Can You Really Buy a Home with No Deposit?
For many would-be homeowners, saving for a deposit is the biggest hurdle to getting on the property ladder. But what if you didn’t need one at all? That’s where 100% mortgages come in. These types of loans are designed to help people—especially first-time buyers—purchase a home without needing to put down any upfront deposit.
In this post, we’ll explore what 100% mortgages are, who they’re for, how they work, and whether they’re the right choice for you in today’s market.
What is a 100% Mortgage?
A 100% mortgage is exactly what it sounds like: a mortgage loan that covers the full purchase price of a property. In other words, you don’t need to contribute any deposit from your own savings.
Traditionally, most lenders require at least a 5% deposit to reduce the lender’s risk. But with a 100% mortgage, you’re borrowing the entire value of the home—making it possible to buy without saving thousands first.
These mortgages are rare and often come with stricter criteria. However, in recent years, some lenders have reintroduced 100% mortgage products, largely aimed at helping renters and first-time buyers take their first step onto the property ladder.
Who Offers 100% Mortgages in the UK?
A limited number of UK lenders currently offer 100% mortgages, usually through specialist schemes or under specific conditions. For example, some of the most well-known lenders offering these products may require a guarantor or a family member to provide financial backing.
Lenders such as Skipton Building Society have launched track record-based 100% mortgages, where the focus is on your history of paying rent reliably—rather than needing a deposit. This can be a great option for renters who have been managing monthly rent that’s equal to or higher than a potential mortgage repayment.
Types of 100% Mortgages
Not all 100% mortgages are the same. Here are the main types you might come across:
1. Guarantor Mortgages
With a guarantor mortgage, a family member (usually a parent) agrees to guarantee your repayments. If you fall behind, the guarantor is legally responsible for covering the shortfall. In many cases, they will need to offer their own savings or property as collateral.
2. Family Deposit Mortgages
This involves a relative placing a certain amount of money (e.g. 10%) into a linked savings account with the lender. The funds are held for a set period (usually five years) and returned if you meet all repayment terms.
3. Rent-Based 100% Mortgages
Some lenders now offer products based on your rental history. If you’ve consistently paid rent for 12–24 months, you may qualify for a mortgage of the same monthly amount—even without a deposit.
Pros and Cons of a 100% Mortgage
Before diving into a zero-deposit mortgage, it’s important to understand the advantages and potential risks.
✅ Advantages:
- No deposit needed: You can buy a home sooner without needing to save tens of thousands.
- Great for renters: If you’re already paying high rent, switching to a mortgage may reduce your monthly outgoings.
- Support for first-time buyers: These schemes are often designed to help young buyers and families get on the ladder.
❌ Disadvantages:
- Higher risk of negative equity: If property prices fall, you could owe more than your home is worth.
- Limited availability: Not all lenders offer 100% mortgages, and eligibility is often strict.
- Interest rates may be higher: Because there’s more risk to the lender, rates can be less competitive.
- Need for a guarantor or family support: Many options rely on parents or relatives stepping in to help.
Are You Eligible for a 100% Mortgage?
Eligibility criteria vary depending on the lender and mortgage type. However, common requirements include:
- A strong credit history
- A stable income and employment record
- Proof of 12–24 months of rent payments (for rent-based products)
- A willing guarantor or family support for other types
- Limited existing debts or financial commitments
Keep in mind, even if you meet the basic criteria, lenders will conduct affordability assessments to ensure you can manage repayments now and in the future—especially if interest rates rise.
Alternatives to a 100% Mortgage
If you don’t qualify for a 100% mortgage, there are several low-deposit alternatives worth considering:
- 5% deposit mortgages: Available through the government-backed Mortgage Guarantee Scheme.
- Shared Ownership: Buy a percentage of a home and pay rent on the rest.
- Help to Buy ISA or Lifetime ISA (if you already have one): Government bonuses can boost your savings.
- Family gifted deposit: Parents or relatives provide funds for a deposit, rather than acting as guarantors.
How a Mortgage Broker Can Help
100% mortgages are complex and often come with fine print that needs expert interpretation. That’s where a specialist mortgage broker comes in.
At Mortgage Pro Sussex, we stay up to date with the latest mortgage products, including niche options like 100% loans. We can:
- Check your eligibility
- Compare deals from different lenders
- Explain the risks in plain English
- Help you apply and boost your chances of approval
- Recommend whether a 100% mortgage really is your best option
We take the stress out of finding the right mortgage and offer free initial consultations to explore your options—whether you’re a first-time buyer or simply want to move out of renting.
Final Thoughts
100% mortgages are making a comeback—and for the right borrower, they can be a brilliant solution to the deposit dilemma. But they’re not for everyone. There are risks involved, and you’ll need to pass stricter checks than traditional mortgage applications.
If you’re serious about buying a home but struggling with a deposit, speak to a professional mortgage adviser. We’ll help you understand the landscape and find the best path forward.
Ready to Get Started?
Contact Mortgage Pro Sussex today to discuss your options and see whether a 100% mortgage could work for you.
📞 Call: 01903 951200
📧 Email: richard@mortgageprosussex.co.uk
🌐 Website: www.mortgageprosussex.co.uk