12 Apr 2024
Can I get a mortgage without a deposit?
If you are struggling to get over the hurdle of saving enough deposit to buy because you are in a rental property and you want to purchase your own home, you may be able to with a 100% mortgage product. You will need to meet certain requirements and be financially stable - no missed payments on debts or credit commitments in the last six months, and you must be able to show you’ve paid rent for 12 months consecutively in the last 18 months.
What is a 100% mortgage?
Also known as a “track record mortgage” or a “no deposit mortgage”, this product is a 100% loan-to-value (LTV) mortgage where the borrow does not need to provide a lump sum of money as a deposit. This means the lender will provide the full amount of the loan up front to purchase the house.
Who can apply?
- You haven't owned a property in the UK in the last three years
- You are 21+
- You haven't missed any payments on debts or credit commitments in the last six months
- You want to borrow up to £600,000
- You aren't looking to buy a new build flat
- You are not looking to purchase a property in Northern Ireland.
Sole Applicants:
- You've paid all rent for 12 months consecutively within the last 18 months. You may also be required to show proof of payments of household bills.
Joint Applicants (up to four people):
- You can prove that all rent has been paid either by one applicant or together for 12 months consecutively, within the last 18 months
- If you've been renting separately, you can prove that you have paid all your rent
- You may be required to show proof of payments of household bills.
Pros and cons
As with any product where you are borrowing a large sum of money there are going to be pros and cons. The biggest pro is that there is zero deposit required to enable you to get on the property ladder. Because of the high risk to the lender, the cons include a tougher eligibility criteria and limited availability as there are only a few lenders that offer this product meaning fewer options available.
Tips to increase your chances of getting a 100% mortgage
-
1) Check your credit score
A good credit score can help secure this type of mortgage as lenders will assess this to determine your eligibility
2) Put some money away for costs
You may not need to have money up front for the deposit, but there will be other costs associated with the mortgage such as legal costs, stamp duty and valuation fees3) Speak to an Independent Mortgage Advisor
Our skilled independent mortgage experts at Mortgage Required have access to the whole mortgage market and can guide you through the best option for you, and help you through the buying process.
If you have any questions about 100% mortgages, or would like to discuss another product, please give our team a call on 01628 507477.
Recent posts
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
UK 2024 Autumn Budget: Housing
17 days ago
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
Talking about money with kids
24 days ago
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
Labour Autumn Budget Predictions: Housing
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
How can I look after my mental health?
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!
First Time Buyer to do List
4 Oct 2024
Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started.
Bank of England Holds Base Rate at 5%
20 Sep 2024
With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.
More information
Trusted by
