Last reviewed: June 2026
TL;DR- True no-deposit mortgages are not available from mainstream UK lenders - most require at least a 5% deposit.
- A small number of specialist products allow no-deposit purchases where a family member provides savings or property as security instead of a cash deposit.
- The negative equity risk at 100% LTV is high - any fall in property value immediately puts the borrower in a negative equity position.
- Shared ownership and First Homes can reduce the deposit required, making purchase accessible at lower savings levels.
Why No-Deposit Mortgages Are Rare
The near-disappearance of no-deposit (100% LTV) mortgages from the mainstream UK market followed the 2008 financial crisis. When property prices fell sharply, borrowers who had purchased at 100% LTV found themselves in negative equity and unable to sell, remortgage or manage financial difficulty without lender support. FCA regulation and lender risk management have since kept 100% LTV lending at the margins of the market.
In 2026, the options for buyers with no deposit of their own are restricted to a small number of specialist and family-assisted products, government-backed schemes that reduce the deposit required, or schemes that substitute other forms of security for a cash deposit.
Family-Assisted No-Deposit Options
Several product types allow a no-deposit purchase where family support is available:
- Springboard mortgages: a family member (typically a parent) places savings in a linked account as security for the lender. The savings act as a substitute for the buyer's deposit. If all mortgage payments are made for the agreed period (typically 3-5 years), the savings are returned to the family member with interest. If the borrower defaults and there is a shortfall after repossession, the family member's savings cover the difference.
- Family charge mortgages: a charge is registered against a family member's own property as additional security. No cash needs to change hands. The family member's home is at risk if the borrower defaults and the sale of the purchased property does not cover the outstanding debt.
- Joint borrower sole proprietor: a family member joins the mortgage as a borrower (not as an owner), using their income to boost affordability. The family member is jointly liable for the debt but does not own the property.
Specialist Products for Renters
Some specialist lenders have developed products designed for long-term renters with no savings but a strong payment track record. These products use rental payment history as evidence of affordability and creditworthiness to justify lending at higher LTV ratios than would otherwise be available. Eligibility is typically strict and the maximum loan and property value that can be purchased under these products are capped. Specific product availability should be checked with a whole-of-market mortgage broker.
Schemes That Reduce the Deposit Required
For buyers with some savings but not enough for a standard 5-10% deposit:
- Shared ownership: purchase a smaller share of the property, typically requiring a deposit of 5% of the share price rather than 5% of the full market value.
- First Homes: discounted new build properties reduce the purchase price and therefore the deposit required.
- Lifetime ISA: the 25% government bonus on LISA contributions means £4,000 per year of savings generates a £5,000 effective deposit contribution.
The Risks of No-Deposit Purchasing
Purchasing without a deposit carries significantly higher risk than purchasing with a standard deposit. At 100% LTV, the borrower has no equity buffer. Any fall in property value creates negative equity. Selling in negative equity requires the borrower to fund the shortfall from other sources. Remortgaging in negative equity is typically impossible. The borrower's financial resilience to cover all these scenarios should be carefully assessed before proceeding with any no-deposit purchase.
Frequently Asked Questions
Can I get a no-deposit mortgage as a first time buyer in 2026?
A small number of specialist products may be available to first time buyers without a deposit, either through family-assisted structures or specialist lender products for renters with strong payment histories. These are not mainstream products and have strict eligibility criteria. A whole-of-market mortgage broker can identify current availability.
What is a springboard mortgage?
A springboard mortgage (offered by some building societies and specialist lenders) allows a buyer to purchase without a cash deposit because a family member places savings in a linked account as security. The savings are typically held for 3-5 years. If all payments are made, the savings are returned to the family member with interest. If the borrower defaults, the savings are used to cover any shortfall after the property is sold. The family member's savings are genuinely at risk.
Does renting history help with a no-deposit mortgage application?
Some specialist lenders consider rental payment history as evidence of financial responsibility when assessing applications at high LTV. The FCA has encouraged lenders to use rental data in affordability assessments where it supports the application. However, rental history alone does not guarantee access to no-deposit products - other eligibility criteria and lender appetite are also relevant.
Is no-deposit shared ownership possible?
Shared ownership requires a deposit on the purchased share - typically 5% of the share price. If the share being purchased is small (for example, 25% of a £200,000 property is £50,000), the required deposit is 5% of £50,000 = £2,500. This is significantly lower than a full market purchase deposit and may be achievable where a full market deposit is not. It is not, strictly, a no-deposit arrangement, but it substantially reduces the deposit barrier to purchase.
