100% Mortgages (No Deposit) - Guarantor Mortgages | moneyfacts.co.uk

100% Mortgages - No Deposit

  - If you have no deposit for a mortgage, there are still options. They're rare, but they do exist. Compare all the mortgages available to you with 100% LTV.
  • £
  • £ 100% LTV
  • yrs

Refine your search

Searching all 5116 mortgages, the following best match your search criteria and are displayed in order of lowest initial rate.

Your Mortgage Search

Compare
Up to 3 products
side by side
Rate APRC Mortgage Type Product Fees Initial Monthly Payment Total Amount Repayable Apply Today

2.75% reverting to 2.99% 3.0% Fixed to 31/07/2021 None £1,153.28 £353,360 Details...
Speak to an Adviser
Representative Example: 37 monthly payments of £1153.28 and 263 monthly payments of £1180.83. Total interest of £103,230, valuation fees of £0 and product fees of £0.

3.19% reverting to 5.24% 4.8% Discounted Variable to 3 Years £850 £1,210.38 £431,729 Details...
Speak to an Adviser
Representative Example: 36 monthly payments of £1210.38 and 264 monthly payments of £1465.72. Total interest of £180,524, valuation fees of £205 and product fees of £850.

3.24% for term 3.3% Discounted Variable for Term None £1,216.97 £365,541 Details...
Speak to an Adviser
Representative Example: 300 monthly payments of £1216.97. Total interest of £115,091, valuation fees of £275 and product fees of £0.

3.24% for term 3.3% Discounted Variable for Term None £1,216.97 £365,541 Details...
Speak to an Adviser
Representative Example: 300 monthly payments of £1216.97. Total interest of £115,091, valuation fees of £275 and product fees of £0.

3.29% reverting to 5.29% 4.9% Discounted Variable to 3 Years £1,200 £1,223.58 £434,836 Details...
Go to Site
Representative Example: 36 monthly payments of £1223.58 and 264 monthly payments of £1473.93. Total interest of £183,166, valuation fees of £270 and product fees of £1200.

3.40% reverting to 4.95% 4.5% Discounted Variable to 4 Years £199 £1,238.19 £418,564 Details...
Speak to an Adviser
Representative Example: 48 monthly payments of £1238.19 and 252 monthly payments of £1423.52. Total interest of £168,160, valuation fees of £0 and product fees of £199.

3.40% reverting to 4.95% 4.5% Discounted Variable to 4 Years £199 £1,238.19 £418,564 Details...
Speak to an Adviser
Representative Example: 48 monthly payments of £1238.19 and 252 monthly payments of £1423.52. Total interest of £168,160, valuation fees of £0 and product fees of £199.

3.49% reverting to 5.09% 4.8% Discounted Variable to 3 Years £199 £1,250.22 £428,693 Details...
Speak to an Adviser
Representative Example: 36 monthly payments of £1250.22 and 264 monthly payments of £1450.97. Total interest of £178,064, valuation fees of £260 and product fees of £199.

3.54% reverting to 5.09% 4.6% Discounted Variable to 5 Years £199 £1,256.93 £420,685 Details...
Speak to an Adviser
Representative Example: 60 monthly payments of £1256.93 and 240 monthly payments of £1436.00. Total interest of £170,056, valuation fees of £260 and product fees of £199.

3.74% reverting to 5.09% 4.7% Discounted Variable to 5 Years £199 £1,283.97 £423,570 Details...
Speak to an Adviser
Representative Example: 60 monthly payments of £1283.97 and 240 monthly payments of £1441.26. Total interest of £172,941, valuation fees of £260 and product fees of £199.

3.79% reverting to 5.09% 4.7% Fixed to 5 Years £199 £1,290.78 £424,290 Details...
Speak to an Adviser
Representative Example: 60 monthly payments of £1290.78 and 240 monthly payments of £1442.56. Total interest of £173,661, valuation fees of £260 and product fees of £199.

3.89% reverting to 5.24% 5.0% Fixed to 30/06/2021 £850 £1,304.46 £438,080 Details...
Speak to an Adviser
Representative Example: 36 monthly payments of £1304.46 and 264 monthly payments of £1476.95. Total interest of £186,875, valuation fees of £205 and product fees of £850.

3.99% reverting to 5.09% 4.8% Fixed to 5 Years £199 £1,318.21 £427,174 Details...
Speak to an Adviser
Representative Example: 60 monthly payments of £1318.21 and 240 monthly payments of £1447.72. Total interest of £176,545, valuation fees of £260 and product fees of £199.

5.18% reverting to 5.73% 5.9% Fixed to 2 Years £1,298 £1,487.81 £469,483 Details...
0333 920 8356
Representative Example: 24 monthly payments of £1487.81 and 276 monthly payments of £1564.70. Total interest of £217,565, valuation fees of £480 and product fees of £1298.

5.18% reverting to 5.73% 5.9% Fixed to 2 Years £1,298 £1,487.81 £469,483 Details...
0333 920 8356
Representative Example: 24 monthly payments of £1487.81 and 276 monthly payments of £1564.70. Total interest of £217,565, valuation fees of £480 and product fees of £1298.
Now showing 1 to 15 of 20 results
Disclaimer:

Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

 

On this page:

  1. What are 100% mortgages?
  2. Things to watch out for
  3. How does a 100% mortgage differ from a guarantor mortgage?
  4. Alternatives

What are 100% mortgages?

100% loan-to-value (LTV) mortgages allow you to borrow 100% of the value of the property you’re after – so a loan of £100,000 on a £100,000 property, for example – which can make 100% mortgages life-savers for first-time buyers. With no deposit required, you won’t have to spend ages scraping together 5% or more of the value of the home you’re interested in.

This has certain obvious advantages, most prominently the fact that you’d be able to buy your first home without having to hand over a whole lot of cash upfront. Your savings can then be used towards other costs, such as moving, renovations and furniture.

For those without savings, getting a mortgage this way also means that you can stop renting and start using those monthly payments to start paying off your mortgage instead. This can make a big difference when rents are higher than mortgage repayments and house prices are still on the rise.

Some current homeowners may also be able to benefit from a no-deposit mortgage if the price of their home has gone down so much that they now have zero or even negative equity. Without a 100% mortgages, these borrowers would likely be ‘mortgage prisoners’ trapped in a deal with a high interest rate or unable to move home.

Since the financial crisis, mortgage providers are naturally a lot more cautious when it comes to offering mortgages without a deposit. That’s why those who aren’t already homeowners will most certainly require a guarantor, who will need to either put their house up as collateral, or put a certain amount of savings into a special low/no-interest paying savings account for a set number of years.

Some borrowers may be able to put the current equity in their house up as security without the need for a guarantor – an option not available to first-time buyers. Either way, the borrower will have to have an excellent credit record, however, to maximise their chances of being accepted by a lender. That’s because these products come with quite a risk to lenders and borrowers alike, with any drop in house price resulting in negative equity. To try and minimise some of the risk, lenders will want borrowers they can trust to keep up with repayments; those with a poor credit history will be more likely to default on their loan.

For a while after the financial crisis, there were no 100% mortgages available. While providers have since regained faith in them, there are still not many, and those that are available come with strict criteria, which is why it’s important to do your research before committing to such a product.

Things to watch out for

An important part of doing your research is knowing what the risks are of taking out a 0% deposit mortgage. We’ve already talked about one risk to the borrower, namely that they can drop into negative equity and end up getting trapped in an unfavourable deal. As one of the main reasons to take out a 100% mortgage is to remortgage out of a deal with negative equity, you wouldn’t have much wiggle-room if house prices fall even further.

If you currently have a property that is in negative equity, i.e. one which is worth less than the mortgage secured on it, you may find it very hard to sell or remortgage. As most lenders will be reluctant to let anyone with negative equity switch to a new deal, you will likely end up on your lender’s standard variable rate. One way to get out of this is to overpay your mortgage. However, not everyone can afford to do this, which is where negative equity mortgages can come in.

Given their status as mortgages for those who don’t have any other option, it’s not surprising to find that these products tend to come with higher interest rates and fees than other mortgage types. Those with a lack of savings should also not forget that there will still be other costs to pay upfront, such as stamp duty and conveyancing fees for those moving. There may also be early repayment charges to pay for those remortgaging.

The risks for guarantors should be considered, too. While it may seem to be a small favour, signing up to be a guarantor, it’s a very generous act from a family member or close friend that could jeopardise their savings or even their home. Before you become a guarantor, it’s therefore worth thinking about how much you trust the person you’re helping to keep up with their repayments and not default on their deal.

How does a 100% mortgage differ from a guarantor mortgage?

If you don’t know what a guarantor mortgage is, it’s a special product that can help those that would otherwise be unable to buy a house. As with certain 100% mortgages, you will require someone to act as a guarantor. This person will have to put up their property or savings as security. No-deposit mortgages that require a guarantor to set their savings aside into a special account may also be referred to as family offset mortgages, as it’s usually a family member who’s willing to offset their savings.

These products are generally geared towards first-time buyers who want to take that first step onto the property ladder with some help from family or a close friend. They may or may not cover 100% of the value of the home. 100% LTV mortgages, in contrast, may be used by first-time buyers, but are geared more towards those in negative equity who are looking to remortgage or move house, although there are some products available to first-time buyers.

Unlike 100% mortgages, guarantor mortgages tend to require a guarantee until a certain percentage of the mortgage has been paid off. So, for instance, your parents would have their house or savings up as collateral until you’ve paid off 25% of the mortgage. At this time, it would be a good idea to remortgage to a 75% LTV mortgage deal, given their lower rates.

In short, while there is certainly a lot of overlap, 100% mortgages should be considered more by current homeowners, while guarantor mortgages are more suitable for first-timers. Note that both mortgage types may be hard to find and even harder to get, and will therefore not be the most competitive deals on the market.

Alternatives

While it’s important to compare the few 100% mortgages available to make sure you are getting the best possible deal, it may be a good idea to also look at alternatives.

If you are a homeowner who’s lost some of the value in their home, you may be able to remortgage to a higher-LTV mortgage that is still below 100%. Likewise, first-time buyers without someone to act as their guarantor will have to stump up a 5% deposit, but will also be able to get much better deals as a result. Take a look at the best first-time buyer mortgages or use our calculator to find those deals that most closely fit your situation while still being competitive.

For those with family members that are willing to help in any way possible, there’s another option. That savings pot they are happy to put up as collateral may also be used as a gifted deposit to help get a more competitive deal. Some may even use equity release to help their children get together a decent deposit.

There are a few things to watch out for when gifting a deposit, however. You will need to follow the correct procedure and be able to show that the help is a gift, not a loan. This will likely require the help of a solicitor, so don’t wait too long to ask for advice and arrange things, or your property purchase might get delayed or even entirely derailed.

For those without generous benefactors, there’s always the Help to Buy or Lifetime ISA schemes to consider. These can allow you to save up for that deposit a bit faster thanks to a Government bonus of 25%. They do come with restrictions, though, so remember to read up on them before committing.

What next?

Take a look at the top 95% LTV or 90% LTV mortgages

Read our guides on the Lifetime ISA, the Help to Buy ISA and loan schemes, and our tips on getting a deposit

 

Mortgage Calculators

How much will I pay monthly?How much will I pay monthly?
Work out how much your monthly mortgage repayments will be.

How much do I need to borrow?How much do I need to borrow?
Work out how much money in total you will need to borrow in order to get a mortgage.

Lowest two to five-year mortgage gap in five years
Lowest two to five-year mortgage gap in five years

The gap between the average rate for a mortgage that is fixed over two years and one that is fixed o... More

Career moves drive property market
Career moves drive property market

The most popular reason for moving home this quarter was work, as 23% said they were looking to move... More

Pitfalls of first-time buying
Pitfalls of first-time buying

While many first-time buyers may think that getting their deposit together is the hardest part of ta... More

Mortgage tracker rates see fall
Mortgage tracker rates see fall

The forthcoming Mortgage Treasury Report can reveal that the average two-year tracker rate has falle... More

Long-term remortgaging back in demand
Long-term remortgaging back in demand

The latest figures from LMS show that demand for five-year fixed rate remortgages is back after a si... More

How to choose an estate agent
How to choose an estate agent

Find out how to choose the best estate agent in this guide. We look at practical ways to shortlist, ... More

Mortgage valuations are not in-depth surveys
Mortgage valuations are not in-depth surveys

Mortgage valuations shouldn’t be confused with a property survey. You should consider having a surve... More

You and your mortgage
You and your mortgage

What is your relationship with your mortgage? Are you repaying it off as quickly as you can – are yo... More

AA’s first-time buyer mortgage enters chart
AA’s first-time buyer mortgage enters chart

AA Mortgages has launched a new mortgage for first-time buyers (FTBs), which offers a competitively ... More

West Brom’s 2-year FTB mortgage now number 2
West Brom’s 2-year FTB mortgage now number 2

West Brom BS has reduced the rate on its two-year fixed first-time buyer (FTB) mortgage by 0.15%, wh... More

Virgin Money improves three-year mortgage
Virgin Money improves three-year mortgage

Virgin Money has reduced the rate on one of its three-year mortgages by 0.02%. This deal offers the ... More

Tesco’s FTB mortgage rockets into first place
Tesco’s FTB mortgage rockets into first place

Tesco Bank has reduced selected mortgage rates, which sees its five-year fixed first-time buyer (FTB... More

Hinckley & Rugby tops discounted mortgage chart
Hinckley & Rugby tops discounted mortgage chart

Hinckley & Rugby BS has reduced the rate on its discounted variable rate mortgage by 0.25%, as a res... More

Close