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 earlier step onto 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) |
Case Example
Emma, 27, a marketing executive from Manchester, had been renting for 4 years. She wanted to buy her first flat but had no savings for a deposit. With a stable job and strong rental history, she applied for the Skipton Track Record Mortgage.
Her 12-month rent payments proved she could manage repayments. She didn’t need a guarantor or family savings. She was approved for a £190,000 mortgage with a 5-year fixed rate – and now owns her first home.
Frequently Asked Questions (FAQs)
Q: Can I get a 100% mortgage without family help?
A: Yes, some products (like Skipton’s) only require proof of rental payments – no guarantor or family deposit needed.
Q: What if I fall behind on payments?
A: You risk losing your home. In family-backed schemes, your family’s savings or assets could also be at risk.
Q: Will I pay more interest?
A: Possibly. Rates for 100% mortgages can be slightly higher than standard deals due to the increased risk to the lender.
Q: Can I remortgage later to a better deal?
A: Yes – once you’ve built up equity (property value vs. what you owe), you can switch to lower-rate deals.
Q: Is there a maximum loan size?
A: Yes, it depends on the lender and your income. Typically, you can borrow 4–4.5x your annual salary, but affordability is always assessed.
Final Tips Before You Apply
Check your credit score and fix any issues
Gather proof of income and rent payments
Speak to a mortgage broker – especially one with access to whole-of-market options
Understand your monthly repayments and budget accordingly
Make sure you have some savings for fees and emergencies
Compare deals carefully – don’t just go for the first lender you see
100% mortgages are not for everyone, but for the right borrower with strong financial discipline or family support, they can be the launchpad to home ownership – even if you haven’t saved a deposit.
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