Buying a home with no deposit sounds impossible — but 100% mortgages are making a quiet comeback in 2026. Here's who offers them, what they really cost, and whether they're a smart move. Updated April 2026

Who Offers 100% Mortgages in the UK?

Note: 100% mortgage products are limited and criteria are strict. Availability changes frequently — always check directly with lenders or use a broker to access current deals.

The Real Cost of a 100% Mortgage

A 100% mortgage at 5.99% on a £200,000 property over 25 years costs approximately £1,287/month in repayments. Compare that to a 5-year fix at 4.35% with a 25% deposit on the same property (£150,000 loan): approximately £820/month. The no-deposit premium costs roughly £467 extra per month — or £5,600/year.

Over a 5-year fixed term, that's an additional £28,000 in interest payments compared to a borrower who saved a deposit. This illustrates why saving even a small deposit significantly improves your mortgage terms.

Alternatives to 100% Mortgages

Should You Get a 100% Mortgage?

A 100% mortgage makes most sense if you're paying high rent and could afford mortgage repayments but struggle to save a deposit due to rental costs. The risk of negative equity is real but manageable if you plan to stay in the property for at least 5 years and the area has reasonable long-term growth prospects.

This article is for informational purposes only and does not constitute financial advice. Mortgage rates change daily. Always consult a qualified mortgage broker before making decisions. Your home may be repossessed if you do not keep up repayments.