What is negative equity?

Negative equity is when the value of your home drops below the amount you still owe on your mortgage. For example, if you buy a home for £200,000 with a 100% mortgage and its value falls to £190,000, you would be in £10,000 of negative equity. This can make it difficult to sell your home or remortgage to a new deal.

Do I need a perfect credit score for a 100% mortgage?

While a perfect score isn't essential, a strong credit history is crucial. Because lenders see these mortgages as higher risk, they need to be confident you can manage your finances responsibly. A history of consistent, on-time payments for all your commitments is one of the most important factors.

Are there really no-deposit mortgages without family help?

Yes, the main one available currently is Skipton Building Society's Track Record mortgage. It's specifically designed for renters and uses your history of paying rent reliably to prove you can afford the mortgage payments, removing the need for a family guarantor or savings.

Can I get a 100% mortgage if I'm self-employed?

It can be more challenging, but it's not impossible. Lenders will want to see a stable and predictable income, which typically means providing two to three years of accounts. The key is demonstrating that your income is reliable enough to handle the mortgage payments. As a broker, I can help navigate the specific requirements of each lender.

What is negative equity?

Negative equity is when the value of your home drops below the amount you still owe on your mortgage. For example, if you buy a home for £200,000 with a 100% mortgage and its value falls to £190,000, you would be in £10,000 of negative equity. This can make it difficult to sell your home or remortgage to a new deal.

Do I need a perfect credit score for a 100% mortgage?

While a perfect score isn't essential, a strong credit history is crucial. Because lenders see these mortgages as higher risk, they need to be confident you can manage your finances responsibly. A history of consistent, on-time payments for all your commitments is one of the most important factors.

Are there really no-deposit mortgages without family help?

Yes, the main one available currently is Skipton Building Society's Track Record mortgage. It's specifically designed for renters and uses your history of paying rent reliably to prove you can afford the mortgage payments, removing the need for a family guarantor or savings.

Can I get a 100% mortgage if I'm self-employed?

It can be more challenging, but it's not impossible. Lenders will want to see a stable and predictable income, which typically means providing two to three years of accounts. The key is demonstrating that your income is reliable enough to handle the mortgage payments. As a broker, I can help navigate the specific requirements of each lender.

Back to First Time Buyers

Can I Get a 100% Mortgage in the UK?

The idea of buying your first home without a deposit might sound too good to be true, but it can be possible. Let's explore how.

What Exactly is a 100% Mortgage?

A 100% mortgage, often called a 'no-deposit mortgage', is exactly what it sounds like: a mortgage that covers the full cost of the property you're buying. This means you wouldn't need to have saved up a deposit, which is often the biggest hurdle for first-time buyers.

If you've been diligently saving but feel like house prices are pulling away faster than you can build a deposit, the idea of a 100% mortgage can be incredibly appealing. It offers a potential fast track onto the property ladder.

A Quick Trip in the Mortgage Time Machine

Before the financial crisis in 2008, 100% mortgages were quite common. However, when the property market crashed, many people who had taken out these mortgages found themselves in 'negative equity' (owing more than their house was worth). Lenders became much more cautious, and 100% mortgages vanished almost overnight. For over a decade, they were the stuff of legend. Now, they're starting to make a careful, limited comeback, but in a very different form.

Routes to a No-Deposit Mortgage in 2026

Today's 100% mortgages are designed with more security in mind. They generally fall into two camps: those for proven renters, and those with family support.

For Proven Renters: The Track Record Mortgage

The most talked-about option is from Skipton Building Society. Their 'Track Record' mortgage is a game-changer for tenants.

How it works:

Instead of a deposit, Skipton uses your history of paying rent as proof you can afford a mortgage. If you can show at least 12 months of on-time, full rental payments (and meet their other criteria), you could borrow up to 100% of the property value. It's a way of saying, "You've proven you can pay this much to a landlord, so we trust you to pay it to us."

With Family Support: The 'Bank of Mum & Dad'

Most other 100% mortgage options involve getting a helping hand from your family. These are often called 'family assist' or 'guarantor' mortgages.

Common types include:

Family Springboard: A family member deposits 10% of the property price into a savings account with the lender. This acts as security. After a set number of years (e.g., 5), they get their money back, usually with interest.
Guarantor Mortgage: A parent or close relative legally agrees to cover your mortgage payments if you can't. Their own income or property is on the line, so it's a big commitment.
Joint Borrower, Sole Proprietor: A family member adds their income to your application to help you borrow more, but they aren't a legal owner of the property.

Is a 100% Mortgage a Good Idea? The Pros & Cons

Getting onto the property ladder without a deposit is a huge win, but it's important to weigh up the risks.

The Pros

Get on the ladder faster: The most significant benefit. You can stop waiting and start your homeownership journey now.
Stop paying rent: Your monthly payments start building your own equity, not your landlord's.
Potential for property value growth: If the market rises, you start building equity immediately.

The Cons

Negative Equity Risk: This is the big one. If house prices fall, even by a small amount, you could owe more than your home is worth. This makes it very hard to move or remortgage.
Higher Interest Rates: Lenders charge more for 100% mortgages because they are taking on all the risk.
Stricter Criteria: You'll need a strong credit history and stable income to be accepted.
Limited Choice: Only a handful of lenders offer these products, so there's less competition.

What Are the Alternatives?

A 100% mortgage isn't the only path. It's worth considering these other routes to homeownership.

Save a 5% Deposit

The most common route for first-time buyers. A 5% deposit opens up a much wider range of lenders and more competitive interest rates. Using a Lifetime ISA (LISA) can give your savings a 25% boost from the government.

Gifted Deposit

If your family can't commit to a guarantor mortgage, they might be able to gift you the deposit instead. This is a very common way for first-time buyers to get on the ladder and is accepted by most lenders.

Shared Ownership

This government scheme allows you to buy a share of a property (between 10% and 75%) and pay rent on the rest. You only need a deposit for the share you're buying, making it much more accessible.

Is a 100% Mortgage Right for You?

Deciding whether to pursue a 100% mortgage depends entirely on your personal situation. If you have a solid rental history, a stable job, and a good credit score, but the deposit is the only thing holding you back, it could be a fantastic opportunity. This is especially true here in Cheshire, where property prices can make saving a large deposit feel like a marathon.

However, you have to be comfortable with the risks, particularly negative equity. As a mortgage broker based in Alsager, my job is to help you understand all the options, not just one. We can sit down, look at your circumstances, and compare a 100% mortgage against a traditional 95% mortgage or other schemes. It's about finding the right fit for you, not just finding any mortgage.

Your 100% Mortgage Questions Answered

Got Questions About No-Deposit Mortgages?

Whether you're a renter, have family support, or just want to explore your options, I'm here to help. Drop me a message and we can arrange a chat.

An Important Note

Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage approval is not guaranteed and is subject to lender criteria and your personal circumstances.

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