No-deposit and 100% mortgages

A no-deposit mortgage, also called a 100 per cent mortgage, is a home loan for the full price of a property with no cash deposit. A handful of lenders offer them, usually to first-time buyers with a steady income and a record of paying rent on time. The loan is a regulated mortgage (FCA Handbook MCOB, accessed 20 Oct 2026).

These products are less common than low-deposit mortgages, and their criteria are strict. Lenders often set limits on income, the property type, the term and the buyer's credit history, and some products are only available for buyers who can show a long record of rent payments.

A full-price mortgage works like any repayment mortgage, except the loan equals the price. Some products rely on the buyer's rent history to show affordability, while others need a family member to offer savings or property as extra security. Each lender sets its own maximum loan, term and fixed periods.

Purchase costs still need cash, even when the mortgage covers the price. Legal fees, a survey, moving costs and any stamp duty above the first-time buyer threshold all need paying, so buyers without any savings may find the purchase difficult even when the loan covers the whole price.

Family-assisted mortgages can replace a cash deposit. A family member can offer savings held in an account with the lender for a set period, or equity in their own home as extra security. Guarantor mortgages ask a family member to cover the payments if the buyer cannot, and joint borrower mortgages add a family member's income.

Each option puts the family member's money or home at some risk, so they usually need independent legal advice before agreeing. How these options compare is explained on the guarantor and family-assisted mortgages page, which covers each type and what lenders check.

Borrowing with no deposit leaves the buyer with no equity at the start. If prices fall, the loan can be larger than the home's value, which is known as negative equity. That can make it harder to remortgage or move home until the loan is paid down or prices recover.

Rates on no-deposit mortgages are usually higher than on loans with a deposit, and fewer lenders offer them, so the choice at the end of a fixed period can be narrower. Building a small deposit, even a few thousand pounds, can widen the choice of lenders and lower the rate.

Lenders offering no-deposit mortgages usually want a clean or near-clean credit history, because there is no deposit to cushion their risk. Missed payments, defaults or county court judgments can rule an application out, especially if they are recent. Buyers with credit problems often find more options with a deposit, even a small one.

Checking a credit file with the main agencies before applying shows what lenders will see, and correcting errors can help. A broker who arranges first-time buyer cases can say which lenders consider a particular history, and the first-time buyer mortgage lenders page shows how lenders differ on criteria.