Buying With No Deposit. It Exists. Here's the Reality.
100% LTV mortgages are available in limited form in the UK market. The options are fewer, the rates are higher, and the eligibility criteria are tighter — but for the right buyer in the right situation, it can work.
Zero deposit options in the UK
Genuine 100% LTV mortgages — where you borrow the full purchase price without any deposit — are available from a small number of lenders. These are typically aimed at renters who can demonstrate a strong rental payment history as evidence of mortgage affordability.
The main products currently available include track-record mortgages (where your rental history substitutes for a deposit), guarantor mortgages, and family-assisted schemes where a family member provides security via savings or equity rather than gifting cash.
What you need to know
Zero deposit mortgages come with trade-offs. Rates are significantly higher than those available at 10% or 20% LTV — which means higher monthly payments and more interest paid over the term. You start with no equity buffer, so any fall in property values puts you in negative equity.
That said, for buyers who can genuinely afford the monthly payments but cannot save a deposit while also paying rent, this can be a viable route to ownership. We'll show you the numbers honestly so you can decide.
Explore your optionsZero and low deposit options
Track Record Mortgages
Available from a small number of lenders to renters with 12+ months of on-time rental payments. The rental history is used as evidence of mortgage repayment ability in place of a deposit. Income, credit, and employment criteria still apply.
Guarantor Mortgages
A parent or close family member agrees to cover mortgage payments if you can't. This allows you to borrow more or borrow without a deposit. The guarantor's income, credit, and assets are assessed alongside yours. Their home or savings may be at risk if payments aren't maintained.
Family Offset Schemes
Some lenders allow a family member to place savings in a linked account as security — reducing the effective LTV without gifting the money. The family member's savings are released after a set period (typically 3–5 years) if payments are maintained. No deposit required from the buyer.
5% Deposit Mortgages
While not zero deposit, 95% LTV mortgages are far more widely available and offer significantly better rates. If saving a small deposit is possible, even 5% opens considerably more lender options. We'll compare all routes and show you what saving a little longer could save you long-term.
Shared Ownership
Buying a share of a property (typically 25–75%) and paying rent on the remainder. The mortgage is only on your share, which dramatically reduces the deposit required. Not zero deposit, but a lower barrier to entry — and an option worth understanding.
Gifted Deposit
If a family member can gift you a deposit (with no expectation of repayment), most lenders accept this. A gifted deposit letter is required. We help structure and document gifted deposits correctly so lenders accept them without issue.
Zero deposit mortgage FAQs
Yes, in limited form. A small number of lenders offer track-record based 100% LTV mortgages for renters with a strong payment history. Availability, criteria, and rates change frequently. Contact us for a current picture of what's available for your specific situation.
Lenders offering 100% LTV products are understandably risk-conscious, so credit requirements are typically stricter than for standard mortgages. Most require a clean recent credit history — no CCJs, defaults, or missed payments in the past 2–3 years. We'll check your credit position before recommending any lender approach.
It involves real risk — if you can't pay, the guarantor is legally responsible for the mortgage. Depending on the structure, their home or savings could be at risk. We make sure anyone considering a guarantor arrangement fully understands the implications before proceeding. We won't push this option as an easy solution if the underlying affordability isn't there.
It depends on your situation. Saving a 5% deposit unlocks significantly better rates and a much wider lender pool — the long-term cost of a 100% mortgage is higher. But if property prices are rising faster than you can save, there's a genuine argument for moving now. We'll run the numbers for your specific situation and give you an honest answer.
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Important: Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. There may be a fee for mortgage advice ranging from £100 to £750.