Zero Deposit Mortgages: How 100% Mortgages Work in the UK

Yes — it’s genuinely possible to buy a home in the UK with no deposit. A small number of lenders offer mortgages up to 100% loan-to-value, most famously using your record of paying rent as evidence you can afford the payments. But these products come with strict criteria, real trade-offs, and they’re not the right answer for everyone — sometimes a low-deposit route beats a no-deposit one.

Here’s the honest picture: how these mortgages work, who tends to qualify, where the risks sit, and the alternatives if you don’t fit the criteria.

Can you really buy a home with no deposit?

For years, the standard answer was no — after the 2008 financial crisis, 100% mortgages all but vanished, and “save a 5–10% deposit” became the unavoidable first step to owning a home.

That’s changed. Lenders have recognised something renters have been saying for a long time: plenty of people reliably pay more in rent each month than a mortgage on a similar home would cost. The money isn’t the problem — the lump sum is, with average deposits running into tens of thousands of pounds.

So a handful of lenders now offer what are often called “track record” or no-deposit mortgages: products that lend up to the full purchase price, using your rental payment history as core evidence that you can afford to own. They’ve made headlines — and raised a few eyebrows — but for the right buyer, they’re a genuine route onto the ladder.

To be clear up front: products in this corner of the market come and go, and criteria change. What follows describes how these mortgages generally work — not a promotion of any particular deal. An adviser can tell you what’s actually available when you’re ready to buy.

How does a rent track-record mortgage work?

The core idea is simple: instead of asking “how much have you saved?”, the lender asks “have you reliably paid rent and bills, every month, for a sustained period?”

In practice, lenders offering this type of product have typically asked for:

• Proof of rent paid on time — usually 12 consecutive months of rental payments, within the last 18 months.
• A track record on household bills — the same 12-month evidence applied to the rest of the household budget, not just the rent.
• Continuity between renting and buying — often called “household-to-household” criteria: the people who’ve been renting are the same people applying for the mortgage. Joint applicants who rented separately have been accepted where each can evidence covering their own rent and bills in full.
• A full affordability assessment on top. This is the bit people miss: your rent history gets you considered, but it doesn’t replace the lender’s usual checks on income, outgoings and credit history. Paying £1,200 a month in rent helps your case, but it isn’t the whole case.

Even paying rent in cash hasn’t necessarily been a barrier — lenders have accepted a letter from a suitably registered letting agent (ARLA or similar) as proof.

What criteria do no-deposit mortgages usually come with?

Because the lender is taking on more risk than with a conventional mortgage, the conditions tend to be tighter. Criteria that have applied to products in this market include:

• First-time buyers only — typically meaning you’ve never owned a property in the UK or abroad.
• A minimum age, commonly 21.
• A clean recent credit record — for example, no missed payments on debts or credit commitments (even a mobile phone bill) in the last six months.
• Property value caps and exclusions — caps on the maximum purchase price, and new-build flats have been a consistent exclusion. Some products have excluded flats and new builds altogether, or set a minimum property value.
• Longer fixed terms — lenders have generally paired 100% lending with longer fixes (five years or more; some products have fixed for ten or fifteen years) so payments stay predictable while the loan is at its largest. Some products have even stepped the rate down automatically as the loan-to-value improves.
• No mixing with other schemes — track-record products haven’t been combinable with schemes like Shared Ownership, First Homes or Joint Borrower Sole Proprietor arrangements.

If you’ve saved a small amount — just not the 5% a conventional mortgage usually needs — that’s no bad thing. Lenders in this market have allowed deposits under 5% to be put in, reducing the amount borrowed and the monthly payment.

What are the risks of a 100% mortgage?

We’d be doing you a disservice if we only sold the dream, so here’s the other side of the ledger.

Negative equity is the big one

Borrow 100% of a property’s value and you start with no equity cushion at all. If house prices fall, you could owe more than your home is worth — which can make it difficult to move or remortgage until prices recover or you’ve paid enough down. This risk exists with any low-deposit mortgage, but it’s sharpest at 100%. It matters less if you’re staying put for years; it matters a lot if you might need to move soon.

The rate will usually be higher

The less deposit you put down, the more risk the lender carries — and pricing reflects that. Very high loan-to-value mortgages generally cost more than the same loan with a 10% or 25% deposit, which is why “wait and save a small deposit” is sometimes the better answer even when a no-deposit product is available.

Owning costs more than renting the same home

When the boiler breaks in a rental, it’s the landlord’s problem. When it’s your home, it’s yours — repairs, maintenance, buildings insurance, the lot. Lenders factor this into affordability checks, but your own budget should too.

”No deposit” doesn’t mean “no money needed”

You’ll still need to cover the other costs of buying: potentially stamp duty, solicitor’s fees, valuation costs, moving expenses. Our stamp duty calculator covers the biggest of those, and our first-time buyer guide walks through the rest of the process.

What are the alternatives to a zero deposit mortgage?

If you don’t meet the criteria — or the trade-offs don’t sit right — there are several well-trodden routes that need less than you might think:

• 95% mortgages. Widely available, and a 5% deposit is a far smaller mountain to climb than 10%.
• Gifted deposits. Money gifted by family (not loaned) is accepted by most lenders — even a small gift can move you from 100% borrowing to a 95% product with better pricing.
• Joint Borrower Sole Proprietor and guarantor-style options. A parent or relative supports the application — adding their income to the affordability calculation, or putting savings or property up as security — without necessarily being named on the deeds.
• Government and lender schemes. Shared Ownership, First Homes in England and Help to Buy in Wales can all reduce what you need to borrow or the share you need to buy. Our guide to government schemes and support for first-time buyers covers what’s available.
• Purpose-built savings products. If buying is a year or two away, savings vehicles designed for first-time buyers, such as the Lifetime ISA, can help a deposit grow faster.

The right route depends on your circumstances, your family’s situation and your timeline — exactly the kind of fork in the road where advice earns its keep.

Zero deposit mortgage FAQs

Is my rent history enough on its own to get a mortgage?

No. A strong rental track record gets you through the door, but lenders still run a full affordability and credit assessment — checking the mortgage is sustainable across income, outgoings and existing commitments, not just that you’ve paid rent on time.

Do I need a spotless credit history?

You’ll typically need a clean recent record — products in this market have required no missed payments on any credit commitments in the last six months. Older blips aren’t automatically fatal, but the cleaner your file, the more doors stay open. Not sure where you stand? Start with our guide to checking your credit report.

I’ve saved a small deposit — can I still use a track-record mortgage?

Products in this market have accepted deposits of under 5% alongside the application. Putting in what you’ve saved reduces how much you borrow and what you pay each month — saving something is never wasted effort.

Can I buy a new build with no deposit?

It depends on the product. New-build houses have been accepted by some lenders; new-build flats have been consistently excluded, and some products have ruled out flats and new builds entirely. If your heart is set on a new build, tell your adviser early.

Can I combine a no-deposit mortgage with Shared Ownership or other schemes?

No — track-record products haven’t been combinable with other borrowing schemes such as Shared Ownership, First Homes or Joint Borrower Sole Proprietor. It’s one or the other.

Are zero deposit mortgages more expensive?

Generally, yes — the highest loan-to-value products tend to carry higher rates than deals with a deposit, because the lender shoulders more risk. Use our mortgage repayment calculator to see how different loan sizes and rates change the monthly picture.

Wondering if this could work for you — or your kids?

No-deposit and low-deposit mortgages are a niche corner of the market, the products change frequently, and the right answer is rarely obvious from the outside. That goes double if you’re a parent or grandparent working out how best to help — sometimes a track-record product is the answer; sometimes a small gift or a family-assist arrangement gets a better deal altogether.

That’s what we’re here for. We search over 100 lenders and thousands of deals, we know which ones will consider 100% lending and on what terms, and we’ll tell you honestly if waiting and saving is the smarter move. Book a no-obligation chat and we’ll look at your situation properly.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the date of its last update (11th June 2026). Lending products, criteria and availability change frequently — nothing in this article is a recommendation of any particular product or lender. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only.