0% deposit mortgages: what are they and how can I get one?

Buying your own home is a dream for millions of people in the UK, yet affordability can be a huge barrier to getting onto the housing ladder. 

If you’re struggling to save up that vital deposit to make your home ownership dream a reality, one option could be a 0% deposit mortgage, also known as a 100% mortgage or no-deposit mortgage. 

We’ll explain everything you need to know about 0% deposit mortgages, including the pros and cons.

What is a 0% deposit mortgage in the UK? 

Usually, when you buy a home, you have to put down a deposit; this can be as little as 5% but is usually around 10%-20% of the property’s value. 

The bigger the deposit you have, the more likely you are to get a better rate on your mortgage. 

As the average price of a UK property is £270,000, according to the Office for National Statistics, you would need £27,000 for a 10% deposit.

With a 0% mortgage, you’re borrowing the whole value of the property you plan to buy, so no deposit is needed.

While this type of mortgage is targeted towards first-time buyers, it may be available to other people. 

What is a 100% mortgage and how does it work? 

As we mentioned, a 0% mortgage is when you borrow the whole purchase price of a property without a deposit. 

While the deposit is a huge upfront expense, you’ll still need to pay for legal fees, homebuyer surveys, mortgage fees and stamp duty (if applicable), as well as moving costs. 

This can add up to thousands of pounds, so it’s worth knowing how much you need to save. 

Are no-deposit mortgages widely available? 

Before the financial crisis in 2008, 0% deposit mortgages were widely available, with Zoopla flagging that some lenders gave mortgages worth up to 125% of the property’s value. 

Following the financial crisis, no-deposit mortgages were perceived as too risky, so they became a rarity. According to Moneyfacts, no-deposit mortgages still make up less than 1% of the UK market, with just 24 deals available as of September 2025. 

In 2023, Skipton introduced the first truly 0% deposit mortgage since 2008.

Skipton’s Track Record Mortgage allows renters with less than a 5% deposit to borrow up to £600,000 if they:

✅ Haven’t owned a property in the UK in the last three years.

✅ Are at least 21 years old.

✅ Have no missed payments on debts in the last six months.

✅ Are not planning to buy a property in Northern Ireland.

Your rent track record will also impact how much you can borrow.

Sole applicants need to prove that all rent has been paid for 12 consecutive months within the last 18 months.

Joint applicants need to prove that all rent has been paid either by one applicant or collectively for 12 consecutive months within the last 18 months. You may also need to show that household bills have been paid.

One lender that launched a 0% deposit mortgage product earlier this year is April Mortgages. It offers a No Deposit Mortgage for those with a clean credit history, earning at least £24,000 a year, who don’t have a deposit saved, with the option to fix your rate over 10 or 15 years.

Gable Mortgages also has a Zero Deposit Mortgage, which it says is tailored to the needs of ‘Generation Rent.’ Offering borrowing of up to 4.49 times income (5 times for key workers), this mortgage is only available through a mortgage broker.

Unbiased can help you find a suitable broker. 

Can I get a mortgage without a deposit, and is a guarantor required? 

While you can apply for a 0% deposit mortgage, there aren’t many available.

If you can manage to save something towards a deposit, you could look for an ‘almost 100% deal’ instead.

For instance, Vida Homeloans offers mortgages at 97% loan-to-value, and Yorkshire Building Society has a £5k Deposit Mortgage available to first-time buyers.

If you are struggling to scrape together much of a deposit, other options to consider are a guarantor, family deposit, or family offset mortgage.  

It’s worth talking to a mortgage broker who can look at what 100% mortgages or alternatives are available and recommend the best one for your circumstances.

Unbiased can match you to a qualified mortgage broker who can find the most competitive deal for you.  

What is a guarantor mortgage? 

A guarantor mortgage doesn’t require a deposit, but instead you need a guarantor who will usually need to be a homeowner themselves. You must have a guarantor. This type of mortgage can also be an option if you have a poor credit history or no credit history.  

The catch is that if you can’t pay your mortgage, your guarantor must cover your payments – and as their property is ‘security,’ the lender can sell it if neither you nor the guarantor can pay. 

A guarantor is usually a family member, but it doesn’t necessarily have to be. 

It’s vital to stress that while the guarantor is legally responsible for paying your mortgage, if you can’t, they don’t own any of your property. 

For some guarantor mortgages, savings are used as security instead of their property. So, your guarantor can pay money into a specific savings account that may also offer interest. 

The lender can access this account for missed mortgage payments, or it can be linked to the mortgage to reduce monthly payments. 

A big downside to guarantor mortgages is that rates are normally higher than a typical mortgage, as you’re seen as a riskier borrower due to having no deposit.  

If you’ve been asked to be a guarantor for a mortgage, there are big risks to consider, so it’s worth talking to a mortgage broker beforehand.  

What is a family deposit mortgage? 

This type of mortgage requires a family member to either use their savings or property as security for your mortgage. 

They have to pay 10%-20% of the property value into a specific savings account, which may offer some interest. This money is kept in the account for a set period of time, so they can’t access it. 

Similar to some guarantor mortgages, a mortgage lender can access this money if you fail to keep up with monthly payments and if your family member’s home is security, this can be forcibly sold (as well as your home).

What is a family offset mortgage? 

A family offset mortgage is like a family deposit mortgage, except your family member cannot earn interest on their savings. 

Instead, this type of mortgage offsets the amount you pay against the amount in the linked savings account, so you have lower monthly payments. 

What are the pros and cons of 0% deposit mortgages?

Before committing to a 0% deposit mortgage, there are advantages and disadvantages to consider.

Advantages of 0% deposit mortgages

✅ The upfront cost of buying your own home is a lot less, as you don’t need a deposit. You could choose a small property to get your foot on the property ladder before upsizing. 

✅ You can buy a property quickly if you are worried about house prices rising in the future. 

✅ The opportunity to build equity in your home with monthly repayments and overpayments if you choose to. 

✅ A way to escape renting and get onto the property ladder, even if you’ve been unable to save a deposit due to high rental costs. 

Disadvantages of 100% mortgages 

❌ You risk going into negative equity, where your home is worth less than you paid for it. This could mean you are stuck, unable to sell your property if you can’t find the difference between your mortgage amount and the property price to repay your lender. 

❌ You may have a higher mortgage rate as there are not many 0% deposit mortgages available on the market. 

❌ You will spend more on interest as you’ll have a larger mortgage than if you had a deposit. 

❌ You may not buy your ideal property as you are limited in how much you can borrow. 

❌ Your loan-to-value (LTV) may be higher compared with a traditional mortgage, so you may get more expensive deals when you remortgage. 

❌ If a guarantor or family member supports your mortgage, their property is at risk if you fall behind on payments, or they may not be able to access their savings for a set time period. 

Are 100% mortgages available to first-time buyers? 

As first-time buyers face huge barriers to home ownership, a lot of 100% mortgages are targeted at those looking to buy their first home – but not exclusively.  

So, anyone who’s planning to remortgage or move home may be eligible. 

Why should you consider saving a deposit? 

Saving for a deposit is difficult, but you can reap many benefits, such as lower mortgage rates and monthly repayments, plus you pay less interest overall and can access more competitive mortgages. 

You’ll also boost your chances of getting your mortgage approved if you have a deposit. 

What are the alternatives if you don’t qualify for a 100% mortgage? 

If you don’t qualify for a 0% deposit mortgage, here are some alternatives to consider. 

• Get a deposit gifted from a family member (or they may be able to borrow against the equity in their home so they can give you a deposit).

• Apply for the government’s mortgage guarantee scheme, which helps people buy a home with a 5% deposit by encouraging lenders to offer 95% mortgages. This scheme was due to close this summer but has now been made permanent.

• Apply to the shared ownership scheme, where you buy a share of the property and pay rent to a landlord.

• Contribute to a lifetime ISA if you’re aged 18-39. You can contribute up to £4,000 each tax year, and this is topped up by the government by 25% (up to £1,000 every year).

• Get a new-build developer loan, where the property developer allows you to borrow money for a deposit that you pay back over a specific time period.

• Consider a joint mortgage by buying with someone else

• Consider the Deposit Unlock scheme, where you can buy a new-build home with a 5% deposit.  

Get expert mortgage advice

0% deposit mortgages can offer a lifeline to those struggling to save for a deposit, making home ownership more accessible.

However, these mortgages come with their own set of challenges, including higher interest rates and the potential risk of negative equity.

While options are limited and may require additional support like a guarantor, exploring alternatives such as government schemes, savings plans, and shared ownership can provide viable paths to home ownership.

By carefully weighing the pros and cons and considering your financial situation, you can make an informed decision that aligns with your long-term goals.

Let Unbiased match you with a qualified mortgage broker who can help navigate the complexities of 0% deposit mortgages and find the best options tailored to your financial situation.