100% LTV Mortgages (No-Deposit Mortgages) for First-Time Buyers

For many first-time buyers, the biggest obstacle isn’t income—it’s the deposit. A 100% loan-to-value (LTV) mortgage, often referred to as a no-deposit mortgage, is designed for exactly this situation: borrowing up to the full purchase price of the property.

This guide explains what 100% LTV mortgages are, the common structures you may come across, the potential advantages and risks, and alternatives to consider.

Important: A mortgage is a long-term financial commitment. If you do not keep up repayments, your home may be at risk of repossession.

What is a 100% LTV mortgage?

A 100% LTV mortgage is a mortgage where the lender advances the full amount needed to buy the property (so you don’t put down a deposit in the usual way).

In practice, lending 100% can involve additional risk for the lender. As a result, many 100% LTV products are offered with extra conditions or support, which can include (but is not limited to) a guarantor arrangement.

Why 100% LTV mortgages are often linked to guarantors

With no deposit, you may have little or no equity in the property from day one. If property values fall, the loan balance can be higher than the property value.

To manage that risk, lenders may require security from a third party—most commonly a guarantor. This can involve a legal charge over the guarantor’s property (or another form of security), intended to protect the lender if repayments are not met.

Because the guarantor is exposed to risk, these arrangements need careful consideration by everyone involved.

Common types of 100% LTV (no-deposit) mortgages

While the headline is “100%”, the way the lender protects itself can vary. The most common structures include:

1) Guarantor mortgages

A guarantor mortgage uses a family member or other suitable person who agrees to cover the repayments if you cannot.

In many cases, the guarantor’s assets may be used as additional security. This can make the product accessible for some borrowers, but it also means the guarantor may face serious consequences if things go wrong.

2) Family offset mortgages

With a family offset mortgage, a family member keeps savings in an account linked to the mortgage. Those savings can be used to reduce the interest charged (by offsetting the mortgage balance).

This structure can appeal where a borrower wants no deposit but the family can provide savings support rather than a guarantor arrangement.

3) Springboard mortgages

A springboard mortgage is designed for buyers who may receive deposit support from family, but want to avoid the deposit being tied up in the lender’s security in the same way as a classic guarantor.

Typically, the family support is held in a “ring-fenced” arrangement and the buyer gradually repays what is owed, aiming to remove the need for the lender to rely on a traditional deposit.

Benefits of 100% LTV mortgages for first-time buyers

Enter the market sooner

The most obvious advantage is removing the deposit barrier. For some first-time buyers, that can mean buying earlier than they otherwise could.

Potentially lower upfront cash pressure

If you do not need to save a deposit, you may be able to direct funds towards other costs associated with buying a home (such as moving expenses, initial repairs, or furnishing).

Access to a wider range of properties

A deposit can limit the price you can target. With 100% LTV lending, the purchase price ceiling may be higher than it would be with a smaller loan-to-value.

Key drawbacks and risks to consider

Higher cost compared with lower LTV lending

Because the lender is taking on more risk, 100% LTV mortgages often come with higher interest rates than products requiring a deposit.

Fewer lenders and less product choice

No-deposit lending is more specialised. That can mean limited availability and fewer options to compare.

Stricter underwriting

Lenders may apply tighter affordability and credit checks, and may require additional support (such as a guarantor) depending on the borrower’s profile.

Negative equity risk

If property values fall, you may owe more than the property is worth. This can make it harder to sell or remortgage in the future.

Increased financial pressure

With no deposit equity, there is less “buffer” if circumstances change. Job loss, illness, or unexpected expenses can make repayments harder to manage.

What lenders usually look at (practically)

While each lender’s criteria differs, 100% LTV applications commonly focus on:

• Affordability: whether repayments are sustainable under realistic stress scenarios
• Credit profile: past borrowing behaviour and current commitments
• Income stability: type of employment and consistency of earnings
• Property suitability: valuation and whether the property meets lending standards
• Additional support (where required): guarantor strength, security, and the legal structure

Alternatives to 100% LTV mortgages

If a no-deposit mortgage feels risky or the guarantor arrangement isn’t suitable, there are other ways to reduce the deposit burden or improve affordability.

95% LTV (or other low-deposit) mortgages

Even a small deposit can improve lender confidence and may open up more competitive options.

Shared ownership

Shared ownership can reduce the upfront cost by purchasing a share of the property and paying rent on the remainder.

Using savings strategies (where possible)

For some buyers, building a deposit over time can reduce the overall cost of borrowing and may simplify future refinancing.

Family support without a full guarantor structure

Depending on circumstances, some buyers may be able to structure family support in ways that reduce risk to the guarantor compared with a traditional guarantor mortgage.

Is a 100% LTV mortgage right for you?

A 100% LTV mortgage can be a practical route onto the property ladder when deposit savings are the main barrier. However, it’s important to weigh:

• the ongoing affordability of repayments
• the impact of higher interest rates
• the risk to any guarantor or family member involved
• how you would cope if property values fall or your circumstances change

Next steps (information to gather)

Before deciding, it helps to assemble key information such as:

• your target purchase price and estimated total buying costs
• your monthly income and outgoings
• any existing debts or credit commitments
• whether family support is available, and what form it could take
• your plan for how you would manage repayments over the long term

This preparation can make it easier to compare options and understand which route best matches your circumstances.

Related first-time buyer guides

If you’re exploring deposit-light options, it can be useful to review other guides in the first-time buyer mortgage range, including lower LTV mortgages and shared ownership.