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100% Mortgages

Published: 11 May 2023
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Author: Carl Shave - CEO and co-founder
Last updated: 16Jul2024

100% Mortgages

For many buyers, getting a deposit saved for a property purchase can be a difficult task. This is especially the case for first-time buyers when you may already be renting. Then also having the everyday living costs to cover before you even start to think about savings.

How to get a mortgage with no deposit:

The Skipton Building Society have recognised the difficulties many potential first-time buyers who are renting face. Whilst a few 0% deposit mortgages already exist these require the assistance of another person. Whether this be in the form of a guarantor or a deposit gift donor. The Skipton Building Society does away with these requirements.

Can I get a mortgage with no deposit:

Predominantly 0% deposit mortgages in the UK are available for first time buyers. It is recognised that this sector struggles the most especially with the levels of property prices. The Skipton Building Society 100% mortgage scheme is targeted at this audience. Called the Track Record Mortgage it is designed for those who have a history of renting.

Specific criteria will apply, with some of the more relevant being:

  • Each applicant must be a first-time buyer
  • Each applicant must be aged 21 or over
  • Applicants must match those that are renting now (and have been for the last 12 months)
  • Must have proof of rent paid for the last 12 months in a row in the last 18 months
  • Must have experience of paying household bills for the last 12 months in the last 18 months
  • No missed or late credit/debit payments for any applicant in the last 6 months
  • The monthly mortgage payment must be equal or less than the average of the last 6 months rent cost
  • Maximum loan size if £600,000
  • Deposit must be less than 5%
  • Not available on new build flats

Other criteria will apply that our trained advisers will be very happy to discuss with you. If you feel you may qualify based on all the above points get in contact with us today.

Try our Mortgage Affordability Calculator

What interest rates are available:

Interest rates are priced by lenders according to the amount of deposit or equity a borrower has. The bigger the deposit ie the lower the loan to value, the lower the rate usually offered. As such, you would therefore expect a slightly higher rate for 0% deposit mortgages. Rates change frequently and it is advised that you carry out your research thoroughly. The simplest way is to speak to one of our advisers who will be able to inform you on the current offerings. They can also establish which options may be available to you based on criteria.

Alternatives to a 100% LTV mortgage:

100% mortgages are few and far between and for those available strict criteria will apply. If you are not eligible there may be other schemes available to you.

Gifted deposit

For those struggling to save, many lenders will be happy to accept a gifted deposit. For most this will need to be from a close relative but it’s not always the case. Not everyone is able to simply give someone a gift. As such there are some schemes available where the deposit is put in a savings account instead. This account is with the lender and in the helper’s name. Typically, as long as the mortgage is up to date after three years the helper can withdraw their money. They will even earn interest.

Shared Ownership

The part buy part rent government scheme. Your required deposit is determined by the share you are purchasing rather than on the full market value. As such, the amount you require should be much less. There may also be some lenders who offer 100% Shared Ownership mortgages.

Combined living

A solution for some is pulling together resources. Parents or grandparents may be looking to sell up and move. Rather than downsizing, they may look to buy with their children/grandchildren. Purchasing a property large enough for all to live in may offer the answer for all involved.

Our specialist advisors are equipped to help you every step of the way. Get in touch for a no obligation chat.

0800 977 7840