Can You Get a Mortgage With No Deposit in 2026?

Having a hard time saving up a deposit? A no-deposit mortgage may make you own your first home without any initial deposit. This is how this works, what you have to consider doing in the UK, and what the lenders actually seek before issuing a 100 per cent loan-to-value (LTV) mortgage.

What is a no-deposit mortgage?

A no-deposit or 100% mortgage, or 0 per cent deposit mortgage, allows the purchase of a home without any money down. The lender pays the entire property value; it is referred to as a 100% loan-to-value (LTV) mortgage.

Loan-to-value (LTV) is the ratio of the borrowed price of property.

The lender is more risky with the higher the LTV. The lender is paying the full purchase; hence, there is no equity cushion in case the property prices decrease.

Such offers are hard to come by, but they may represent a salvation to first-time customers who are currently paying high rent and finding it difficult to accumulate savings.

What is the amount of deposit that you normally need to purchase a house?

A majority of lenders would require a minimum deposit of 5%, so you would have a 95% mortgage. Therefore, in case you are purchasing a £200,000 house, you would have to make a saving of at least £10,000 initially.

Numerous lenders also impose a loan-to-income (LTI) limit. In most cases, the amount of money you can borrow is approximated at 4 to 4.5 times your annual income, depending on your situation. This is a regulation that assists lenders in risk management, and borrowers should not be overstretched.

Besides this, lenders do affordability stress tests. Such tests are used to determine that you would still make repayments in the future in case of an increase in the interest rates. The interest rate charged by the Bank of England is a direct factor affecting mortgage pricing, and this is why lenders have to price repayments at a greater stress rate to safeguard you as well as the lender.

What is the operation of mortgage deposits?

The deposits to house are computed as a percentage of the worth of the house that you finance with your own money. Then you borrow the rest using a mortgage.

As a rule, the larger the deposit, the higher the rates of interest. That's because:

Is it possible to obtain a mortgage with a 0 deposit?

This is not unlikely in the UK, but it is a rarity. The result of the 2008 financial crisis was the elimination of most 100 per cent mortgages due to stricter lending policies. The Financial Conduct Authority (FCA) enhanced affordability controls, and lenders minimised high-risk products.

But there are a few lenders who have been cautious enough to reintroduce 100% products. Indicatively, Skipton Building Society introduced a 100% LTV mortgage to renters who are able to prove a good record of periodically paying their rent.

To calculate the data on the debt-to-income ratio, lenders evaluate the monthly commitments that you should be able to make. They will also look at your credit file to establish whether you have missed payments or defaults or County Court Judgements (CCJs).

Other high street lenders, like Nationwide Building Society and Halifax, do not necessarily extensively offer 100 per cent mortgages but do have high LTV products with stringent affordability requirements.

Are the no-deposit mortgages risky?

This they can do, especially when the prices of property drop.

Consider an example: say you borrow a 100 per cent mortgage on a £100,000 property. You owe the lender £100,000. In case the quoted price of houses falls by 10 per cent, your house can be worth £90,000. This means:

Mortgages that have higher LTV are also normally accompanied by high interest rates. A one per cent difference can greatly add to your overall repayment in a term of 25 years. This is so because the lender will price the mortgage depending on the perceived risk and capital requirements.

Secondly, on a remortgage, the process itself might be harder when you have minimal or no equity established.

Mortgages that are 100 percent guarantor mortgages

An alternative to a direct 100% mortgage is a guarantor mortgage in case you are not able to get the direct one.

This typically means that a family member or close friend of yours that has their own house will be able to help with their mortgage. They also do not make monthly payments unless you do not do it, but they become liable to it in law.

Security may be given in two typical forms by a guarantor:

Some banks, like Lloyds Bank, might have family-assisted or supported mortgages where the savings of parents are taken as security instead of direct deposit.

How lenders assess risk

When reviewing a 100% mortgage application, lenders consider:

They must also comply with affordability regulations overseen by the Financial Conduct Authority. This ensures responsible lending and protects borrowers from excessive debt.

Because 100% mortgages carry greater risk, lenders may require stronger evidence of financial discipline than they would for lower LTV products.

Alternatives to a 0% deposit mortgage

If a true no-deposit mortgage is not suitable, there are alternatives worth considering.

Should you speak to a mortgage broker?

If you are unsure which route is best, speaking to a qualified mortgage broker can help. Brokers have access to a wider panel of lenders and understand each lender's underwriting criteria.

Final thoughts

Getting a mortgage with no deposit is possible in the UK, but it is not straightforward. Lenders carefully assess risk through affordability checks, stress testing, and credit analysis. Because 100% mortgages carry greater exposure, they often come with higher interest rates and stricter eligibility requirements.

With careful planning, a stable income, and a strong credit profile, a no-deposit mortgage could help you take your first step onto the property ladder, but it is important to weigh the risks as carefully as the benefits.

Frequently Asked Questions (FAQs)