A 100% mortgage lends you the full purchase price of a home, which leaves no deposit to find. They largely vanished after the 2008 financial crisis and a small number of lenders have brought them back, mostly for first-time buyers who can prove a record of paying rent on time. This page covers how a no-deposit mortgage works, who qualifies, the routes that exist, what the borrowing really costs and what to do if you fall short of the criteria.
Availability changes quickly. A product that is open today can close next month. Treat the criteria below as the typical picture and check the current position with a broker before you plan around any one deal.
What Is a 100% Mortgage?
A 100% mortgage has a loan to value of 100 percent, which means the loan equals the price of the property and you put in no deposit of your own. Most buyers are asked for at least 5 percent, and the bigger the deposit, the cheaper the rate usually becomes, because the lender has more of a cushion if prices fall.
A no-deposit loan removes that cushion. Lenders respond with higher rates, tighter affordability checks and narrower eligibility rules, and many limit the product to buyers with a clear track record. You may also see these products called 100 percent mortgages, 100 mortgages, zero deposit or deposit-free mortgages, and all of them mean the same thing.
Are 100% Mortgages Available in the UK Now?
Yes, in limited form. The regulators’ mortgage lending statistics show how far the market has moved. In the second quarter of 2026, 8.4 percent of new mortgage lending was above 90 percent loan to value, the highest share since 2008, and 47.5 percent was above 75 percent, the highest since the end of 2007. Lending above 95 percent loan to value stayed small at around 0.5 percent of the total, which keeps a true no-deposit deal a niche product.
A handful of building societies, banks and specialist lenders have them on the shelf, and some can only be reached through brokers. Each applies its own rules, and qualifying for one does not mean you will qualify for another.
The Main Routes to a No-Deposit Mortgage
The newest route is the rent-record mortgage, aimed at first-time buyers. Lenders using it typically want evidence of twelve months of on-time rent payments within the last eighteen months, clean recent credit conduct and proof that household bills are paid on time, and the applicant must usually be at least 21. The thinking is that someone who has paid rent reliably can be trusted with a mortgage payment, even without savings.
Family-assisted mortgages are the older route. A parent or other relative provides a guarantee, often backed by their savings or by equity in their own home, and the lender lends up to 100 percent against the combined security. Historically most lenders that allowed a no-deposit purchase asked for a guarantor, and our page on guarantor mortgages sets out the obligation and what it means for the person giving the guarantee.
A third structure is the joint borrower sole proprietor mortgage. A relative joins the mortgage and their income counts towards affordability, but they are not on the property deeds. Some lenders have offered this at 100 percent for first-time buyers, and the relative takes on full responsibility for the debt.
Who Qualifies for a 100% Mortgage?
Criteria differ by product, though a pattern shows up. The buyer is usually a first-time buyer, sometimes with only one applicant in a joint purchase needing to qualify as one, and aged 21 or over. Income must be stable, and the affordability checks are tighter than on a standard mortgage, with the payment weighed against your income and your other outgoings.
Credit history carries a lot of weight. Lenders want clean conduct over recent months, with no late payments and no defaults, and modest use of cards and loans. Our explanation of what a mortgage application does to your credit report covers how searches and your file fit into the process.
The property matters as well. Many lenders exclude new builds and some flats, particularly where leasehold terms, ground rent or cladding checks raise the valuation risk, and a price limit often applies.
You will need to evidence everything: ID, address history, payslips or accounts, bank records for your rent, and proof that your bills are paid. Our checklist of the documents you need for a mortgage application lists what lenders ask for.
100% Mortgages for First-Time Buyers
Most no-deposit mortgages are aimed at first-time buyers. A lender can take on a loan with no deposit when it has a record to check, and a renter’s payment history gives it that.
Lenders decide for themselves who counts as a first-time buyer. Some want everyone on the application to have never owned a home. Some accept a joint purchase where only one buyer qualifies. A few allow someone who has not owned property for a set number of years.
Stamp Duty relief has its own test. Every buyer must have never owned a residential property anywhere in the world.
If you are buying with a partner, compare the rules on joint applications before you shortlist anything, because one previous owner can rule a product out. Our first-time buyer mortgage page covers deposits, schemes and lender criteria at every level.
Which Lenders Offer 100% Mortgages?
A small group of building societies, banks and specialist lenders, and the list shifts from month to month as products open and close. We leave lender names off this page because a name that is right today can be wrong by the time you read it. A broker can tell you which lenders are open, what each asks for and which one suits your circumstances.
What separates the lenders is the criteria. One may insist that every applicant is a first-time buyer while another accepts a mix, and others will only consider a guarantor or a joint borrower. Property type rules, price caps, the length of the fixed rate and fees also vary, and the cheapest headline rate is not always the product you can actually get.
Some of these products are only available through brokers, and a whole-of-market broker can search all of them and tell you where you stand before you apply.
What a 100% Mortgage Costs Each Month
Take a £250,000 home bought on a 30-year repayment mortgage and compare three deposit levels, using illustrative rates because no-deposit pricing sits above the rest. At 100 percent loan to value the loan is £250,000 and, at an assumed 6.0 percent, the payment is £1,499 a month. At 95 percent, with a £12,500 deposit, a £237,500 loan at 5.5 percent costs £1,349. At 90 percent, with £25,000 down, a £225,000 loan at 5.0 percent costs £1,208.
Moving from 90 percent to no deposit adds about £291 a month, which is nearly £17,500 over five years, and the extra £150 or so against the 95 percent deal reflects both the larger loan and the higher rate. The rates above are illustrations only. Real pricing varies by lender, product and your circumstances.
A one-point rise in the rate on the £250,000 loan would lift the payment to £1,663, which is £164 a month more. Lenders allow for movements like this when they check affordability, and it explains part of why the tests on these loans are tighter.
Beyond the monthly payment, budget for Stamp Duty if the price sits above the threshold, legal fees, a valuation and any product fee. First-time buyer relief applies in England and Northern Ireland to purchases up to £500,000, and our first-time buyer mortgage calculator shows the total cash needed at your price.
The Risks of Borrowing 100 Percent
Negative equity is the main risk. With no deposit you start with no equity, and a fall in prices then puts the loan above the value of the home. On the £250,000 example, a 5 percent fall leaves the home worth £237,500 against a loan of £250,000, a shortfall of £12,500, and a 10 percent fall doubles that to £25,000. It matters if you need to sell, and it can block a remortgage because lenders will not lend above the value.
It can also narrow your choices when the deal ends. A remortgage is priced by loan to value. A borrower still close to 100 percent may meet higher rates until the balance falls or the home rises in value. Overpayments, where the product allows them, and the shortest term you can afford help the balance fall faster.
A high loan on a long term leaves little room if your income drops or rates rise. Keep headroom in your budget and work out the payment at a rate a point or two higher before you commit. Our page on mortgage affordability explains how lenders assess income and commitments.
Alternatives If You Do Not Qualify
If a no-deposit mortgage is out of reach, several routes need only a small deposit. A 5 percent deposit mortgage, supported at some lenders by the government-backed Mortgage Guarantee Scheme, keeps the saving needed low, though its rates and risks sit closer to 100 percent than to 90 percent. The risks of a 5 percent deposit mortgage are set out on their own page, and our page on government schemes for first-time buyers lists what support exists.
Shared ownership splits the purchase, with you mortgaging a share and renting the remainder, which cuts the deposit because it is based on the share you buy. Our explanation of shared ownership mortgages shows how lenders treat it.
A guarantor or joint borrower can reduce the deposit requirement, and building even a modest deposit over a year or two can change the rates open to you. Our first-time buyer deposit rules page sets out what lenders expect at each level.
How to Prepare an Application
Your credit file comes first, because a clean recent record opens the door to most no-deposit products. Look at all three credit reference agencies, correct anything that is wrong and keep new borrowing to a minimum in the months before you apply.
Gather twelve months of bank records that trace the rent, plus payslips or accounts, ID and proof of address. Then speak to a broker, who can find out which lenders will accept your profile, arrange an agreement in principle and put forward one full application instead of several.
Frequently Asked Questions
Can I get a 100% mortgage in the UK?
Yes, though only a small number of lenders offer them and eligibility is tight.
Most are aimed at first-time buyers with a proven rent record, and some require a guarantor or a joint borrower.
Who qualifies for a 100% mortgage?
Typically first-time buyers aged 21 or over with a clean recent credit record, stable income and, on the rent-record route, twelve months of on-time rent evidenced within the last eighteen months.
Each lender sets its own rules.
Do I need a guarantor for a 100% mortgage?
Not always.
Rent-record products have been offered without a guarantor, but many no-deposit routes still use a guarantor or a joint borrower, and it varies by lender.
Which lenders offer 100% mortgages?
A small group of building societies, banks and specialist lenders, and the list changes often.
A broker can tell you which are open now and which suits your circumstances.
Are the rates higher on a 100% mortgage?
Usually.
A bigger loan against the property gives the lender less protection. Pricing tends to sit above deals at lower loan to value, and fees can apply. The worked example above shows what the gap can mean each month.
Can I buy a new build or a flat with a 100% mortgage?
Often not.
Many lenders exclude new builds and some flats, and price caps are common. Check the property rules before you make an offer.
Can I use a personal loan as my deposit?
Most lenders do not allow it.
The deposit usually has to come from savings, a gift or sale proceeds.
What is the difference between a 100% mortgage and a 95% mortgage?
A 95% mortgage needs a 5 percent deposit and is far more widely available, including through government-backed schemes.
A 100% mortgage needs none and is offered by few lenders with stricter criteria.
Speak to a 100% Mortgage Specialist
If you are weighing up a no-deposit mortgage, talk to us before you apply. We can find out which lenders are open to your circumstances, tell you what each one will ask for and put forward a single application.
UK Mortgage Broker is a whole-of-market broker helping clients throughout the UK and globally to secure funding on UK property. We are directly authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1628 969 500 Email: info@uk-mortgagebroker.co.uk
Related Pages
- How Much Can I Borrow? – income multiples and affordability explained.
- Current Mortgage Rates UK – rate ranges by LTV band to benchmark a deal.
- Simple Mortgage Calculator – a quick tool for monthly repayment estimates.
- Tips for Moving Up the Property Ladder – practical steps for buyers moving up the ladder.