100% Mortgages - No Deposit | 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.
 
If you are unsure or would like some advice, then you can speak to our trusted mortgage advisors
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Searching all 5315 mortgages, the following best match your search criteria and are displayed in order of lowest initial rate.

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Rate APRC Mortgage Type Product Fees Initial Monthly Payment Total Amount Repayable Apply Today

2.75% reverting to 4.24% 3.9% Fixed to 31/10/2021 None £1,153.28 £392,360 Details...
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Representative Example: 38 monthly payments of £1153.28 and 262 monthly payments of £1329.79. Total interest of £142,230, valuation fees of £0 and product fees of £0.

3.09% reverting to 5.09% 4.7% Discounted Variable to 3 Years £499 £1,197.26 £425,376 Details...
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Representative Example: 36 monthly payments of £1197.26 and 264 monthly payments of £1444.49. Total interest of £174,447, valuation fees of £260 and product fees of £499.

3.09% reverting to 5.09% 4.7% Discounted Variable to 3 Years £499 £1,197.26 £425,376 Details...
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Representative Example: 36 monthly payments of £1197.26 and 264 monthly payments of £1444.49. Total interest of £174,447, valuation fees of £260 and product fees of £499.

3.19% reverting to 5.24% 4.8% Discounted Variable to 3 Years £850 £1,210.38 £431,729 Details...
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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...
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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...
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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 £434,851 Details...
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Representative Example: 36 monthly payments of £1223.58 and 264 monthly payments of £1473.93. Total interest of £183,166, valuation fees of £285 and product fees of £1200.

3.29% reverting to 5.59% 5.1% Discounted Variable to 3 Years £199 £1,223.58 £444,276 Details...
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Representative Example: 36 monthly payments of £1223.58 and 264 monthly payments of £1513.65. Total interest of £193,652, valuation fees of £225 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...
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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...
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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.

3.69% reverting to 5.09% 4.9% Fixed to 3 Years £499 £1,277.18 £430,795 Details...
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Representative Example: 36 monthly payments of £1277.18 and 264 monthly payments of £1454.12. Total interest of £179,866, valuation fees of £260 and product fees of £499.

3.89% reverting to 5.24% 5.0% Fixed to 31/10/2021 £850 £1,304.46 £437,442 Details...
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Representative Example: 38 monthly payments of £1304.46 and 262 monthly payments of £1475.83. Total interest of £186,237, valuation fees of £205 and product fees of £850.

3.89% reverting to 5.59% 5.0% Fixed to 5 Years £199 £1,304.46 £440,356 Details...
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Representative Example: 60 monthly payments of £1304.46 and 240 monthly payments of £1506.10. Total interest of £189,732, valuation fees of £225 and product fees of £199.

3.99% reverting to 5.09% 4.8% Fixed to 5 Years £499 £1,318.21 £427,474 Details...
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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 £499.

4.89% reverting to 5.09% 5.2% Discounted Variable to 3 Years £999 £1,445.50 £442,035 Details...
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Representative Example: 36 monthly payments of £1445.50 and 264 monthly payments of £1471.85. Total interest of £190,606, valuation fees of £260 and product fees of £999.
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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. Can you get a mortgage with no deposit?
  2. What are 100% mortgages?
  3. How to get a mortgage with no deposit
  4. Guarantor mortgages
  5. 100% mortgages for first-time buyers with no deposit
  6. 100% mortgages for those in negative or low equity
  7. Risks of 100% mortgages for the borrower
  8. The cost of buying a home
  9. Alternatives

Can you get a mortgage with no deposit?

Yes! There are some mortgages available that don’t require you to save for a deposit. They are rare, but do exist. To get a 100% mortgage, you will need someone to act as a guarantor, by offering their property or savings up as security.

What are 100% mortgages?

100% mortgages allow you to borrow the full amount needed to buy your home, without paying a deposit. However, there are strict criteria you need to meet to get accepted for a 100% mortgage, which vary from lender to lender.

How to get a mortgage with no deposit

To get a mortgage with no deposit, you need someone willing to either put up their own property as collateral or to put some (or all) of their savings in a special account to offset your mortgage against.

Guarantor mortgages

A guarantor mortgage is a special product that can help those that would otherwise be unable to, to buy or remortgage their 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 (also known as a ‘family offset mortgage’).

To be a guarantor you must:

  • Be a homeowner with at least 30% equity in your home
  • Have an income high enough to cover the mortgage payments in the event that the borrower cannot or does not pay, while also covering your own outgoings (e.g. your own mortgage, bills and other living costs)
  • Be able to demonstrate your ability to meet credit agreements by having a strong credit record that shows lenders you are a ‘safe bet’
  • Be willing to show proof that you have taken legal advice, as many lenders require this as part of the application process
  • Beware that there may also be an age restriction on those willing to act as guarantor

What are the risks of being a guarantor?

As the guarantor’s home or savings are put up as collateral against the loan, therefore the biggest risk for a guarantor would be losing their home or savings if the main borrower does not meet their obligations. This is why it’s really important that you weigh up your options before agreeing to become a guarantor for someone, whether it’s a trusted family friend or your beloved son or daughter.

Property as security

  • If you are considering acting as guarantor, you do not need to put the entire value of your home up as security, but will be required to put up a percentage of the loan amount, usually around 25%
  • A legal charge will be registered on your property, usually until a certain percentage of the mortgage has been paid off
  • If you have a mortgage on your own home, the 100% mortgage lender may impose a maximum combined loan-to-value on your original mortgage and the new charge amount – this is likely to be around 65%

Savings as security

  • If you are considering acting as guarantor by offering up your savings as collateral, you will likely need to put a certain percentage of the value of the property into a specialist savings account for a set number of years
  • The savings account is unlikely to offer much or any interest on the amount held in it (though some products do allow it to be used to offset the interest on the borrower’s mortgage)
  • You will be unlikely to be allowed to withdraw your savings during the term of the mortgage
  • The lender has a legal charge over your savings and could use some or all of the money if the property is repossessed and sells for a loss

100% mortgages for first-time buyers with no deposit

Can first-time buyers get a 100% mortgage? Yes, there are some mortgages available for first-time buyers, which don’t require the borrower to put up a deposit. There aren’t many, but they do exist!

There are certain advantages to no-deposit mortgages, 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.

100% mortgages for those in negative or low equity

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

Risks of 100% mortgages for the borrower

We’ve covered the risks of becoming a guarantor, but what about the risks associated with these types of mortgage for the borrower? Well, the greatest risk to the borrower is if property values fall and the home they’ve borrowed 100% of the money to buy falls in value and they now owe more than 100% of its value. This is known as being in negative equity.

This is a problem, but only if you are considering remortgaging or moving home (assuming you can keep up the regular monthly repayments). 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.

It should be noted that if you fail to keep up with your mortgage repayments then your home could be repossessed, and if you have someone acting as guarantor then their savings or home could also be used to help pay off your debt.

The cost of buying a home

If you’re considering taking out a mortgage without using a deposit, you may not have much in the way of savings, so it’s important to understand all the costs associated with buying a home, making sure you can meet them. It is impossible to list all the costs you may have to meet as these are likely to vary, but there are some general things to keep in mind.

Given their status as mortgages for those who don’t have any other option, it’s not surprising to find that 100% mortgage products tend to come with higher interest rates and fees than other mortgage types. Those with a lack of savings should also remember 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.

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 their loved ones get on the property ladder 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

 

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