No-deposit mortgages (100% LTV) for first-time buyers

For many first-time buyers, the biggest hurdle is saving a deposit. A no-deposit mortgage—often described as a 100% LTV mortgage—may, in some circumstances, allow you to borrow up to the full purchase price.

Because these mortgages carry higher lender risk, they’re not available to everyone. This guide explains what 100% mortgages are, what lenders typically look for, and the main alternatives if a 100% mortgage isn’t available.

What is a no-deposit mortgage (100% LTV)?

A no-deposit mortgage is a mortgage where the borrower does not put down a traditional cash deposit. In practical terms, it usually means the lender advances up to 100% of the property’s purchase price.

With a 100% LTV mortgage:

• You borrow a larger amount from day one
• The lender has less “buffer” if property values fall
• Your application is assessed more strictly than for standard mortgages

It’s also worth noting that some products are marketed as “0% deposit”, but may still involve other upfront costs (for example, fees, valuation costs, and any required contributions towards certain charges).

How lenders assess 100% mortgages

No-deposit mortgages are typically underwritten with a focus on repayment affordability and overall risk. While each lender’s criteria differ, common themes include:

1) Affordability and income stability

Lenders will want to see that your income can comfortably cover monthly repayments, alongside other financial commitments.

2) Credit history and existing debt

A strong credit profile can matter more for 100% LTV lending. Lenders may also look at how much debt you already have and how it affects your monthly outgoings.

3) Proof of financial reliability

Some lenders place emphasis on evidence that you can manage regular payments. For certain 100% mortgage options, rental payment history may be considered—particularly where you’ve demonstrated consistent payments.

4) Property type and value constraints

First-time buyer 100% mortgages may come with restrictions relating to:

• Property value limits
• Property type (and sometimes location)
• Condition requirements

Can first-time buyers get a 100% mortgage?

It can be possible for first-time buyers to access no-deposit mortgages, but the bar is often higher than for lower LTV options.

In practice, lenders may be more likely to consider a 100% mortgage where there is a clear, credible basis for affordability and reliability—such as stable employment, manageable debt levels, and a strong credit record.

If you’ve been renting, consistent rental payments can sometimes strengthen an application for certain products.

Pros of no-deposit (100% LTV) mortgages

A 100% mortgage can be attractive because it may help you get onto the property ladder sooner.

Potential advantages include:

• No need to wait years to save a deposit
• Start building equity from day one (subject to property value changes)
• More time spent living in your own home rather than renting
• In some situations, you may be able to avoid tying up savings in a deposit—though you’ll still need funds for costs like legal work, surveys, and moving expenses

Cons and risks to consider

No-deposit mortgages can come with trade-offs. Understanding these helps you decide whether a 100% LTV mortgage is genuinely the right fit.

1) Higher monthly repayments

Borrowing more generally means higher repayments than a similar mortgage with a deposit.

2) Fewer options and stricter criteria

100% mortgages aren’t as widely available as standard deals, and lenders may apply tighter underwriting.

3) Negative equity risk

If property values fall, a 100% LTV mortgage can increase the risk of owing more than the property is worth.

4) Remortgaging can be harder later

If your circumstances change (income, credit profile, or affordability), moving to a different deal can be more challenging at higher LTVs.

5) Limited flexibility if your situation changes

Job loss, reduced income, or unexpected expenses can put pressure on affordability—especially where repayments are higher.

Alternatives to no-deposit mortgages (100% LTV)

If a 100% mortgage isn’t available, there are other ways to buy with a smaller deposit.

1) Low-deposit mortgages

Even a modest deposit can widen the range of lenders and products available. It can also reduce the loan-to-value percentage, which may improve your options.

2) Shared ownership

Shared ownership can allow you to purchase a share of a property and pay rent on the remainder. It’s designed to reduce the upfront deposit requirement compared with buying outright.

3) Family-assisted mortgages / guarantor-style support

Some arrangements involve family support, such as:

• A family member acting as a guarantor
• Using family-held assets in a way that reduces lender risk

These options can help in certain cases, but they can also create financial commitments for the supporter, so it’s important to understand the implications clearly.

4) Using a Right to Buy discount (where applicable)

For eligible buyers, a Right to Buy discount can sometimes be treated as the effective “deposit” element, depending on how the transaction is structured and how the lender assesses the purchase.

5) Buying a less expensive property

Reducing the purchase price can make it easier to save a deposit and may improve affordability.

What to prepare before applying

Because 100% LTV lending is more selective, preparation can make a difference. Consider gathering:

• Proof of income (and evidence of stability where relevant)
• Details of existing debts and monthly commitments
• Information to support your credit profile
• If applicable, evidence of consistent rental payments
• Estimates for upfront costs (legal fees, surveys/valuations, and any other purchase-related expenses)

Is a 100% mortgage the right choice?

A no-deposit mortgage can help you buy sooner, but it’s not automatically the best option. The right decision depends on:

• Whether repayments are affordable now and if circumstances change
• Your ability to manage higher borrowing over the long term
• How comfortable you are with the risks associated with higher LTV
• The availability of alternatives that may offer more flexibility

Key takeaways

• No-deposit mortgages are usually 100% LTV products and can be harder to obtain than standard mortgages.
• Lenders typically focus on affordability, credit profile, and overall risk.
• Rental payment history may be considered for some 100% mortgage options.
• The main trade-offs are often higher repayments, stricter criteria, and increased risk if property values fall.
• If a 100% mortgage isn’t available, low-deposit mortgages, shared ownership, and family-assisted options can be practical alternatives.