No Deposit Mortgage For First Time Buyer

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No Deposit Mortgage For First Time Buyer, No Deposit Mortgage For First Time Buyer, Montgomery Financial

Get a mortgage with no deposit for first time buyers with Charles Breen. 

Struggling to save up a significant amount for your first home? Don’t worry you are not alone, it’s widely recognised that purchasing a property involves numerous costs, with the initial cash deposit typically being the largest.

Even after years of diligent saving, coming up with a five per cent deposit for your first home can still seem like a daunting challenge.

However, with the availability of first-time buyer mortgages that require no deposit, you may be able to step into your new home sooner than you had anticipated.

To help you decide whether a zero-deposit mortgage is a viable option for achieving home ownership, we outline the details of this type of agreement, its advantages, and importantly, how feasible it is for first-time buyers to secure a zero-deposit mortgage.

What’s a zero-deposit mortgage?

Zero-deposit mortgages, also referred to as no-deposit, 0 per cent deposit, and 100 per cent loan-to-value (LTV) mortgages, involve borrowing a loan that covers the full cost of purchasing a property, as the name suggests.

 Consequently, there is no need to pay any initial cash deposit. In the United Kingdom, it is typical for property buyers to provide a deposit ranging from 10 to 20 per cent and finance the remaining purchase amount with a loan from a lender.

 While first-time buyers may have the option of obtaining a five per cent mortgage, a zero-deposit mortgage can greatly assist in enabling more individuals to achieve homeownership.

It is crucial to remember that no-deposit mortgages were reintroduced in 2023 after being discontinued by all lenders in 2008 due to the financial crisis. Now that this desirable option is available again, are the advantages worth considering?

Do you need a deposit to get a mortgage?

No, you don’t need to. There is a UK Building Society providing mortgages that do not need a deposit or any guarantor or family assistance. This mortgage deal is designed to assist renters in purchasing their own property.

While this 100% mortgage option can help some renters buy a home when they would otherwise have difficulty, it is advisable to seek professional guidance before applying for it. There are risks associated with 100% mortgages and alternative methods to secure funding without a deposit, such as family support mortgages and government initiatives.

What are the benefits of a zero-deposit mortgage?

Naturally, the main advantage of a zero-deposit mortgage is that you are not required to make a large deposit or find a guarantor. This makes no-deposit mortgages especially appealing to renters who find it challenging to save money due to high monthly rent costs.

Saving even a five percent deposit can be tough, especially for individuals applying for a mortgage on their own, so being able to secure a mortgage without a deposit is crucial for helping first-time buyers enter the property market. However, it’s important to note that zero-deposit mortgages typically come with higher interest rates compared to mortgages with a five percent deposit.

Lenders offer no-deposit mortgage options with higher interest rates and stricter terms because they are taking on more risk by providing more funding, while the borrower is not risking their own funds if they fail to make payments.

In general, opting for a zero deposit mortgage will likely result in higher long-term payments for a property compared to putting down a deposit. Additionally, stricter eligibility criteria for this type of mortgage means that fewer applicants are approved due to stringent affordability requirements.

If you are uncertain about whether the advantages of a no deposit first-time buyer mortgage outweigh the potential drawbacks, it is crucial to seek the necessary guidance.

Our knowledgeable team of mortgage advisors at Montgomery Financial can evaluate your specific requirements and financial status to assist you in finding the most suitable mortgage option for your needs.

Is it possible to get a mortgage without a deposit?

In simple terms, yes, it is possible to secure a mortgage without a deposit in the UK.
However, while there are lenders in the UK that offer zero-deposit mortgages, only a few of them do so. Additionally, these lenders usually limit the loan amount to no more than 4.5 times your salary (or based on combined salaries for couples).

Therefore, if you choose a no-deposit mortgage, you will not be able to borrow more than the property’s value. Lenders also have strict criteria that applicants must meet to be eligible for this type of mortgage.

Applicants typically need to have a good credit score and pass affordability assessments to qualify for this type of mortgage. This makes it more challenging for buyers, particularly first-time buyers or single applicants, to meet the requirements and secure this type of loan.

Can first-time buyers get a mortgage with no deposit?

Absolutely, it is possible! If you are eager to secure a first-time buyer mortgage without a deposit, you will be happy to know that a major lender has recently re-introduced zero or 0 deposit mortgages for first-time buyers.

In May 2023, Skipton Building Society launched a 100% no-deposit mortgage aimed at renters who are seeking a more attainable path to owning a home.

How to buy your first house in the UK with zero deposit

Excited to enter the housing market as a first-time buyer without a deposit but not sure where to begin? You can now borrow with a no deposit mortgage. Skipton Building Society offers a 100% no-deposit mortgage, which is one option for purchasing a home without a down payment. Additionally, there are other routes to homeownership that do not require a deposit.

To assist you in navigating the different options available for first-time buyers, we will discuss various ways you can achieve your goal of owning a home without having to save for years, including how to qualify for a home without a deposit.

The zero-deposit mortgage offered by Skipton Building Society is known as the “Track Record” mortgage. This type of mortgage is targeted towards first-time buyers who have not owned a UK property in the past three years, are currently renting, and have either no deposit or less than five percent of the property value as a deposit.
In addition to meeting the deposit criteria, applicants must be at least 21 years old and demonstrate a track record of timely payments on their debts and credit cards for the past six months. Applicants, whether applying individually or jointly, must also provide evidence of paying full rent for a continuous period of at least 12 months within the last 18 months.
For more information on the advantages and disadvantages of this zero-deposit mortgage and to determine if it is suitable for your circumstances, you can request a call back from Montgomery Financial’s team of experienced mortgage advisors. If this type of mortgage is a good fit, they can assist you with the application process and securing the best deal available.

It is important to consider that some first-time buyer mortgages that do not require a deposit may instead require a guarantor. These types of mortgages are often referred to as guarantor mortgages and are intended for individuals who do not have sufficient income to qualify for a mortgage on their own.
Single applicants, rather than couples where both parties are working and earning a salary, are more inclined to seek out a guarantor mortgage. By having a guarantor involved in the agreement, lenders can lower their risk since the guarantor is responsible for repaying the loan if the applicant is unable to make their mortgage payments as agreed.
Not all lenders offer guarantor mortgages, which can make finding the right deal more challenging due to limited choices. We are able to assess your options and offer professional advice on which path may be the most beneficial, particularly for first-time buyers.

If you lack the funds for your dream of homeownership, a loved one might propose a gifted deposit. This refers to a monetary contribution from someone else, either partially or completely, to help you buy a home.
Typically, this person is someone close to you who has accumulated enough savings to assist, such as a grandparent, parent, or sibling. The gifted deposit could be a substantial amount, possibly up to 20 percent or more, or it could be combined with your existing five percent deposit to make a larger 10 percent deposit.
While most lenders are usually willing to accept gifted deposits for property purchases, some may not. It’s important to be honest with your mortgage advisor or lender to ensure a smooth home buying process

Although not ideal for individuals purchasing a property for the first time, this no-deposit option can be a convenient method for acquiring additional properties without the need to save or sell existing ones!
This approach involves accessing the equity from a different property you own in order to fund a deposit for a new property. Alternatively, you can explore options to obtain a home without a deposit. To accomplish this, you would need to refinance your current property.

You may have also thought about taking out a personal loan as another option for buying a home. However, these loans are known as unsecured loans and typically have higher interest rates and shorter repayment terms.
Lenders view applicants with personal loans as higher risk, making them less desirable candidates. Despite the potential impact of unsecured loans on affordability, some lenders may still be willing to provide mortgages to these individuals looking to become homeowners.

If you are currently leasing a council property but are interested in becoming a homeowner, you may want to explore the government’s Right to Buy program. This initiative is designed to assist eligible social housing tenants in buying their council home either at a reduced price or with no down payment, or by using their discount as the down payment.
It is important to note that applications for this program are limited to a specific group of individuals. To be eligible to purchase the property, it must be self-contained, your primary residence, and managed by a public sector landlord, such as a council or housing association, for at least three years.
Additionally, you must be classified as a ‘secure tenant’, meaning you have a secure tenancy agreement. Only a few lenders work with zero mortgage first-time buyers to facilitate this process, so it may be beneficial to consult with a specialist advisor.

If you haven’t completely ruled out the idea of saving money and don’t have an urgent need to purchase a home right away, this might be the most straightforward choice. However, obtaining a new mortgage might open up additional possibilities. Many lenders are willing to accept small deposits ranging from 5% to 10% if you have a good credit history and stable income. If you happen to be fortunate enough to see a drop in house prices, your savings could go further when it comes time to make a purchase.
This approach could also allow you the opportunity to address any potential credit issues that could complicate your ability to secure a mortgage in the future. If you are uncertain about your current credit score, you have the option to access a free trial online or through a mortgage broker.

Speak To an Expert
We want to keep that relationship with you up until your mortgage completes in 20, 25 or maybe 35 years. It’s not just a one-off transaction. It’s a long-term relationship, where we watch the market to get you the most positive products out there and try to save you money.

Expert first-time buyer mortgage advice to get a no deposit mortgage.

Being a novice buyer with numerous choices, including the possibility of a zero deposit mortgage for first-time buyers, it can be challenging to determine the most suitable mortgage for your situation.
With constantly changing government schemes, interest rates, and mortgage options, navigating the complex realm of mortgages can be confusing at times, and consulting a mortgage broker may help.
Fortunately, the team of mortgage specialists at Montgomery Financial is here to simplify your journey towards home ownership. Our transparent and genuine approach to mortgages ensures that we will assist you in securing the most suitable mortgage for your needs, while also explaining any advantages and disadvantages along the way.
Instead of bombarding you with technical mortgage jargon, our friendly team will simplify the entire process of buying a home using easy-to-understand language, linked to the mortgage you’re considering. Whether you’re concerned about your down payment size or feeling overwhelmed by the many lender options out there, we’re here to help.
If you want to learn more about the services for first-time buyers offered by our family-owned business and how we can assist you in getting your first home, please schedule an appointment with one of our knowledgeable mortgage advisors at Montgomery Financial today.
If you’d like to talk about your first-time buyer mortgage needs with one of our team members before making an appointment, just request a call back at a more suitable time. For those who prefer in-person discussions and live in Northamptonshire, we invite you to visit our office in Northamptonshire.

No Deposit Mortgage FAQ

It is challenging but possible to get a mortgage without a deposit.

Some lenders offer 100% mortgages, though they typically come with stricter eligibility criteria and higher interest rates.

Consulting a mortgage broker who specialises in no deposit mortgages is always  recommended to explore your options and greatly increase your chances of being accepted.

Securing a 100% mortgage may prove challenging for individuals with a poor credit background. Lenders often view such applicants as too risky without a deposit, but there are other very good options available, such as a joint borrower sole proprietor mortgage, 1% deposit mortgage or shared ownership mortgages to name a few.

Securing a 100% mortgage may prove challenging for individuals with a poor credit background. Lenders often view such applicants as too risky without a down payment.

A guarantor mortgage could allow you to secure a mortgage without a deposit, despite having a low credit rating or limited credit history. To qualify for this type of mortgage, you will need to have a reliable family member or friend who is willing to be financially responsible for the loan if you are unable to make the repayments.

A 100% mortgage is when you borrow the full amount of the property’s value without needing to pay a deposit.

A guarantor mortgage could allow you to secure a mortgage without a deposit, despite having a low credit rating or limited credit history. To qualify for this type of mortgage, you will need to have a reliable family member or friend who is willing to be financially responsible for the loan if you are unable to make the repayments.

You can save up a deposit by setting aside a portion of your earnings regularly until you reach the desired amount.

If you and your partner saved £50 a week into a Lifetime ISA, in 4 years you will have £26,000 thanks to the 25% government bonus.

That is a 10% deposit on a £260,000 house!

For first-time buyers, Montgomery Financial offers several tailored mortgage if you’re looking to afford a higher mortgage price or with no deposit. These options are designed to provide flexibility and support, making home ownership accessible despite market challenges. 

First-time buyers can explore low deposit mortgages, shared ownership mortgages, and schemes like the mortgage guarantee scheme to buy their first home. Consult with their expert advisors to find the best fit for your financial situation.

The short answer is yes!!

Some mortgage providers offer options for first-time buyers to borrow without needing to put down a deposit, such as zero deposit mortgages or some shared ownership mortgages. You can also look into mortgages that allow you to borrow with as little as a £5,000 deposit along with a whole host of other options, its why its so important to speak to a specialist in low deposit mortgages like Montgomery Financial.

When looking for a mortgage as a first-time buyer, it’s crucial to find the best mortgage product. Start by speaking to a mortgage broker who can look at different options, ideally a whole of market broker as this gives you the most options and access to the best deals for your circumstance. If you’re struggling to raise a deposit, there are options still open to you such as no deposit mortgages, shared ownership mortgages ect. A good mortgage broker will be able to tell you exactly how much you can afford, how large a deposit to put towards your first home, and explain the house buying process in detail.

In the past, mortgages were widely available even with a no deposit, but today you might need a larger deposit such as 5% of the purchase price, but it is still possible to get a mortgage with zero deposit. Some buyers consider options to borrow money for a deposit when struggling to raise a deposit. However, finding a specialist mortgage broker who can look for the best deal is essential and knows which lenders will accept you taking a personal loan for a mortgage.

Remember to account for mortgage fees and stamp duty when calculating your costs. If you’re looking for a mortgage and find it hard to borrow with no deposit, consider improving your savings strategy. Ensure you can pay your mortgage comfortably even if the mortgage is usually higher than expected. It is always recommended to speak to a mortgage broker who can help you compare mortgage products and find the most suitable mortgage deal for your situation.

Mortgage rates are influenced by factors like your credit score, the size of your deposit, the mortgage lender, and current market conditions.

If you have bad credit and are looking to buy your first home, you may need to save for a deposit as you likely can’t get a 100 percent mortgage in the UK. You may be able to get a guarantor mortgage or possibly a 100% shared ownership mortgage Instead. Alternatively aim for a larger deposit when you buy, as a significant deposit you can put down can improve your chances of getting accepted for a mortgage from a mortgage lender.

A no-deposit mortgage allows first-time buyers to take out a mortgage without needing to put down a deposit. This means you can secure a loan for the entire value of the property. However, keep in mind that monthly mortgage repayments may be higher, and strict eligibility criteria can apply.

There are limited no-deposit mortgages available, and they often come with stricter requirements. It’s essential to research and compare different lenders to find one that suits your needs.

To be able to get a mortgage with no deposit, lenders typically require borrowers to have a strong credit history, stable income, and often a guarantor. Other criteria may include being named on your mortgage and demonstrating the ability to manage mortgage repayments.

First-time buyers can improve their chances by maintaining a good credit score, saving for potential additional costs, ensuring their income is stable, and potentially seeking advice from a mortgage advisor. Additionally, having a guarantor with sufficient equity in their own home can increase eligibility.

The main risks include higher monthly mortgage repayments and the possibility of negative equity if property prices fall. If you’re unable to keep up with repayments on your mortgage, it could lead to financial difficulties and even repossession of the property.


Yes, a low deposit mortgage can still help first-time buyers get on the property ladder. While you may need to put down a deposit of around 5-10%, it’s often a more accessible option than trying to secure a 100% mortgage with no deposit.

The average mortgage term for a no-deposit mortgage typically ranges from 25 to 35 years, though this can vary depending on the lender’s terms and your financial situation. A longer mortgage term can reduce monthly repayments but increase the total amount owed on the mortgage over time.

Speak To an Expert
We want to keep that relationship with you up until your mortgage completes in 20, 25 or maybe 35 years. It’s not just a one-off transaction. It’s a long-term relationship, where we watch the market to get you the most positive products out there and try to save you money.

Why Montgomery Financial

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