100% Mortgages: Can You Really Buy With No Deposit?
The dream of homeownership often starts with a hefty roadblock: the deposit. But in 2025, there’s a new wave of mortgage options helping first time buyers skip that step entirely.
Enter: the 100% mortgage.
Yes, it’s back and for some buyers, it could be a lifeline. But there’s a bit more to it than just showing up with zero savings. Here’s everything you need to know about how no deposit mortgages work, whether they’re right for you, and what to consider before diving in.
A 100% mortgage is a home loan that covers the entire cost of the property you’re buying. That means you don’t need to put down a deposit at all. Some lenders, including April Mortgages, have started offering these products to customers.In most cases, lenders want you to contribute at least 5% of the purchase price. But with a 100% mortgage, they take on the full loan amount. It can make all the difference if your income is strong but saving a deposit has been out of reach.
They’re typically designed with first time buyers in mind, especially those who are financially stable but don’t have a deposit saved.
To qualify, you’ll usually need to show:
- A reliable track record of paying rent and bills on time
- A steady income and good affordability
- Strong credit history
- Low existing debt
Some versions may involve support from family members, either through a formal guarantor role or by offering savings or property as a form of security. Others focus on proving you can handle mortgage payments by looking at your rent history.
Let’s face it homeownership feels out of reach for many. With average property prices continuing to outpace wage growth, saving up tens of thousands for a deposit can take years.
100% mortgages are coming back into the mix as a response to that. They’re designed to bridge the gap between what people can afford each month and what they can save upfront.
But they’re not without risk. That’s why they usually come with tighter rules, higher interest rates, and are only offered to borrowers who tick a lot of boxes.
✅ The upsides:
- No deposit needed – get on the ladder sooner, without years of saving
- Repayments can be similar to rent – especially useful if you’ve already been budgeting well
- Can open up more choice – buying may be back on the table, even in high demand areas
❌ The trade offs:
- Higher interest rates – you’ll likely pay more over time
- Fewer lenders to choose from – these products are still niche
- Risk of negative equity – if house prices fall, you could owe more than your home’s worth
- Strict criteria – not a fit for everyone, especially if your income or credit is patchy
Getting one of these deals usually means going through a more detailed affordability check. Lenders will want to know:
- Your monthly income and outgoings
- Your credit report
- Your rent and bill payment history
- Any support you have from family (in some cases)
It’s not just about whether you can make the payments now, it’s about showing that you’ve already been managing a similar monthly cost, reliably.
A 100% mortgage could be a stepping stone to homeownership if you’re financially secure but can’t save fast enough to keep up with rising prices.
But they’re not one size fits all. These deals usually come with extra scrutiny, higher interest, and added risk if the property market shifts.
Talking to a mortgage expert can help you weigh up the pros, the cons, and the alternatives like family deposit options, shared ownership, or even a lower deposit deal with a more competitive rate.
At Habito, we’re here to make homebuying feel less impossible. Whether you’ve got a full deposit saved, a fiver in your ISA, or no clue where to start, we’ll show you what’s realistic, what’s available, and how to get there.
100% mortgages are one of many options. We work with over 90 lenders across the market, so if a no-deposit mortgage isn’t right for you, we’ll help you explore other options that are.
👉 Chat to a mortgage expert (for free)
Can I get a 100% mortgage with bad credit?
Unlikely. These deals are typically reserved for borrowers with clean credit histories and solid financials.
Will I need family support?
Sometimes. Some lenders will need a family member to back your mortgage, others may go purely off your rent track record.
What’s the risk of negative equity?
If property prices fall, you could owe more than the home is worth. This matters most if you plan to sell or remortgage in the short term.
Is this available on all types of property?
Often not some homes like new build flats or non standard constructions may not qualify.
Here's what you need to know before you apply for a mortgage.
What you can do to improve your chances when making an offer on a home.
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