100% Mortgages are an option again
Saving a deposit while paying rent is a bit like filling a bath with the plug out. Halifax put the average first-time buyer deposit at £61,090 in 2024, which is around 20% of the purchase price. No wonder the 100% mortgage keeps coming back into the conversation.
A 100 percent mortgage lets you borrow the full purchase price, with no deposit. They disappeared after the 2008 financial crisis and returned in a limited way in 2023. As of October 2026, around five to six UK lenders offer them without a traditional cash deposit, depending on the product and your eligibility. The government has also just announced Your First Home, a new scheme for first-time buyers with small deposits.
This guide explains how a 100% mortgage works, which lenders offer one, the risks, and how it compares with the new scheme.
What is a 100% mortgage?
A 100% mortgage is a home loan for the whole purchase price. The key term here is loan to value (LTV), which is the size of your mortgage compared with the value of the property. A 100% LTV mortgage means no deposit.
Most first-time buyer mortgages need a deposit of at least 5%, which is a 95% LTV mortgage. On a £250,000 home, that is £12,500 up front. With a 100% mortgage you borrow the full £250,000.
Why did 100% mortgages disappear?
In the years up to 2006, cheap credit and relaxed lending were everywhere. Then the market turned. Northern Rock asked the Bank of England for help and was eventually nationalised. In September 2008, the global financial services firm Lehman Brothers went bankrupt. Lenders pulled back from high LTV lending, and rules on affordability checks became much tougher.
Today’s 100% mortgages are a different animal. They come with conditions designed to make the lending more responsible, such as rent history checks, income minimums and full affordability assessments.
Which lenders offer 100% mortgages?
These are the main providers as of October 2026. Products and criteria change often, so treat this as a guide and check with an adviser before you apply.
| Lender | Product | Who it suits |
|---|---|---|
| Skipton Building Society | Track Record mortgage | Renters with a history of on-time rent payments |
| Melton Building Society | 100% mortgage | Eligible first-time buyers, without a rental history requirement |
| April Mortgages | 100% mortgage with longer fixed-rate options | Buyers who want to fix their rate for longer |
| Hanley Economic Building Society | 100% mortgage | Eligible renters |
| Gable Mortgages | No-deposit mortgage, including arrangements through lending partners | Buyers who can afford repayments but cannot save a deposit |
| Metro Bank | 100% mortgage with a joint borrower | Buyers with family support, where a relative joins the mortgage |
There are also family-assisted products from lenders such as Barclays and Family Building Society, where relatives provide additional security.
What is the Skipton Track Record mortgage?
The Skipton Building Society Track Record mortgage was the product that brought 100% mortgages back in 2023. It is a mortgage for renters. Instead of a deposit, Skipton looks at your rental payment history. You need to be 21 or over, and the lender expects around 12 months of on-time rent payments and a clean credit record. The maximum loan has been £600,000.
What types of 100% mortgage are there?
There is no single product. Each type works differently, and the one that fits depends on your circumstances.
| Type | Who it suits | The catch |
|---|---|---|
| Track record (rental history) | Renters who can show around 12 months of on-time rent payments | Some limit your monthly mortgage payment, or how much you can borrow, based on your rent |
| Family-assisted | Buyers with a relative who can act as a guarantor, join the mortgage as a joint borrower, or put savings aside as security | Your family member is financially on the hook if payments are missed |
| No rental history | Buyers who do not pay rent, for example those living with family | Lenders look closely at income, credit history and job stability |
| New build linked | Buyers of homes on selected developments, where the developer may help with costs | Limited to specific properties and developments |
Rates change often. At the time of writing (October 2026), 100% deals start at around 6%, and they generally cost more than mortgages with a deposit.
Who can get a 100% mortgage?
Criteria vary by lender, but you will usually need:
- To be aged 21 or over (some lenders ask for 23)
- A clean credit history
- A minimum income, which we have seen set between £25,000 and £28,000 depending on the product
- A stable job, often with a minimum time in your current role
- For track record products, evidence of rent paid on time for around 12 months
Self-employed applicants can apply too. Lenders will want to see your tax calculations (known as SA302s) and often two years of accounts.
Is a 100% mortgage a good idea for first-time buyers?
It can be, for the right buyer. It can also be an expensive mistake for the wrong one.
The upsides
- You can buy sooner, instead of spending years saving
- Your monthly payments build towards owning a home, rather than going to a landlord
- You do not need family to find a deposit
The risks
- Higher rates and bigger payments. Lenders charge more when you borrow more of the price.
- Negative equity. This means owing more on your mortgage than your home is worth. With no deposit, you have no cushion. If prices dip, even slightly, you could be underwater.
- Harder to move or remortgage. If you are in negative equity, switching deals or selling can be difficult.
- Costs beyond the mortgage. You still need cash for legal fees, a survey and moving costs.
Pro Tip: Do not compare 100% deals with each other only. Compare them with 95% deals too. A small deposit can sometimes mean a lower rate, and a lower rate adds up over a five-year fix.
Common Mistake: Looking only at the monthly payment. Check the total cost over the fixed term, plus any product fees, and make sure you could still afford the payments when your fixed rate ends.
As our Managing Director, Max Mace, puts it: “With interest rates where they are right now, the 100% mortgage is not necessarily right for every client, but for someone looking to purchase who doesn’t have the deposit required, it can still be a competitive interest rate. So it’s really worth getting in touch with an advisor to discuss your options, we would still scan the whole of the market to look at 5% deals as well as 100% deals, and then we can decide together what the best route is for you.”
What is the Your First Home scheme?
Your First Home is a new government scheme for first-time buyers. It has been announced but is not open yet, and the full detail is still to come.
What we know so far:
- Prime Minister Andy Burnham announced it on 26 September 2026
- It offers a 2.5% deposit plus a 20% equity loan (where the government lends you part of the purchase price, so you need a smaller mortgage)
- It is for new build homes
- It is aimed at first-time buyers without family help
- The Chancellor is due to set out the detail at the Budget next month, and pre-registration is expected to open by the end of 2026
What we do not know yet: price caps, which areas will be covered, the full eligibility rules, how the equity loan will be repaid, and when buying can start. Previous equity loan schemes had to be repaid in the end, so expect the same principle to apply, but wait for the final rules.
How does it compare with a 100% mortgage?
| 100% mortgage | Your First Home | 95% mortgage | |
|---|---|---|---|
| Deposit | None | 2.5% | 5% |
| Property | Depends on the product | New build | Most properties |
| Status | Available now | Announced, not open | Available now |
| Best for | Buyers with no deposit and a strong income | New build buyers with a small deposit | Buyers with a small deposit who want the widest choice |
The two are not either/or. If you have a small deposit and want a new build, Your First Home may be worth waiting for. If you want to buy an existing home, or buy sooner, a 100% or 95% mortgage may fit better. An adviser can run the numbers on each.
Case study: first-time buyers in Wolverhampton, no deposit
We recently arranged a 100% mortgage for first-time buyers in Wolverhampton. One applicant was self-employed and the other was employed.
Gregg Baker, Residential Sales Director at NM Finance, says: “100% mortgages are a fantastic opportunity for first-time buyers who can comfortably afford their monthly mortgage payments but are struggling to save a deposit. With only a handful of lenders offering these products, seeking expert mortgage advice is more important than ever. At NM Finance, we are passionate about helping aspiring homeowners understand their options and take that first step onto the property ladder.”
How do I apply for a 100% mortgage?
- Check your credit report. Lenders offering 100% borrowing want a clean record.
- Gather your paperwork. ID, payslips or tax calculations if you are self-employed, bank statements and proof of rent payments.
- Speak to an adviser. We compare 100% and 5% deposit deals across the market, so you see the full picture.
- Get an agreement in principle. This is a lender’s initial indication of what they would lend you.
- Find your home and apply. Your adviser handles the application and keeps it moving.
Frequently asked questions
Which lenders offer 100% mortgages in the UK?
As of October 2026, around five to six lenders offer 100% mortgages without a traditional cash deposit. They include Skipton Building Society, Melton Building Society, April Mortgages, Hanley Economic Building Society, Gable Mortgages and Metro Bank. Family-assisted products are also available from lenders such as Barclays and Family Building Society.
Can I get a 100% mortgage with bad credit?
It is unlikely. Lenders offering 100% borrowing usually want a clean credit history. An adviser can tell you quickly whether your record is a problem.
Can self-employed people get a 100% mortgage?
Yes. You will need to show your income through tax calculations and accounts. We have arranged one for a couple where one applicant was self-employed.
Do I need to have rented to get a 100% mortgage?
Not always. Track record products need rent history, but other products look at your income, credit and job stability instead.
Key takeaways
- A 100% mortgage lets you buy with no deposit, but usually at a higher rate
- Around five to six lenders offer them, and each has different criteria
- With no deposit, you have no cushion if house prices fall
- Your First Home is announced but not live. Details are due at the Budget
- Always compare 100% deals with 95% deals before you decide
Get in touch to see if a 100% mortgage is right for you
Every buyer’s situation is different. We carry out a full fact find and affordability assessment to make sure the advice suits you. Get in touch and we will look at 100% deals and 5% deposit deals together.
Gregg Baker
Residential Sales Director
