Can You Get a Mortgage Without a Deposit?

Getting on the property ladder is difficult, largely because getting a mortgage is often a challenge. So what happens when you don’t have a deposit saved but still want to make the leap into homeownership? Can you even get a mortgage without a deposit? In short, yes. You can get a mortgage without a deposit. This then makes it possible for you to begin your homeownership journey earlier than you thought possible. That being said, it comes with some risk alongside the benefits it delivers, as we explain in our latest blog.

What is a no-deposit mortgage?

A no-deposit mortgage is exactly what it says it is, a mortgage without a deposit. They are also known as 100% mortgages because you are borrowing 100% of the property price.

In most cases, when you want to buy a property, you use a deposit to cover a percentage of the property value, and the remaining balance is financed with a mortgage.

Example:

Property value: £300,000

Deposit: 20% (£60,000)

Mortgage required: £240,000

How does a mortgage without a deposit work?

If you have been unable to save a deposit and choose to go the route of a no-deposit mortgage, you’ll find that it works much the same as a regular mortgage. You’ll make regular monthly payments to pay back the mortgage and interest. After the fixed-term ends, you’ll then move to the SVR (standard variable rate) product, meaning your monthly mortgage payments may increase or decrease. You could also consider remortgaging at this point, but this may come with additional fees and even require a substantial deposit if 100% mortgages are no longer available.

Are deposits without a mortgage more expensive?

In most cases, they are. This is because you are borrowing a larger sum and paying it back over the same length of time as somebody who has a mortgage with a deposit. So while it may be easier to get a mortgage without a deposit, it’s worth considering how much it costs you per month and how much it affects your cost of living.

Who offers mortgages without a deposit?

Not as many lenders as you may have thought offer 100% mortgages these days. This is largely due to the financial crisis of 2008. Lenders were being a little too generous back then, and that blasé attitude to credit saw both lenders and individuals spiral into financial chaos. Rules on lending have since been tightened, and this has seen a steady reintroduction of no-deposit mortgages across a range of lenders. However, they aren’t available for everyone, and it may be more likely to find a 90% or 95% mortgage as the easiest mortgage to be accepted for. Skipton Building Society is one lender that’s embraced the no-deposit mortgage, specifically targeting renters to make that first step onto the property ladder.

How to get a mortgage without a deposit

As with any mortgage, much depends on the lender's criteria. Some have very stringent criteria for you to fulfil, and even if you’ve had no previous financial issues, have always paid rent and bills on time and earn well enough, you may not be eligible.

Using Skipton as an example, they would typically require you to meet the following criteria to be accepted for a mortgage without a deposit.

• Be at least 21 years old
• Only use the mortgage if you are a first-time buyer
• The property must not be worth more than £600,000
• Have a good credit history
• Have proof of at least 12 consecutive months of rent payments in 18 months
• Have kept up to date with all bills associated with the rented property
• Have not defaulted on any debt payments for personal loans, credit cards, etc

How much could I borrow for a mortgage without a deposit?

It varies. Some lenders have limits on property value, but all lenders will assess your income, affordability and credit score before making a final decision.

What are the advantages of a mortgage without a deposit?

A no-deposit, or 100% mortgage, can be a great way to take the step and become a homeowner. We’ve listed some of the reasons many first-time buyers look for mortgages without a deposit.

No need to save for years

Saving a deposit for a home can take an incredibly long time. Even where lenders are offering 95% mortgages, you’ll still need at least £13,500 saved to put down a deposit on a mortgage for a house priced at the current UK average of £2721,531. Then factor in all the other costs, such as solicitor fees and estate agent fees, and you may need a further £2,000+ to make sure your property plans can proceed. With a no-deposit mortgage, you won’t need to worry about that lump sum, and can instead put any savings into your other buying fees and furnishing the property.

A quicker leap onto the property ladder

The property market is competitive, so the sooner you can get your foot on the ladder, the better. Every mortgage payment you make goes towards clearing that debt and increasing your equity in the property. When you rent, you’ll be paying that money, and probably more, into someone else's bank account every month.

Reduce your debt faster

With no deposit required, any savings you have been building could go towards making mortgage overpayments. This will reduce the amount of money going to the bank and increases your stake in the property. Just remember not to overpay by too much, as early repayment charges can soon run into thousands of pounds.

Increase your property value

Any money that hasn’t gone towards the purchase could instead support home improvement. Then, when you want to sell your house fast in the future, you may be more appealing to buyers and get a better price for the home.

What are the disadvantages of a no-deposit mortgage?

Unfortunately, even though no-deposit mortgages can be great, they can also be risky.

Higher interest rates

Interest rates on a mortgage are always the biggest concern, and with rates for regular mortgages still concerningly high (average as of November 2025, 4.52%-5.11%), people are trying to shop smart when it comes to borrowing. Unfortunately, with no-interest mortgages, the likelihood of finding anything below the current averages is unlikely. Mortgages with no deposit tend to come with higher interest rates as the bank views the loan as riskier.

Higher interest rates also mean that your home is likely to cost you more than it would if you had a deposit to put down initially.

You could lose money

When you have a deposit, no matter how small, you are buying a portion of the home. When you take a no-deposit mortgage, you don’t own any of the property at all. You’ll owe the bank the amount you borrowed, plus interest. If the value of your home falls, you might owe more than your property is worth.

You may not be eligible

All lenders that offer mortgages without a deposit have specific criteria that applicants must fulfil. As a result, approval can sometimes be difficult to obtain. Add in the current cost of living, and the fact that, as of February 2025, UK consumer debt was estimated to be just over £8,000 per household, and it may not be easy to get the mortgage you had hoped for. With debt at these levels, and rising, lenders will be reluctant, especially as they will want to see proof that rent and bills have been paid on time consistently over the past year.

Furthermore, only those currently renting may be eligible for such a mortgage, limiting the reach of the product even further.

Are no-deposit mortgages the same as guarantor mortgages?

Sort of. Some no-deposit mortgages are standalone products where the responsibility for payments is purely yours. In some cases, a no-deposit mortgage may take on the form of a guarantor mortgage. This usually involves a family member or close friend agreeing to pay your mortgage when you are unable to.

This can be risky as your guarantor may offer their home as security. This means that if you were to default, the lender could seek possession of the guarantor's home to cover the losses. Alternatively, a guarantor can pay a lump sum into an account that is then used in the event you are unable to pay your mortgage. We cover guarantor mortgages in detail in a recent blog post.

If you purchased a property with a no-deposit mortgage but are finding new deals unaffordable, selling might be an option to consider. With Bettermove, we make a guaranteed offer on your home, and if you accept it, we can buy it in as little as seven days. Without any fees, you keep the money you make, allowing you to clear the mortgage balance or perhaps put down a deposit on a new property. Our network of cash house buyers is ready to make you an offer. Call us today to find out more.