Mortgage without a deposit (100% LTV): what it means and who it’s for

Mortgage without a deposit: the short answer

A mortgage without a deposit is usually described as a 100% loan-to-value (LTV) mortgage. In simple terms, it’s a home loan where the lender advances the full purchase price (subject to the property’s valuation and the lender’s rules), rather than you paying a lump-sum deposit upfront.

Because this increases the lender’s risk, these mortgages typically come with tighter eligibility requirements and less choice than standard deals.

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

A 100% LTV mortgage is also sometimes referred to as a track record mortgage or no-deposit mortgage.

With a 100% LTV mortgage:

• You generally do not need to provide a deposit to secure the loan.
• The lender will still assess whether the property value supports the borrowing.
• You will be expected to demonstrate a reliable financial track record, particularly around housing costs.

Who might be able to apply?

Lenders vary, but no-deposit mortgages commonly focus on three areas:

1) Your recent housing payment history

Many lenders want evidence that you have been paying rent consistently. This is often assessed as:

• No missed payments on rent and other credit commitments over a recent period
• Proof of rent payments over a sustained timeframe

In some cases, lenders may also look for evidence of regular payment of household bills, depending on the application.

2) Your overall credit and affordability

Even if you have no deposit, you still need to be able to afford the repayments. Lenders typically consider:

• Your credit history (including whether there have been missed payments)
• Your income stability and overall budget
• Existing financial commitments

3) The type of purchase and property

No-deposit mortgages are not available for every scenario. Restrictions can include:

• Loan size limits
• Property type (for example, some lenders may not offer these mortgages for certain categories of property)
• Geographical restrictions (some products do not apply to every part of the UK)

Sole applicants vs joint applicants

Some no-deposit mortgage products allow both single and joint applications, but the way rent payment evidence is assessed can differ.

Typical approaches include:

• For sole applicants, rent is usually expected to be paid consistently in your name.
• For joint applicants, lenders may accept rent paid by one applicant or jointly, provided the evidence clearly shows consistent payment.

Where rent has been paid separately, lenders may require documentation that demonstrates each applicant’s contribution and payment history.

Pros and cons of a mortgage without a deposit

Potential advantages

• No deposit hurdle: you may be able to buy without saving a large deposit.
• Access to the market: for some buyers, it can be the difference between waiting years and moving sooner.

Key drawbacks to consider

• More demanding eligibility: lenders often require a strong payment record and may scrutinise affordability closely.
• Fewer options: the range of 100% LTV products can be limited, which can affect choice.
• Higher borrowing risk: because the loan-to-value is higher, lenders may apply stricter underwriting.

Costs still apply (even if you don’t pay a deposit)

A no-deposit mortgage can help with the deposit, but it doesn’t remove the other costs of buying a home. Buyers commonly still need to plan for items such as:

• Legal fees
• Valuation and survey costs
• Stamp Duty Land Tax (where applicable)

It’s also worth remembering that lenders may require certain checks and documentation as part of the application.

Practical steps to improve your chances

1) Strengthen your credit profile

Before applying, review your credit file and address any issues that could affect lending decisions. Even where you have a strong rent payment history, lenders may still consider other credit behaviour.

2) Gather rent payment evidence early

If a product relies heavily on rent payment history, having clear documentation can make the process smoother. Keep records that show:

• Consistent rent payments
• The period required by the lender

3) Be realistic about affordability

No-deposit mortgages still require you to demonstrate that repayments are sustainable. Consider:

• Your monthly outgoings
• Any changes in income you expect
• How you would manage repayments if interest rates rise

4) Consider whether the purchase fits the product rules

Check whether the intended property and purchase circumstances align with typical restrictions (property type, location, and loan limits). If not, it may be better to explore alternative mortgage options.

Alternatives to consider if no-deposit isn’t a fit

If a 100% LTV mortgage isn’t available or doesn’t match your circumstances, there are other routes that may reduce the deposit pressure, depending on your situation. These can include mortgages with a smaller deposit, or other structured options designed for first-time buyers and home movers.

The bottom line

A mortgage without a deposit can be possible, but it’s not a universal option. It generally requires a strong payment history, affordability, and a purchase that fits the lender’s product rules. Understanding what lenders look for—especially around rent payments—helps you assess whether a 100% LTV mortgage is realistic and what you may need to prepare before applying.