100% Mortgage Guide | An Insider’s Guide to Getting on the Property Ladder with No Deposit. Dreaming of owning your own home but worried about saving up for a deposit? You’re not alone. For many first-time buyers, pulling together even a 5% deposit can feel like an impossible hurdle especially with rising rents, higher living costs, and stagnant wages. That’s where 100% mortgages come in.
In this guide, we’ll walk you through everything you need to know about no-deposit mortgages, how they work, who they’re designed for, and the pros and cons you should weigh up before applying. Whether you’re a first-time buyer eager to get a foot on the ladder, someone struggling with deposit savings, or simply curious about your options, this insider’s guide will give you a clear, jargon-free breakdown.
We’ll cover:
What a 100% mortgage actually is (and how it differs from standard mortgages)
The eligibility criteria lenders look for
The risks and rewards of buying without a deposit
Alternatives if a no-deposit mortgage isn’t the right fit for you
By the end, you’ll know whether this could be the stepping stone you need to turn your dream of homeownership into reality.
What is a 100% Mortgage?
A 100% mortgage is a type of home loan that allows you to borrow the full purchase price of a property, meaning you don’t need to put down a deposit.
Traditionally, most lenders require a deposit of at least 5–10%, but with 100% mortgages, this hurdle is removed, helping first-time buyers or those struggling to save get on the property ladder faster.
Who Are 100% Mortgages For?
100% mortgages are suitable for people who:
Have no deposit saved
Have a strong and stable income
Have a good credit history
May have family support (e.g. parents willing to help)
Are first-time buyers or renters with a clean payment history
How Do 100% Mortgages Work?
100% mortgages usually require additional support or security for the lender. This could be through a guarantor, a savings lock from a family member, or proof of strong financial stability.
Here are the main types:
| Type of 100% Mortgage | How it Works |
|---|---|
| Guarantor Mortgage | A family member guarantees the loan, agreeing to cover repayments if needed |
| Family Security Mortgage | Family member puts savings in a linked account as security |
| Rental Track Record Scheme | Lenders use proof of rental payments instead of deposit (e.g. Skipton) |
What Are the Requirements?
Although no deposit is needed, lenders will still assess your ability to repay the mortgage.
| Requirement | What Lenders Look For |
|---|---|
| Credit Score | Usually good to excellent (check via Experian or Equifax) |
| Income Stability | Steady income with at least 6–12 months of employment |
| Affordability Checks | Can you afford repayments with your current income & expenses? |
| Proof of Rental Payments | For “track record” mortgages – consistent rent paid on time |
| Family Support (if required) | Willingness to act as guarantor or provide savings as security |
Which Lenders Offer 100% Mortgages?
| Lender | Mortgage Name | Criteria |
|---|---|---|
| Skipton BS | Track Record Mortgage | Must have 12 months of rent paid on time; no family support required |
| Barclays | Family Springboard Mortgage | Family deposits 10% into a linked savings account for 5 years |
| Lloyds | Lend a Hand Mortgage | Family savings used as security; borrower gets 100% of purchase price |
| Generation Home | Income Boost / Deposit Boost | Allows shared ownership with family, including deposit assistance |
| April Mortgages | 100% Fixed Rate Mortgage | Designed for first-time buyers; requires rental history & strong affordability; no guarantor or family deposit needed |
✅ Note: April Mortgages’ 100% deal is aimed at first-time buyers with strong rental payment history and stable income. It does not require family savings or a guarantor, making it another valuable option for renters ready to buy.
Note: Lender criteria can change – always check with a mortgage broker before applying.
Mythbusters: 100% Mortgages
| Myth | Truth |
|---|---|
| “You don’t need good credit” | FALSE – Good credit is essential for most 100% mortgage approvals |
| “You can get a 100% mortgage easily” | FALSE – They’re rare and come with strict conditions |
| “Anyone can be a guarantor” | FALSE – Guarantors need strong income and/or home equity |
| “You don’t need any savings at all” | PARTLY TRUE – No deposit needed, but fees (legal, valuation, etc.) still apply |
| “These mortgages are risky and always end badly” | FALSE – If managed responsibly, they can be a great route to ownership |
Pros & Cons of 100% Mortgages
| Pros | Cons |
|---|---|
| No deposit required | Higher interest rates in some cases |
| Ideal for renters with no savings | Risk of negative equity if house prices fall |
| Allows an earlier step onto the property ladder | Limited lender options |
| Family support helps bypass deposit hurdles | Family members’ savings may be locked for years |
| Some products need no guarantor or savings | Stricter affordability checks |
Costs to Budget For (Even with No Deposit)
| Item | Typical Cost (Estimate) |
|---|---|
| Legal fees (conveyancing) | £800 – £1,500 |
| Valuation fees | £0 – £500 (often included by lender) |
| Mortgage broker fee (if used) | £0 – £500 |
| Stamp duty | Usually £0 for first-time buyers under £425,000 |
| Moving costs | £300 – £1,000 |
| Emergency savings | Recommended (even if not required) |
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FAQ: 100% Mortgage Guide
| Question | Answer |
|---|---|
| What is a 100% mortgage? | A 100% mortgage is a home loan where you borrow the full value of the property without paying a deposit. These are designed for buyers who can afford monthly repayments but have little or no savings. |
| Who can apply for a 100% mortgage? | Most lenders require applicants to have a strong credit history, steady income, and often a family member acting as a guarantor or offering equity as security. |
| Do 100% mortgages still exist in the UK? | Yes, but they are limited. Some specialist lenders offer 100% mortgages, usually through guarantor or family-assisted schemes. |
| What is a guarantor mortgage? | It is a type of 100% mortgage where a family member uses their home or savings as security to support your loan. If you cannot make payments, the guarantor becomes responsible. |
| Are 100% mortgages riskier? | They can be. Because there is no deposit, you start with no equity, meaning if property values fall, you could owe more than your home is worth. This is called negative equity. |
| Can first-time buyers get a 100% mortgage? | Yes, some lenders offer these mortgages to first-time buyers, but conditions are stricter. You may need a guarantor or a savings-linked account to qualify. |
| What are the main alternatives to a 100% mortgage? | Alternatives include 95% mortgages, shared ownership, and Help to Buy schemes, which require a small deposit but reduce borrowing risk. |
| How can I improve my chances of approval? | Build a strong credit score, show consistent income, and reduce existing debt. Having a family member willing to act as a guarantor also helps. |
| Can I remortgage a 100% mortgage later? | Yes, once your property gains value or you pay off part of the loan, you can remortgage to a lower loan-to-value product with better rates. |
| Is a 100% mortgage right for me? | It depends on your situation. They are suitable for people with stable finances but limited savings. Speaking with an FCA-authorised mortgage adviser is the best way to understand your options. |