100% Mortgage Guide | How to Buy a Home With No Deposit. Buying a home without a deposit can feel out of reach for many people.
Rising rents, higher living costs, and slow wage growth make saving difficult.
This is a common challenge for first-time buyers across the UK.
A 100% mortgage is designed to help buyers purchase a property without using a cash deposit.
These mortgages are sometimes called no-deposit mortgages.
They are not suitable for everyone and are subject to strict lender criteria.
This guide explains how 100% mortgages work and who they are designed for.
It also outlines the risks, benefits, and available alternatives.
If you are at the start of your journey, speaking to a mortgage adviser can help you understand whether this type of mortgage is realistic for your circumstances.
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?
A 100% mortgage does not require a deposit.
However, lenders still conduct strict checks to ensure the mortgage is affordable.
If you are planning to apply, it helps to speak with a mortgage broker who understands current lender criteria.
What Lenders Assess
Credit history
Most lenders expect a good to excellent credit score.
This is usually checked through agencies such as Experian or Equifax.
Income stability
Applicants normally need a steady income.
Many lenders look for at least six to twelve months of continuous employment or self employed trading history.
Affordability checks
Lenders assess whether you can afford monthly repayments based on your income and outgoings.
This includes existing debts and everyday living costs.
Proof of rental payments
Some products require proof of on-time rent payments.
This is common for track record-style mortgages.
Family support if required
Certain mortgages need family assistance.
This may involve acting as a guarantor or placing savings into a linked account as security.
A qualified adviser can confirm which option suits your circumstances.
Which Lenders Offer 100% Mortgages?
Only a small number of lenders currently offer 100% mortgage products.
Each has specific rules and eligibility requirements.
Available Lender Options
Skipton Building Society
Product: Track Record Mortgage
Criteria: Twelve months of rent paid on time. No family support required.
Barclays
Product: Family Springboard Mortgage
Criteria: A family member deposits ten per cent into a linked savings account for five years.
Lloyds Bank
Product: Lend a Hand Mortgage
Criteria: Family savings used as security. Borrower receives one hundred percent of the purchase price.
Generation Home
Product: Income Boost or Deposit Boost
Criteria: Allows family to support the application through income or deposit assistance.
April Mortgages
Product: 100% Fixed Rate Mortgage
Criteria: Designed for first time buyers with a strong rental payment history and stable income. No guarantor or family savings required.
April Mortgages offers an alternative route for renters who meet affordability checks and can evidence consistent rent payments.
Mythbusters: 100% Mortgages
Many buyers misunderstand how 100% mortgages work.
Here is what lenders actually look for.
You do not need good credit
False. Strong credit is essential for most approvals.
You can get a 100% mortgage easily
False. These products are limited and tightly assessed.
Anyone can be a guarantor
False. Guarantors must have sufficient income or property equity.
You do not need any savings at all
Partly true. No deposit is required, but fees still apply.
These mortgages always end badly
False. When managed responsibly, they can support home ownership.
Costs to Budget For Even Without a Deposit
Although a deposit is not needed, other costs still apply.
Legal fees
Typically between £800 and £1,500.
Valuation fees
Usually £0 to £500. Some lenders include this cost.
Mortgage broker fees
Often free, though some brokers charge up to £500.
Stamp duty
Often £0 for first-time buyers purchasing under £425,000.
Moving costs
Typically £300 to £1,000.
Emergency savings
Strongly recommended to protect against unexpected expenses.
Pros and Cons of 100% Mortgages
Advantages
No deposit required
Suitable for renters without savings
Helps buyers step onto the property ladder sooner
Some products require no guarantor or family savings
Disadvantages
Interest rates may be higher
Risk of negative equity if property values fall
Fewer lenders offer these products
Family savings may be tied up for several years
Stricter affordability assessments apply
A mortgage adviser near you can help weigh these pros and cons based on your goals.
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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. |
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