100% Mortgage Guide – Buying a home without a deposit can feel impossible, especially when rent, bills, and everyday costs make saving difficult. A 100% mortgage may help some buyers purchase a property without using a cash deposit.
A 100% mortgage is also known as a no-deposit mortgage or 100% loan-to-value mortgage. It allows you to borrow the full purchase price of a property, subject to lender criteria.
These mortgages are not available to everyone. Lenders usually apply strict affordability checks, credit checks, income assessments, and property rules. Some products may also require family support, such as using savings as collateral.
If you are unsure whether a no deposit mortgage could suit your situation, you can find a mortgage adviser near you through Connect Experts.
What is a 100% Mortgage?
A 100% mortgage is a home loan in which the lender allows you to borrow the full value of the property, meaning you do not need to provide a cash deposit.
For example, if you buy a property for £250,000, a 100% mortgage could allow you to borrow the full £250,000. This is different from a 95% mortgage, where you would usually need a 5% deposit.
A 100% mortgage may be suitable for some renters and first-time buyers who can afford monthly repayments but have struggled to save a deposit.
Who is this 100% Mortgage Guide for?
This 100% Mortgage Guide is designed for:
- First-time buyers with little or no deposit
- Renters with a strong record of paying rent on time
- Buyers with stable income but limited savings
- Applicants with good credit conduct
- Buyers who may have family support available
- People comparing 100% mortgages against 95% mortgages
- Borrowers who want to understand the risks before applying
How Does a 100% Mortgage Work?
A 100% mortgage allows the buyer to borrow the full purchase price of the property. Because there is no deposit, the lender takes on more risk. This is why criteria are usually stricter than for lower loan-to-value mortgages.
Lenders may reduce their risk in different ways. This could include:
- Requiring a strong rental payment history
- Checking income and spending in detail
- Asking for a family member to place savings in a linked account
- Using a guarantor or family-assisted structure
- Limiting the type, value, or location of the property
- Applying stricter credit score requirements
- Setting limits on the maximum loan size
The exact rules depend on the lender and product. A whole-of-market mortgage broker may help you compare whether a 100% mortgage, 95% mortgage, or another option is more suitable.
Types of 100% mortgage
1. Rental Track Record Mortgage
A rental-track-record mortgage is designed for renters who have consistently paid rent. Some lenders may use rental history as part of the affordability assessment.
This type of mortgage may suit someone who:
- Has paid rent on time for a sustained period
- Has no deposit or a very small deposit
- Has stable income
- Has a clean or strong recent credit history
- Wants to move from renting to owning
This does not mean rent automatically proves mortgage affordability. Lenders still assess income, spending, credit history, debts, and the property.
2. Family-assisted Mortgage
A family-assisted mortgage allows a family member to support the application, often by placing savings into a linked savings account for a set period.
This may help the buyer access a mortgage without providing their own deposit. The family member’s savings are not usually used as a gift deposit, but they may be held as security.
This type of mortgage may suit buyers who have family support but do not want their family to give money away permanently.
3. Guarantor Mortgage
A guarantor mortgage involves another person, usually a close family member, supporting the mortgage. If the borrower cannot make repayments, the guarantor may become responsible.
This can create serious financial risk for the guarantor. It is important that both borrower and guarantor understand the commitment before proceeding.
4. No Deposit Fixed-rate Mortgage
Some lenders may offer no-deposit mortgage products with longer fixed-rate periods. These can provide payment certainty, but they may also come with higher interest rates, longer commitments, or stricter conditions.
You should always compare the interest rate, product fees, early repayment rules, affordability, and long-term suitability before applying.
Which Lenders Offer 100% Mortgages?
Only a limited number of lenders offer 100% mortgage or no deposit mortgage products. Product availability can change, and lender criteria can be updated at short notice.
Examples of lenders that have offered no deposit or family-assisted mortgage options include:
| Lender | Example product type | How it may work |
|---|---|---|
| Skipton Building Society | Track Record Mortgage | May consider renters with a strong rent payment history |
| Barclays | Family Springboard Mortgage | Family savings may be held in a linked account as security |
| Lloyds Bank | Lend a Hand Mortgage | Family savings may support the buyer’s application |
| April Mortgages | No Deposit Mortgage | May offer 100% loan-to-value options subject to criteria |
This table is for guidance only. It is not a recommendation and does not confirm eligibility. Lender criteria, rates, fees, and availability may change.
A mortgage adviser can check current product options and explain which lenders may consider your circumstances.
Can First-Time Buyers Get a 100% Mortgage?
Yes, some first-time buyers may be able to get a 100% mortgage, but approval is not guaranteed.
Lenders usually want to see that the applicant can afford the mortgage now and in the future. They may assess:
- Income
- Employment status
- Spending habits
- Existing debts
- Credit history
- Rental payment history
- Bank statements
- Household costs
- Property type
- Loan size
- Future affordability
A first-time buyer with strong income, good credit, and a clean rental history may have more options than someone with recent missed payments or unstable income.
If you are self-employed, you may need extra evidence of income. Read the Self-Employed Mortgage Guide for more details.
Can You Get a 100% Mortgage with Bad Credit?
A 100% mortgage with bad credit can be difficult. Because the lender is offering the full property value, they usually want a strong credit profile.
Recent missed payments, defaults, County Court Judgments, payday loans, debt arrangements, or bankruptcy may reduce your options. Some applicants may need to improve their credit position or consider a lower loan-to-value mortgage with a deposit.
If you have credit problems, read the Adverse Credit Mortgage Guide before applying.
You can also search for adverse-credit mortgage brokers who understand specialist lenders’ criteria.
What are The Requirements for a 100% Mortgage?
Strong affordability
The lender must be satisfied that repayments are affordable. This includes your income, regular spending, household bills, debts, dependants, and financial commitments.
Use the Mortgage Affordability Guide to understand how lenders may assess borrowing.
Stable income
Applicants usually need reliable income. This may include employment income, self-employed income, contractor income, or other acceptable income sources.
The lender may ask for payslips, accounts, tax calculations, bank statements, employment contracts, or other evidence.
Good credit conduct
Most no deposit mortgage lenders prefer strong recent credit conduct. They may review missed payments, credit use, defaults, CCJs, and recent applications for c
Evidence of rent payments
Some no deposit mortgage products are designed for renters. These may require proof that rent has been paid consistently and on time.
Family support
Some 100% mortgage options need family support. This could involve a family member placing savings into a linked account or acting as a guarantor.
Suitable property
The property must meet lender criteria. Some lenders may restrict unusual construction types, flats above commercial premises, high-rise buildings, new builds, or properties requiring major work.
Costs to Budget for, Even Without a Deposit
A 100% mortgage may remove the need for a deposit, but it does not remove the other costs of buying a home.
You may still need money for:
- Solicitor or conveyancing fees
- Survey fees
- Valuation fees
- Mortgage broker fees, where applicable
- Moving costs
- Buildings insurance
- Initial repairs or furniture
- Stamp Duty Land Tax, where applicable
- Emergency savings after completion
First-time buyers in England and Northern Ireland may qualify for Stamp Duty Land Tax relief, but the amount depends on the purchase price and current rules. Always check current tax guidance before budgeting.
Example Cost Checklist
| Cost | Why it matters |
| Legal fees | Covers conveyancing and legal work |
| Survey | Helps assess the condition of the property |
| Valuation | Required by the lender to assess property security |
| Broker fee | Some advisers charge a fee for arranging the mortgage |
| Stamp duty | May apply depending on price, buyer status, and location |
| Moving costs | Includes removals, storage, and setup costs |
| Emergency fund | Helps protect against unexpected repairs or income changes |
Benefits of a 100% Mortgage
A 100% mortgage may offer several benefits for the right borrower.
You may not need a cash deposit
This is the main benefit. It may help buyers who can afford monthly repayments but have struggled to save a deposit.
You may buy sooner
If property prices are rising faster than you can save, a no-deposit mortgage may help you enter the market earlier.
Rent history may support your application
Some products recognise a strong rental payment record, which may help renters show financial discipline.
Family can support without gifting money
Family-assisted products may allow relatives to help without permanently giving away a deposit.
It may suit buyers with stable finances
A buyer with strong income, controlled spending, and good credit may be better placed to manage a no-deposit mortgage responsibly.
Risks of a 100% Mortgage
A 100% mortgage also carries important risks.
Negative equity
Negative equity happens when your property becomes worth less than the mortgage secured against it.
For example, if you buy a property for £250,000 with a 100% mortgage and the value falls to £235,000, you may owe more than the property is worth.
This can make moving home or remortgaging more difficult.
Higher interest rates
No deposit mortgages may have higher interest rates than mortgages with a larger deposit. This can increase monthly repayments and total interest paid.
Fewer lender options
Only a small number of lenders offer 100% mortgages. This can limit choice and may make approval more difficult.
Strict affordability checks
Because the lender is taking more risk, affordability checks may be detailed and strict.
Family risk
If family savings or a guarantor are used, your mortgage could affect someone else’s finances.
Limited remortgage options
If property values fall or you have not repaid much of the mortgage, you may have fewer options when your deal ends.
If your mortgage rate is ending soon, read “Rate Change: Is Your Mortgage Interest Rate Ending Soon?“ to understand why early planning matters.
100% Mortgage vs 95% Mortgage
A 100% mortgage is not always the best option. A 95% mortgage may give you more lender choice if you can save a 5% deposit.
| Feature | 100% mortgage | 95% mortgage |
| Deposit needed | Usually none | Usually 5% |
| Lender choice | Limited | Wider |
| Interest rates | May be higher | Often more competitive |
| Negative equity risk | Higher | Lower than 100% LTV |
| Family support | Often needed for some products | Not always needed |
| Affordability checks | Strict | Still strict, but more options may exist |
If you are unsure which route fits your circumstances, compare options with a residential mortgage adviser.
Alternatives to a 100% Mortgage
A 100% mortgage is only one route. Depending on your circumstances, alternatives may include:
- 95% mortgage: A 95% mortgage usually requires a 5% deposit. It may offer more lender choice than a 100% mortgage.
- Family gift deposit: A family member may be able to gift a deposit. Lenders normally need evidence that the money is a genuine gift and not a loan.
- Family-assisted mortgage: Family savings may be used as security instead of being gifted.
- Shared ownership: You may be able to buy a share of a property and pay rent on the remaining share. This can reduce the deposit needed, but the structure and costs should be reviewed carefully.
- Saving for longer: Waiting may give you access to better rates and more lender options, although this depends on property prices, rent, income, and your personal plans.
- Buying a lower-priced property: A lower purchase price may make the deposit and affordability assessment easier.
- Improving affordability first: Reducing debts, improving your credit profile, or increasing income may improve your mortgage options.
You can explore more topics in the Mortgage Guides section.
Mythbusters: 100% Mortgages
Myth 1: Anyone can get a 100% mortgage
False. These products are limited and subject to strict lender criteria.
Myth 2: A no-deposit mortgage means no savings are needed
False. You may still need money for legal fees, surveys, moving costs, insurance, stamp duty, and emergency savings.
Myth 3: Rent payments guarantee approval
False. Rent history may help with some products, but lenders still assess income, credit, spending, and affordability.
Myth 4: Family-assisted mortgages are risk-free
False. Family members may have savings tied up or could face financial risk depending on the product.
Myth 5: 100% mortgages always lead to problems
False. They can work for the right borrower, but the risks must be understood before applying.
Myth 6: The lowest monthly payment is always best
False. Fees, rate type, fixed period, early repayment rules, and long-term suitability also matter.
How to Improve Your Chances of Getting a 100% Mortgage
Before applying, it may help to:
- Check your credit reports
- Avoid taking out new credit
- Reduce unsecured debt where possible
- Keep rent payments up to date
- Maintain stable employment or income
- Prepare bank statements
- Keep spending clear and controlled
- Save for non-deposit costs
- Gather proof of income
- Speak with a mortgage adviser before making applications
Multiple failed applications can affect your credit profile. It is usually better to understand the lender’s criteria before applying.
Use Connect Experts to find mortgage advisers across the UK by location, language, gender, and mortgage expertise.
When a 100% Mortgage May be Suitable
A 100% mortgage may be suitable if:
- You have little or no deposit
- Your rent has been paid on time
- Your income is stable
- Your credit history is strong
- You can afford repayments comfortably
- You understand the risk of negative equity
- You have money set aside for buying costs
- You plan to stay in the property long enough to reduce risk
- You have family support, where required
When a 100% mortgage may not be suitable
A 100% mortgage may not be suitable if:
- Your income is unstable
- Your credit history has recent problems
- You may need to move again soon
- You have no emergency savings
- You are stretching affordability too far
- You are relying on future house price growth
- You do not understand the family risks
- You could save a deposit and access better options
A mortgage adviser can explain the pros and cons based on your circumstances. You can start with the Find Your Mortgage Broker page.
Why use Connect Experts?
Connect Experts helps you find mortgage advisers across the UK. You can search by:
- Location
- Mortgage expertise
- Language
- Gender
- Adviser profile
- Specialist area
A 100% mortgage can help some buyers purchase a home without a deposit, but it is not suitable for everyone. The right decision depends on your income, credit profile, rent history, family support, buying costs, and long-term plans.
Before applying, compare your options and understand the risks.
Use Connect Experts to find a mortgage adviser who can review your circumstances and explain whether a 100% mortgage, 95% mortgage, or another route may be suitable.
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FAQ: 100% Mortgage Guide
| Question | Answer |
|---|---|
| What is a 100% mortgage? | A 100% mortgage is a mortgage where the lender may allow you to borrow the full purchase price of the property. This means you do not need to provide a cash deposit, subject to lender criteria. |
| Is a 100% mortgage the same as a no deposit mortgage? | Yes. A 100% mortgage is often called a no deposit mortgage because the buyer may not need to provide a deposit. |
| Can I get a 100% mortgage in the UK? | Yes, some lenders offer 100% mortgage options in the UK, but they are limited. Approval depends on affordability, credit history, income, property type, and lender criteria. |
| Who can apply for a 100% mortgage? | These mortgages are often aimed at first-time buyers, renters with strong payment histories, and borrowers with stable income. Some products may need family support. |
| Do I need good credit for a 100% mortgage? | Usually, yes. Because there is no deposit, lenders often expect strong credit conduct and clear affordability. |
| Can renters get a 100% mortgage? | Some lenders offer products aimed at renters who can show a strong history of paying rent on time. Rent history may help, but it does not guarantee approval. |
| Do I need family support for a 100% mortgage? | Not always. Some no deposit mortgage products may not need family support, while others require family savings or a guarantor. |
| What is the risk of a 100% mortgage? | The main risk is negative equity. This means the property becomes worth less than the mortgage owed. Other risks include higher rates, limited lender choice, and stricter affordability checks. |
| Is a 100% mortgage better than a 95% mortgage? | Not always. A 95% mortgage requires a 5% deposit but may give you more lender choice and potentially better rates. The right option depends on your circumstances. |
| Can I remortgage after taking a 100% mortgage? | You may be able to remortgage later, but your options depend on property value, mortgage balance, credit profile, income, and lender criteria at the time. |
| Can I get a 100% mortgage if I am self-employed? | It may be possible, but self-employed applicants usually need to prove income clearly. Lenders may ask for accounts, tax calculations, bank statements, or other income evidence. |
| Can I get a 100% mortgage with bad credit? | It can be difficult. Most 100% mortgage lenders prefer strong credit history. If you have adverse credit, speak with a specialist adviser before applying. |
| Are 100% mortgage rates higher? | They can be. No deposit mortgages may carry higher rates than mortgages with larger deposits because the lender takes more risk. |
| Do I still need savings if I do not need a deposit? | Yes. You may still need savings for legal fees, surveys, moving costs, insurance, stamp duty where applicable, and emergency expenses. |
| How do I find a 100% mortgage adviser? | You can use Connect Experts to find a mortgage adviser by location, language, gender, and mortgage expertise. Start with Find a mortgage adviser near you. |
Important Information
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or company you choose.
We are an FCA-approved broker network and not a lender. Advisers may have access to a range of lenders. If a lender is introduced, commission may be received after completion. The commission amount may vary by lender and product, but it should not affect the amount you pay under your credit agreement.
A fee may be payable for arranging your mortgage. Your adviser will confirm the amount before you choose to proceed.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.