No-deposit mortgages in the UK: options and risks

It may be possible to buy a home in the UK without a deposit, but the mortgages available are specialist products with strict lender criteria. A true 100% loan-to-value (LTV) mortgage can cover all of the property value accepted by the lender. It does not remove affordability checks, property checks or the costs of buying and moving.

What is the difference between a 100% and 95% mortgage?

With a 100% LTV mortgage, the loan equals the value the lender accepts for the property. With a 95% LTV mortgage, the borrower still needs the remaining 5% as a deposit. A gifted deposit is still a deposit; it is not the same as a no-deposit mortgage.

Your property deposit is only one part of the budget. Even where a lender can lend 100% of the accepted value, you may need cash for legal work, searches, a survey, applicable property tax, moving, insurance and unexpected repairs.

How does Skipton’s Track Record mortgage work?

One current example is Skipton Building Society’s Track Record mortgage. The following points reflect its consumer information and intermediary criteria checked on 21 September 2026. They describe one lender’s product, not a general UK rule or an individual offer.

Among the published conditions are:

• Applicants must be at least 21. The current consumer information says the mortgage must end by age 75; where retirement income or timing is relevant, confirm the current approach with the lender.
• The route is for current or recent renters who have not owned a UK property in the previous three years. If you have owned property abroad, or your circumstances are unusual, ask the lender to confirm how its criteria apply.
• Applicants need evidence that rent on a UK property has been paid for at least 12 months in a row within the previous 18 months. They also need 12 months of experience paying household bills within that period; Skipton may ask for proof of those bill payments. In a joint application, rent may have been paid by one applicant or jointly; separate rental histories can be considered with evidence.
• The product can be used with no deposit or a deposit of less than 5%. At exactly 5%, Skipton says applicants should use its standard mortgage range instead.
• The maximum loan is £600,000, subject to affordability. Lending is based on the lower of the purchase price or valuation (or Home Report in Scotland), so a lower valuation can leave a cash shortfall for the buyer.
• Published property criteria include England, Scotland and Wales, not Northern Ireland or the Isle of Man. New-build houses can be considered, while new-build flats are excluded from this product.
• Applicants need no missed debt or credit-commitment payments in the previous six months and must meet the lender’s wider adverse-credit policy. Meeting that point alone does not guarantee acceptance.

Some details can differ between lender materials, including how particular income, residency, retirement or household circumstances are assessed. Do not rely on a general article for those edge cases: check the latest criteria before applying.

How are affordability, rent and the mortgage term assessed?

Rent history is evidence, not a substitute for a full lending assessment. Skipton’s intermediary criteria allow monthly mortgage payments of up to 150% of the mean rent paid over the previous six months in some circumstances, subject to affordability. That is a limit within the criteria, not an amount every applicant can borrow.

The product guide states a maximum 40-year term and an initial five-year fixed rate. A longer term can reduce the monthly payment but usually increases the total interest paid. The stated maximum loan-to-income multiple is 4.49 times annual income and up to four applicants may apply, but neither figure is an offer: income, outgoings, credit commitments and the lender’s affordability assessment can reduce the amount available.

What costs and risks remain with no deposit?

Skipton currently advertises no application or completion fee and a covered standard valuation for this product, but that does not make the purchase fee-free. A valuation is for the lender’s security and is not a full condition survey. Budget separately for conveyancing and searches, any survey, applicable property tax, moving costs, insurance, maintenance and any advice fee. MoneyHelper’s buying and moving cost guide can help you build a fuller list.

At 100% LTV, there is no initial equity buffer if property prices fall. Negative equity means the outstanding mortgage is higher than the home’s value. It can make selling or remortgaging more difficult, particularly if you need to move before the balance has reduced.

The initial fixed rate lasts five years, not the whole mortgage term. At the end of a fixed period, a new deal is not automatic: you may revert to the lender’s standard variable rate if you do nothing, and a remortgage depends on the options and affordability available then. Check whether an early repayment charge applies before making changes or overpayments. Our guides to fixed-rate mortgages and remortgaging explain the wider considerations.

It is also worth checking what type of credit search a lender will carry out at each stage. Skipton says its decision in principle uses a soft search that does not affect your score; hard searches, especially several close together, can affect your credit record.

Could family support be an alternative?

Family-assisted mortgages are different from a rent-based no-deposit product. For example, Barclays describes its Family Springboard Mortgage as a route where a borrower may not need a deposit, while a helper provides 10% security for five years, subject to the product terms. That security is not a gift: the helper’s funds can be held for longer or used towards a loss if the mortgage is not repaid or the property is sold for less than the loan. Independent legal advice is required for the helper.

Family support can therefore widen the options for some buyers, but it transfers real financial risk to someone else. Compare it carefully with saving a 5% deposit and with any mortgage available on your own circumstances.

Is a no-deposit mortgage right for you?

Start with a realistic monthly budget, including household bills, maintenance and a reserve for unexpected costs. Then compare the likely payment during and after any fixed period, the total cost of borrowing, the risks of negative equity and the alternative of saving a deposit for longer. A lender will decide based on its current criteria and your full application, not this article.

If you would like help assessing the options that may fit your circumstances, arrange a consultation with Extend Finance. We can discuss the questions to ask and the information you may need before you decide whether to apply.