What is a no deposit mortgage?
A no deposit mortgage is when you borrow the whole value of the property's value, without putting up a deposit. These are often also known as “100% mortgages”.
Can you get no deposit mortgage?
Although rare now, it is still possible to get mortgages for 100% of your house's value. In most cases, no deposit mortgages are usually only available if you're an existing customer of the lender or have a guarantor.
The guarantor can either be a friend or family member who is willing to put his own home or savings at risk, in the event that you default on your mortgage.
How do no deposit mortgages work?
Every mortgage has a loan to value (LTV) ratio, which is the percentage of your home's value that has been purchased with a mortgage as opposed to any money you supply.
This could be in the form of a deposit you have saved or equity from your current home – in other words the amount of money you would get after you sold your home and paid back your current mortgage.
100% LTV means the mortgage covers the whole amount. For example, if your house costs £180,000, you would borrow the full £180,000 through a 100% mortgage.
How to compare 100% mortgages
Use this comparison to find a no deposit mortgage if you have no equity in your home because its value is the same as the amount you owe. You could use a 0 deposit mortgage if:
Can you get a mortgage with no deposit for your first home?
The only 100% mortgages you can get as a first time buyer in the UK is a guarantor mortgage. You can only get one of these if a parent or someone else is named on your mortgage to cover any payments you miss.
Most of the deals in this comparison are not guarantor mortgages, but you can find them and other deals designed to help you get on the property ladder by using our first time buyer mortgage comparison.
Here are all your options for getting a mortgage without a deposit
Can you get mortgages for more than 100% LTV?
Yes, but only if you are an existing borrower getting a remortgage on your current property.
For example, if your house has gone down in value, you could owe more on your mortgage than your house is worth. This is called negative equity.
If your home is now valued at £150,000 but you owe £180,000 on your mortgage, you need a 120% LTV deal if you get a remortgage.
Here is what to do if you are in negative equity but want to sell