TL;DR
In short
- Buying without a deposit is possible through some specialist mortgages, with eligibility and availability varying by lender and UK country.
- Rent-payment history can support an application, but lenders still check income, spending and credit history.
- Family support may involve a repayment guarantee or savings or property as security, putting the helper’s finances at risk.
- A no-deposit mortgage still leaves buying costs to budget for, so keep a cash reserve.
- Compare borrowing costs and negative-equity risk with the option of saving a deposit before deciding.
You may be able to buy a home without a deposit, but the options are limited. A 100% mortgage can cover the full property value accepted by the lender. It does not remove affordability checks or pay every cost of moving. This guide explains the main routes and how to weigh them against saving a deposit.
Can you buy without a deposit?
Some lenders offer specialist mortgages for renters without requiring family security. For example, Skipton’s Track Record mortgage currently accepts applicants aged 21 or over who have not owned a UK home in the past three years. It requires evidence of rent paid for 12 consecutive months within the previous 18 months, alongside its other lending checks.
That example is available in England, Scotland and Wales, not Northern Ireland. It is not restricted to people who have never owned a home. Property and residency criteria also apply, so check the lender’s current requirements before making plans. Our no-deposit mortgage guide explains this route in more detail.
Can paying rent help your application?
Some lenders already use rent-payment records when assessing an application. Paying rent reliably can help demonstrate your payment history, but it does not guarantee approval or a particular loan amount. Income, existing debts, regular spending and credit history still matter; lenders do not all assess rent in the same way.
How does family support differ?
With a guarantor mortgage, a helper may become responsible for repayments if the borrower cannot pay. Other family-assisted arrangements use savings or a charge over a relative’s property as additional security. These are different commitments, and neither automatically removes the need for a buyer’s deposit.
For example, Family Building Society’s Family Mortgage can use family savings or property security, with lending available in England and Wales. Its family-security conditions explain that savings can be tied up and security may be used to cover a shortfall. Release depends on the agreement’s conditions. Helpers should understand the potential loss of savings or risk to their property and obtain independent legal advice before committing.
How deposits and affordability work
A deposit reduces the amount you borrow and gives the lender a margin if the property falls in value. It is not proof that you can afford the repayments: the lender separately assesses your income, outgoings, credit commitments and mortgage term. Start with a sustainable monthly budget, including maintenance and household bills, rather than only the largest loan available.
Loan to value (LTV) is the mortgage amount as a percentage of the property’s value accepted by the lender. For an illustrative £250,000 purchase, assuming the valuation equals the price and no fees are added:
- A 5% deposit is £12,500, leaving 95% LTV.
- A 10% deposit is £25,000, leaving 90% LTV.
- A 15% deposit is £37,500, leaving 85% LTV.
- A 20% deposit is £50,000, leaving 80% LTV.
A lower valuation can leave a cash gap. For example, Skipton’s Scottish Track Record lending is based on the lower of the purchase price or Home Report value; you must fund any amount offered above that value yourself.
Help also differs by country. Our guide to buying a home in Wales covers local options, but an assistance scheme is not necessarily a no-deposit route: Help to Buy – Wales requires at least a 5% buyer deposit and an eligible property.
What cash do you need beyond the deposit?
No deposit does not mean no savings needed. Allow for conveyancing, any survey you arrange, moving costs, insurance and any mortgage or adviser fees that apply. A lender’s valuation checks the property’s suitability as security; it is not a survey of its condition for you.
Some mortgages have no product fee. Where a fee applies, the lender may allow it to be added to the loan within its lending limits, but you will then pay interest on it. MoneyHelper’s guide to mortgage and moving costs explains the distinction between upfront and financed costs.
Purchase tax may also be due, depending on the price and your circumstances: Stamp Duty Land Tax in England and Northern Ireland, Land Transaction Tax in Wales, or Land and Buildings Transaction Tax in Scotland. Include it in your budget before making an offer.
Our home-buying cost guide can help you list the expenses. You can also prepare questions about fees for your first meeting with a mortgage broker. Keep an accessible reserve for repairs and unexpected bills after completion.
How much of your savings should you use?
A larger deposit means less borrowing. At the same interest rate and term, that reduces monthly repayments. Lower LTV can also widen the choice of mortgages or improve the rate, but compare the total cost, including fees and the repayment term. A bigger deposit does not guarantee acceptance or make every lower-rate deal cheaper overall.
Lenders often price products in LTV bands, but your deposit does not have to be a multiple of 5%. There is no general rule that someone with 17% saved should put down 15% and overpay the rest later. Compare the actual offers, the cash you need to keep and any early repayment charges. Our guide to mortgage overpayments explains the considerations.
What is the risk of negative equity?
With no deposit, there is no initial equity buffer against falling prices. Negative equity means your outstanding mortgage is greater than your home’s current value. It can make selling or remortgaging difficult. A deposit reduces that initial exposure but does not eliminate the risk.
Balance a larger deposit against keeping cash available. Using every pound as a deposit could leave you unable to cover an urgent repair or a period of lower income.
Choosing your next step
Compare a specialist no-deposit mortgage, any suitable family support and the option of saving longer. The right choice depends on eligibility, total buying costs, a manageable monthly payment and the risks you and any helper can accept. If you are buying for the first time, our first-time buyer guidance covers the wider process.
Talk to us about buying with little or no deposit to discuss your circumstances and the options worth checking.
FAQ
Frequently asked questions
Can I buy a home in the UK without a deposit?
Some specialist mortgages allow it, subject to lender and property checks. Availability varies by country: Skipton’s Track Record example covers England, Scotland and Wales, but not Northern Ireland. You still need to budget for buying costs.
Can my rent-payment history help me get a mortgage?
Yes, some lenders already consider it. They also assess income, spending, debts and credit history. Paying rent on time does not guarantee a mortgage or a particular borrowing amount.
Does a guarantor mean I do not need a deposit?
Not automatically. A repayment guarantee differs from pledging family savings or property as security, and each product has its own requirements. The helper should understand their financial exposure and obtain independent legal advice.
What costs remain if I have no deposit to pay?
Budget for legal work, any survey, moving, insurance, applicable fees and any purchase tax due. Some product fees may be added to the mortgage, increasing interest costs, while others need paying upfront. Keep a reserve for unexpected expenses.
Should I use all my savings as a deposit?
A larger deposit reduces borrowing and may improve your mortgage options, but leave money for buying costs and emergencies. Compare the actual rate, fees and term before deciding. LTV pricing bands do not require your deposit to be a multiple of 5%.