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100% mortgages & 0% deposit mortgages
Find out how 100% LTV (loan-to-value) borrowing works, and who can get a no deposit mortgages in our helpful guide.
Tell us about yourself and let our broker partner, Mojo Mortgages, compare mortgage options for you.
What is a 100% mortgage?
A 100% mortgage, also known as a no deposit mortgage, is where you borrow the full amount needed to buy a property. As you won't use a deposit, your mortgage will have a 100% loan-to-value (LTV) ratio.
Typically, the higher the LTV ratio, the greater the risk for the lender, so 100% mortgages tend to have higher interest rates than if you use a deposit when buying your home.
How does a 100% mortgage work?
With a no deposit mortgage, you're still borrowing a sum of money to purchase a property and then repaying it, along with interest, over a set term. But the key difference between a 100% mortgage and any other mortgage is that you don't need a deposit.
It's important to consider that it's easier to fall into negative equity when you don't provide a mortgage deposit. This is because you have no initial equity in your property so, if it falls in value, you could find yourself owing the lender more than your home is currently worth.
Can I get a no deposit mortgage?
There are very few lenders offering 100% mortgage options. Most of those available are via a specific kind of product, such as a guarantor mortgage or family assisted mortgage.
However, buying a home has become more difficult for many prospective first-time buyers as average house prices significantly outweigh average income, and interest rates are higher than they were in the past decade. This led to Skipton Building Society bringing out the first truly 100% mortgage in over a decade in 2023, and other lenders starting to bring 0% deposit mortgage options to the market in 2025.
Find out how much you could borrow
If you're thinking about buying a property, our broker partner Mojo can help:
Free expert advice and answers to your mortgage questions
An affordability and eligibility assessment
A mortgage in principle to help you understand what you could borrow
Advantages of 0% deposit mortgages
Allows borrowers to purchase a home without a deposit, which could allow you to buy a home much earlier than you might otherwise be able to
If property prices are expected to rise, it can be advantageous to get on the property ladder sooner rather than later
In some cases, monthly mortgage payments could be comparable to the amount you're paying in rent, but you'll be building equity
If using a guarantor or family assisted mortgage, they can be a great way for parents and grandparents to help their family buy a home
Disadvantages of 0% deposit mortgages
Interest rates tend to be higher
You may find that lenders offering 100% mortgages often have stricter eligibility criteria
There are a limited number of lenders offering 100% mortgage options, which means you'll have fewer products to choose from
You have no equity (share) in the property at the start of the mortgage, which puts you at a greater risk of negative equity if property prices fall – this may prevent you from moving or remortgaging until property prices rise again
If using a family member as guarantor, their finances are at risk if you're ever unable to repay the loan
How much can I borrow at 100% LTV?
If you're borrowing the entire cost of your new home, this may limit the value of the property you're able to buy. Lenders typically offer around 4.5% your income, so:
If you earn £30,000, you may be able to borrow around £135,000 - so this is the value of the home you could afford to buy.
If you added a 10% deposit, it's unlikely to change the amount you could borrow, as that's based on affordability. But you could buy a property worth £148,500 with the £13,500 deposit + £135,000 loan, increasing your options considerably.
A mortgage calculator can help you to get an idea or the sort of mortgage size you might be able to get based on your income and deposit. But remember, income isn't the only factor. Each lender will have their own affordability criteria, and will also consider your outgoings, personal circumstances and credit score.
Skipton 100% mortgage
Skipton Building Society's deposit-free 'Track Record' mortgage is aimed at those renting property but unable to qualify for a mortgage to buy a home of a similar value to the one they're renting.
Key facts about the Skipton deposit free mortgage
You'll need to provide at least 12 months' proof of paying rent on time, and ensure you have no missed payments on debts or credit commitments in the last six months
The interest rate you're offered will be fixed for five years
You don't need to be a first-time buyer, but can't have owned a property anywhere in the world for at least three years
You can only borrow up to £600,000 and the property can't be a based in Northern Ireland
Although a no deposit mortgage, you can provide up to 5% if you wish - this could provide you a small barrier from negative equity
Are 100% mortgages a good idea?
100% mortgages offer a route to home ownership for those without a deposit, making them an appealing option if you qualify. However, it's important that you understand the greater risk involved in borrowing at 100% LTV.
A mortgage is a huge commitment, and even more so if you're borrowing 100% of the cost of your home. It's therefore strongly recommended that you speak to a mortgage broker if you're unsure which type of mortgage is right for you.
What alternatives are there to deposit free mortgages?
Although it's appealing to use a deposit free mortgage option to get onto the property ladder sooner, there are other options that could help you to do so with slightly less risk.
An experienced mortgage broker will be able to advise you on which mortgage option is best for your circumstances.
Gifted deposits
If you're struggling to save a large enough deposit and are lucky enough to have family members willing to help, you might be able to supplement your deposit with a gifted deposit.
Not all lenders accept gifted deposits, and some limit the amount the can be gifted. However, offering even a small deposit reduces the risk to both you and the lender, and is therefore likely to give you access to more competitive rates when you compare mortgages.
Home ownership schemes
There are a number of home ownership schemes in the UK, offered by both the government and property development companies. Each is intended to help those struggling to save a deposit or meet the affordability criteria of taking out a mortgage to buy a new home.
Typically these schemes work by reducing the size of the deposit requirement, or providing access to specific properties that can be bought with less financial outlay. That said, none of the schemes currently available allow borrowers to take out a mortgage with no deposit at all, so they are not direct alternatives.
100% LTV mortgage FAQs
Is there a no deposit mortgage government scheme?
No, there are no government schemes that allow you to get a mortgage without using a deposit at all. However, there are some that will help you provide a larger deposit. Check out our assisted mortgage schemes page for more information.
Can you get a buy-to-let mortgage with no deposit?
No, you won't usually be able to get a zero deposit mortgage to use for buy-to-let purchase. Some specialist finance companies may offer this option to portfolio landlords, but they'll usually need to put down another investment property as security, in lieu of a deposit.
Typically buy-to-let mortgage lenders require a minimum of a 25% deposit (although this can vary from 20-40% depending on the lender and the borrower's circumstances).
What type of 100% mortgage rates could I get?
100% mortgages are rare, as most lenders do require a deposit. However, some options are available, but interest rates tend to be higher than lower loan-to-value mortgages due to the increased risk for the lender.
No deposit mortgages tend to be offered on a fixed-rate basis, too, so it's worth considering whether you're comfortable locking in a deal for a fixed period of time. If your circumstances change or you wish to remortgage to a different deal sooner, you may face early repayment charges.
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions.
Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.
Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH.
Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215)
Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.