How to get a mortgage with no deposit

What is a no deposit mortgage?

A no deposit mortgage, also called a 100% mortgage or 0 deposit mortgage, lets you buy a home without putting down any money upfront. That means the lender covers the full property value, known as a 100% loan-to-value (LTV) mortgage.

These deals are rare, but they can be a lifeline for first-time buyers struggling to save a mortgage deposit.

How much deposit do you usually need to buy a house?

Most lenders ask for at least a 5% deposit, meaning you’d need a 95% mortgage. So, if you're buying a £200,000 home, you’d need to save at least £10,000 upfront.

How do mortgage deposits work?

House deposits are worked out as a percentage of the property's value that you pay for with money you have saved up. You must then borrow the rest as a home loan or mortgage to cover the rest of the purchase price.

Generally, the bigger your deposit, the better interest rates you have available.

The most competitive interest rates are usually for those who have at least a 40% deposit to put down (60% LTV) - so £80,000 for a house worth £200,000.

Can I get a mortgage with 0% deposit?

Although rare in the UK, it's not impossible. Most 100% mortgages disappeared from the market after the 2008 financial crisis, but Skipton Building Society brought them back with a 100% LTV mortgage designed to help renters become first-time buyers.

You’re more likely to get approved for a no deposit mortgage if you have a good credit score, low levels of debt and a regular income. Lenders will also want to see evidence that you can afford your monthly repayments.

Are no deposit mortgages risky?

They can be if house prices started to fall. For example, a 100% mortgage on a property that cost £100,000 would mean you owed £100,000 to your lender. If the property value then dropped to £90,000 it would be worth less than the amount you owe.

If you needed to sell the property, the amount you are likely to get for it would not pay off your mortgage in full and would therefore leave you in debt.

100% mortgages and guarantor mortgages

If you can’t get a 100% mortgage, another option is a guarantor mortgage. This usually involves a family member or close friend who owns their own home agreeing to support your mortgage. They won’t make monthly payments, but they must cover them if you can’t.

There are two common ways a guarantor can offer security:

• Using their home: The lender places a legal charge on your guarantor’s property. If you fall behind on repayments, the lender could recover money from them, or in extreme cases, repossess their home.

• Using their savings: Your guarantor deposits a lump sum into a special savings account with the lender. That money is locked away and can’t be withdrawn until you’ve repaid a certain portion of your mortgage.

While this setup can help you get on the property ladder, it also puts your guarantor’s assets at risk, so it’s a big decision for everyone involved.

Other alternatives to no deposit mortgages

If a no deposit mortgage or 100% mortgage isn’t an option for you, there are still several ways to buy a home with a small deposit — or in some cases, no cash deposit at all. Here are some alternatives worth exploring:

Shared Ownership

Shared Ownership mortgages lets you buy a percentage of a property, usually between 25% and 75%. The rest is owned by your local authority or a housing developer. You’ll pay rent on the share you don’t own, and only need a deposit for your share.

A deposit for a shared ownership mortgage is typically between 5% and 10% of the value of the share you’re buying, not the full purchase price. Here's an example:

If you planned to buy a 50% share of a property worth £300,000, the value of your share would be £150,000. So you’d need £15,000 to put down a 10% deposit or £7,500 for a 5% deposit.

Compare Shared Ownership mortgages

Right to Buy

If you've lived in a council home for more than 3 years you may be able to buy it at a discounted price.

The discount you are given on your home could be as much as 70% depending on how long you've lived there. Some lenders let you use this discount as your deposit.

Here is everything you need to know about the Right to Buy scheme

Help to Buy scheme (Wales only)

Help to Buy mortgages is only available in Wales until September 2026.

It offers a shared equity loan of up to 20% of the property's purchase price, allowing buyers to contribute a minimum 5% deposit and secure a repayment mortgage for the remaining amount. The equity loan is interest-free for the first five years

The scheme is available for properties priced up to £300,000 and is open to both first-time buyers and existing homeowners.

New build developer loans

Some new-build property developers offer loans to cover part or all of your deposit. For example, they might lend you 20% of the property’s value, repayable within a set timeframe (e.g. 15 years).

Just make sure you can afford both the mortgage repayments and the developer loan.

Joint mortgages

Buying a property with someone else means you can save a deposit between you. You'll also usually have a higher joint income, meaning you could split the cost of paying your mortgage.

How joint mortgages work

If you're unsure which route to take or can't find the right deal, consider speaking with a mortgage broker. They can help you explore all available options based on your circumstances.