’re specifically comparing 100% mortgage lenders, rates and eligibility, read our guide to 100% Mortgages.
The best mortgage depends on your individual circumstances. We’ve partnered with Mortgage Advice Bureau, and their award-winning expert advisers will find the right mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Guarantor mortgages can sometimes make buying a house with no deposit possible. Guarantor mortgages may come with slightly different names and have different eligibility criteria, but there are two main types:
Make sure to take independent financial advice before going ahead. Also, read more in our guide Guarantor mortgages explained.
KEY INFORMATION
Metro Bank offers a 95% to 100% Joint Borrower Sole Proprietor (JBSP) mortgage for eligible first-time buyers and home movers. With this mortgage, a parent or other immediate family member joins the mortgage application to boost affordability but doesn’t become a legal owner of the property.
The mortgage is available as a 5-year fixed rate, with no valuation or product fees, and borrowers can apply for up to £675,000, subject to affordability. Income from up to four applicants can be considered.
As with other family-assisted mortgages, both the borrower and joint borrower are legally responsible for the mortgage repayments.
If you’d like to find out whether a JBSP mortgage is right for you, speak to the expert advisers at Mortgage Advice Bureau.
The advantages of taking out a mortgage with no deposit include:
However, there are disadvantages of getting a mortgage with no deposit to consider carefully:
Each 0% deposit mortgage has different criteria, so the best place to start is to speak to a fee-free mortgage broker as they’ll explain your options based on your circumstances. Generally speaking, you’re more likely to get approved for a mortgage with no deposit if you have a good credit score, regular income and low level of debt.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Yes, it’s possible to get a mortgage with no deposit if you’re a first time buyer. But your options will depend on your circumstances so it’s advisable to speak to a fee-free mortgage broker.
Most lenders will offer a maximum of 4.5 times a first time buyer’s annual income. So if you have an annual salary of £40,000, it’s likely that you’ll be able to borrow up to a maximum of £180,000.
To find out more read our guide on How much can I borrow for a mortgage?
There are other ways of buying a house with no deposit or with a very small deposit.
You don’t have to make life’s big financial decisions alone. Get the right IFA for you today with our partners at Unbiased.
When you are looking at how much deposit you need to buy a house, most lenders offer mortgage deals which require at least a 5% deposit to buy a house. A 5% deposit means you’ll need to get a 95% loan to value mortgage.
However, if you have a 10% deposit or more, you can usually access a greater range of mortgage deals and lower mortgage rates, making your monthly payments more affordable.
But many buyers find that raising a deposit of this size takes a long time. Nationwide’s latest Affordability Report found a first time buyer would need to put aside around £320 per month for almost six years to cover a 10% deposit (£23,000) on a typical UK property.
With a no deposit mortgage you don’t need to put down any deposit.
In 2024, the average deposit put down on a first home was £61,090 – around 20% of the property price, according to figures from Halifax.
Yes you can get a mortgage with no deposit. The lender may offer you up to 100% LTV or you may need to take out a guarantor mortgage to be able to get a 0% deposit mortgage.
The type of home you can buy with a 100% mortgage will depend on the lender’s lending criteria. For example, lender April specifies that you cannot take out its 0% deposit mortgage if you’re buying a flat.
Before the 2008 financial crash, 100% mortgages were widely available. In fact, some lenders offered mortgages of up to 125% of the property’s value. However, after the financial crash most of these mortgages were pulled from the market as lenders considered them too risky.
No, there isn’t a zero deposit mortgage government scheme. However, the government-backed Mortgage Guarantee Scheme encourages lenders to offer 95% mortgages. And 5% deposit mortgages are available in the market generally.
Yes, although options are limited. Most buyers need at least a 5% deposit. However, some lenders offer 0% deposit mortgages, and other routes such as guarantor mortgages or family-assisted mortgages can also help people buy a house without saving a deposit first.
Yes. Some specialist student mortgages allow eligible students to borrow up to 100% of the property’s value. These typically involve a parent joining the mortgage as a non-owning joint borrower, and at higher LTVs additional family security may also be required, such as savings or a charge against a parent’s property.
Find out more about how they work and the risks in our guide to Student Mortgages: Can You Get a Mortgage as a Student?
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