How to Qualify for a No-Deposit Mortgage:  A no-deposit mortgage may allow an eligible buyer to borrow the full purchase price of a home.

These products are also called 100% loan-to-value, or 100% LTV, mortgages.

Availability is limited, and lender criteria can be strict. Applicants still need suitable income, affordable repayments and an acceptable credit history.

They must also have enough money for legal work, surveys, moving expenses and other purchasing costs.

At a Glance

• No-deposit mortgages are available from a limited number of lenders.
• They usually allow borrowing up to 100% of the property’s accepted value.
• Approval depends on income, expenditure, credit history and the property.
• Some products consider an applicant’s record of making regular rental payments.
• A family member may support certain products through savings, income or security.
• Buying without a deposit does not remove legal, valuation or moving costs.
• Borrowing at 100% LTV creates a greater risk of negative equity.
• Mortgage criteria and product availability can change without notice.

What is a no-deposit mortgage?

A no-deposit mortgage allows you to buy a home without contributing a cash deposit towards its purchase price.

For example, a property costing £250,000 would normally require:

The calculation appears simple. However, a lender will not approve a mortgage solely because the requested loan matches the purchase price.

The applicant, property and monthly repayment must all satisfy the lender’s criteria.

Read our detailed 100% mortgage guide for a broader explanation of loan-to-value and product structures.

Can you currently get a mortgage without a deposit?

Yes, some UK lenders offer mortgages requiring little or no cash deposit.

However, these products form a small part of the residential mortgage market. They may have tighter rules than mortgages supported by a 5% or 10% deposit.

A no-deposit mortgage may be structured around:

• the applicant’s previous rental payment record;
• additional affordability and credit requirements;
• financial support from a family member;
• family savings held as security;
• a joint borrower arrangement;
• a lender’s specialist first-time buyer criteria.

Not every product will be available through every lender or adviser.

Rates, maximum loans, property rules and eligibility requirements can also change. Current product criteria should therefore be checked before making an offer on a property.

Who may qualify for a no-deposit mortgage?

Every lender applies its own rules. However, a strong applicant will usually need to demonstrate several important qualities.

Reliable and sustainable income

The lender must be satisfied that your income can support the mortgage repayments.

Income may come from employment, self-employment, pensions or other sources accepted by the lender.

Evidence could include:

• recent payslips;
• bank statements;
• a P60;
• employment details;
• tax calculations;
• tax year overviews;
• business accounts;
• evidence of additional income.

A stable income does not automatically produce approval. The lender will consider your expenditure and financial commitments as well.

Sufficient mortgage affordability

A lender assesses whether the proposed mortgage remains affordable after regular household expenses.

It may review:

• loans;
• credit cards;
• car finance;
• childcare;
• maintenance payments;
• household bills;
• travel costs;
• pension contributions;
• dependants;
• Other secured borrowing.

Income multiples can provide a rough estimate, but they are not a complete assessment of affordability.

Our residential mortgage affordability calculator can provide an initial estimate. It is not a mortgage offer or guarantee of approval.

You can also read the Connect Lifetime guide on how mortgage affordability is assessed.

An acceptable credit record

No-deposit borrowing exposes the lender to a higher percentage of the property’s value.

Consequently, the lender may apply close scrutiny to your credit history and account conduct.

It may examine:

• missed or late payments;
• defaults;
• county court judgments;
• debt management arrangements;
• overdraft use;
• payday borrowing;
• credit utilisation;
• electoral register information;
• the number of recent credit applications.

A minor historical issue will not always prevent an application. However, options may be more limited at 100% LTV.

Check your mortgage credit file before applying. Correct any errors through the relevant credit reference agency.

A record of managing regular payments

Certain no-deposit products are designed for applicants who have demonstrated consistent monthly housing payments.

A lender may request evidence showing that rent was paid from the applicant’s own bank account.

It may also examine:

• the amount paid;
• payment frequency;
• missed payments;
• the length of the rental record;
• whether the proposed mortgage payment exceeds the evidenced rent.

A history of paying rent does not replace an affordability assessment. It may instead form one part of the lender’s overall decision.

An acceptable property

The property provides security for the mortgage. It must therefore meet the lender’s valuation and construction requirements.

Restrictions may apply to:

• flats above commercial premises;
• studio flats;
• high-rise buildings;
• unusual construction;
• short leases;
• properties requiring major repairs;
• new-build homes;
• former local authority properties;
• properties with restrictive covenants.

The lender’s valuation must also support the agreed purchase price.

If the property is valued below the price you offered, the lender may reduce the available loan. You would then need to renegotiate or provide additional money.

Do you need to be a first-time buyer?

Many no-deposit products target first-time buyers. However, the definition used by each lender can differ.

Some lenders may accept applicants who have not owned property during a specified period.

Others may require every applicant to have never owned a property.

You should disclose:

• previous UK property ownership;
• overseas property ownership;
• inherited property;
• ownership through a company;
• previous joint ownership.

Do not assume that selling a previous home automatically restores first-time buyer status.

Our first-time buyer mortgage guide explains the broader buying and mortgage process.

Connect Lifetime also provides a separate guide to mortgage preparation for first-time buyers.

Can your family help without giving you a deposit?

Some mortgages allow family support without requiring the relative to give the buyer a traditional deposit.

Depending on the product, a family member may:

• place savings into a linked account;
• provide security against another property;
• join the mortgage without becoming a legal owner;
• act as a guarantor;
• contribute income to the affordability assessment.

Each arrangement creates different responsibilities and risks.

A family member could lose access to savings for an agreed period. Their property or finances might also be affected if repayments are missed.

Independent legal advice may be required before the mortgage completes.

What costs remain when the deposit is zero?

“No deposit” does not mean “no upfront money”.

You may still need to pay for:

• solicitor or conveyancer fees;
• property searches;
• surveys;
• valuation charges;
• mortgage advice or arrangement fees;
• removal costs;
• buildings insurance;
• initial repairs or furnishings;
• Stamp Duty Land Tax, where applicable;
• a holding deposit or reservation charge.

These costs cannot always be added to the mortgage.

Prepare a separate purchasing budget before viewing properties. Retaining emergency savings after completion is also sensible.

Use our Stamp Duty calculator to estimate whether property tax may apply.

What are the risks of borrowing 100% of the property value?

A no-deposit mortgage removes one financial barrier. However, it also removes the buyer’s starting equity.

Negative equity

Negative equity occurs when your outstanding mortgage balance exceeds your property’s market value.

For example, you may buy a home for £250,000 with a £250,000 mortgage. If its value falls to £235,000, selling may not raise enough to repay the loan.

You may need to cover the shortfall from your own money.

Fewer remortgage choices

Your mortgage balance may remain close to the property’s value during the early years.

This could restrict your remortgage options when the initial deal ends.

Capital repayments and property value changes will influence your future loan-to-value position.

Higher monthly payments

Borrowing the entire purchase price produces a larger mortgage than using a deposit.

The applicable rate may also be higher than rates available at lower loan-to-value bands.

Compare the proposed payment with your present and expected household budget.

Greater exposure to changing circumstances

Illness, redundancy, parental leave or increased household costs can affect affordability after completion.

Passing a lender’s assessment does not guarantee that every future payment will feel comfortable.

A mortgage should support a sustainable home, not merely make the purchase possible.

How to prepare your no-deposit mortgage application

1. Review your credit reports

Obtain your reports from the main credit reference agencies.

Check your address history, financial accounts and payment records. Dispute inaccurate information before applying.

2. Examine your bank statements

Reduce avoidable overdraft use and missed payments.

Make sure regular commitments are clear and correctly recorded.

3. Gather income evidence

Prepare the documents required for your employment or business structure.

Self-employed applicants may need accounts, tax documents and business bank statements.

4. Record your purchasing costs

Calculate legal, survey, insurance, tax and moving expenses.

Do not use all available savings before completion.

5. Establish an affordable price range

Review the mortgage payment alongside council tax, utilities, insurance and maintenance.

Test how your budget might respond to higher future costs.

6. Obtain an agreement in principle

An agreement in principle can indicate how much a lender may consider.

It is not a final mortgage offer. The lender must still assess the full application and property.

7. Avoid unnecessary new credit

New borrowing can change your affordability and credit profile.

Speak with an adviser before taking car finance, personal loans or new credit cards during the application process.

What alternatives are available if you do not qualify?

A no-deposit mortgage is not the only route to buying.

Depending on your circumstances, alternatives may include:

• a 95% LTV mortgage;
• a gifted family deposit;
• family-assisted borrowing;
• joint borrower sole proprietor borrowing;
• Shared Ownership;
• purchasing a lower-priced property;
• delaying the application while improving credit;
• saving a smaller 5% deposit;
• reviewing your borrowing with a joint applicant.

A lower loan-to-value mortgage can provide more lender choice and reduce negative equity risk.

The correct route depends on affordability, ownership plans and the support available.

Is a no-deposit mortgage right for you?

A no-deposit mortgage may be worth considering when income is stable but saving a deposit remains difficult.

However, qualification should not be the only objective.

The more important questions are:

• Can you manage the payments comfortably?
• Do you have money for the purchasing costs?
• Could you cope with unexpected expenses?
• Do you expect to remain in the property?
• Do you understand the negative equity risk?
• Does the mortgage support your longer-term plans?

Home ownership begins with a purchase, but it is sustained through preparation.

Speak with a mortgage adviser

No-deposit mortgage products have specific eligibility, affordability and property rules.

A mortgage adviser can assess your circumstances before you submit an application or make a property offer.

They can also compare no-deposit borrowing with lower-deposit and family-supported options.

Contact Connect Experts about your mortgage options.

Frequently asked questions

Can I get a mortgage with no savings?

You may qualify without a purchase deposit. However, you will normally need money for legal work, surveys, moving costs and emergencies.

Is a no-deposit mortgage the same as a 100% mortgage?

Usually, yes. Both terms generally describe borrowing equal to 100% of the property’s accepted purchase price or value.

Does paying rent prove that I can afford a mortgage?

It can provide useful payment evidence. However, the lender must still assess your income, spending, debts, credit record and future mortgage costs.

Can I get a no-deposit mortgage with bad credit?

Options may be limited because the lender is financing the full property value. The outcome depends on the type, amount and age of the credit issue.

Will a no-deposit mortgage cover my fees?

Usually not. Legal fees, surveys, insurance, moving expenses and applicable taxes normally need separate funding.

Can a family member help me qualify?

Possibly. Some products allow family savings, additional income or security to support the application. The family member must understand their obligations and risks.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Product availability and lender criteria can change. The information provided is general guidance and does not constitute personalised mortgage advice.