Our Mortgage-Approval Guarantee - We're so confident in our service, we guarantee it - or £100 back* Read more Chevron
Arrow Arrow
Scroll to top

No Deposit Mortgages Are On Their Way Back

No Deposit Mortgages Are On Their Way Back
Mark Langshaw

Author: Mark Langshaw - Content Manager

Updated: June 30, 2022

Prospective mortgage borrowers with no deposit to their name could soon have a new pathway to homeownership following confirmation that 100% mortgages are on the way back.

One UK lender has just announced that they are launching a no deposit mortgage product later this year, aimed at filling the void left behind when the Help to Buy scheme ends.

This zero deposit mortgage offering is set to become the only deal of its kind on the market, but the eligibility criteria and interest rates for it are yet to be announced. While deposit requirements are a barrier for many aspiring homeowners, affordability is an equally steep mountain to climb for some struggling families, and high rates might deter others.

In any case, the launch of a new 100% mortgage will increase the range of options for borrowers who are unable to make a down payment, but it’s important to keep in mind that it won’t be the only way to get onto the property ladder with no deposit, or a very limited deposit.

There are alternatives to consider. Firstly, those who have family support could look into guarantor mortgages, and it’s often possible to get a no deposit mortgage when buying a council or housing association property through the government’s Right to Buy scheme.

Then there are a range of low deposit mortgage options available. Although the Help to Buy deadline is on the horizon, some lenders still offer 95% mortgages under the right circumstances. Before putting all of your eggs into the ‘no deposit’ basket, it’s worth exploring whether you could get a better deal by hanging fire until you have a small deposit saved.

There are mortgage brokers who specialise in helping customers with little-to-no deposit get on the property ladder, and they can bring you up to speed with every possible option and make sure you choose the right one. Needless to say, when this new 100% mortgage product hits the market, seeking professional advice before you apply for it is highly recommended.

You can read more about no deposit mortgages in our standalone guide on this topic.

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Maximise your chances of approval, whatever your situation - Find your perfect mortgage broker

Don't miss out...

Sign up for the latest market news, new lender product information and helpful tips and advice from our experts!

Close icon