100% Mortgages

If saving for a deposit feels out of reach while rent and living costs keep taking priority, a 100% mortgage could be the route onto the property ladder you have been looking for. At Premier Mortgage Services, we are independent whole-of-market mortgage brokers with over 30 years of experience helping buyers across the UK secure the right mortgage for their circumstances. We know which lenders offer genuine 100% mortgage options and how to get your application in the best possible shape.

Call us on 0115 9499988 or get in touch online for a free, no-obligation conversation about whether a 100% mortgage could work for you.

What Is a 100% Mortgage?

A 100% mortgage — sometimes called a no-deposit mortgage, zero deposit mortgage or 0% deposit mortgage — allows you to borrow the entire purchase price of a property without putting down any upfront deposit. Rather than saving 5%, 10% or more of a property's value before you can buy, you borrow the full amount from a lender.

These mortgages are not widely available on the high street and they are not right for everyone, but for the right applicant in the right circumstances they can make homeownership possible years earlier than the traditional route.

How Do 100% Mortgages Work?

Most 100% mortgages available in the UK today are structured as guarantor mortgages or family deposit mortgages. This means a family member — typically a parent or grandparent — agrees to act as a guarantor, either by agreeing to cover your repayments if you cannot, or by placing savings as security against your mortgage for a set period.

Some lenders also offer 100% mortgages to existing renters with a strong track record of paying rent on time, using that rental history as evidence of affordability in place of a deposit. This is a relatively new option and availability varies between lenders, which is why working with an experienced whole-of-market broker makes a significant difference.

You will still need to budget for other purchasing costs — legal fees, surveys and stamp duty if applicable — but you won't need a lump sum for the deposit itself.

Who Offers 100% Mortgages in the UK?

100% LTV mortgages are not available directly on the high street in the way that standard mortgages are. They are offered by a smaller number of specialist and family-friendly lenders, often only through mortgage brokers. As whole-of-market brokers, Premier Mortgage Services has access to lenders and products that you won't find by walking into a bank branch or searching a comparison website.

The lender landscape for 100% mortgages changes regularly. New products emerge and existing ones are withdrawn depending on market conditions. The best way to find out what is available to you right now is to speak to one of our advisers directly.

Am I Eligible for a 100% Mortgage?

Eligibility for a 100% mortgage depends on your individual circumstances. Because you are borrowing the full purchase price, lenders apply careful scrutiny to your application. They will typically want to see a stable income and employment history, a credit history that demonstrates responsible borrowing, monthly outgoings that leave sufficient headroom for mortgage repayments, and in most cases a family member who is willing and financially able to act as a guarantor.

You do not need a perfect credit history. However the stronger your overall financial picture, the better your options. If your credit score needs work before you apply, our advisers will give you practical, honest guidance on how to strengthen your application.

100% Mortgages for First Time Buyers

For many first-time buyers across the UK, the deposit is the single biggest barrier to owning a home. With rents continuing to rise and living costs eating into savings, accumulating even a 5% deposit can take years. A 100% mortgage removes that barrier entirely, allowing you to buy a home using your income to service a mortgage rather than paying rent while trying to save at the same time.

We work with first-time buyers from all over the country. Whether you are buying in a city centre, a market town or a rural area, our advisers will help you understand whether a 100% mortgage is achievable for your situation and guide you through every step of the process if it is.

Guarantor Mortgages

Most 100% mortgages involve a guarantor — usually a parent or close family member who agrees to support your application. This is a serious financial commitment for your guarantor and it is important that both you and they fully understand what it involves before proceeding.

Your guarantor will typically need to be a homeowner themselves with sufficient equity, have a stable income or savings, and be prepared to cover your mortgage repayments if you are unable to. In some structures the guarantor places a sum of savings with the lender for a fixed period, which is returned once you have built up sufficient equity in the property.

Our advisers will explain every aspect of the guarantor arrangement clearly to both you and your family member, ensuring everyone understands and is comfortable with what they are agreeing to before any application is submitted.

Family Deposit Mortgages

A family deposit mortgage is a variation of the guarantor mortgage where a family member places savings — typically equivalent to 10% of the purchase price — with the lender as security for a fixed period, often five years. Your family member keeps their savings and earns interest on them, but those savings are held by the lender as a backstop if you fall behind on repayments.

Once you have built up sufficient equity in the property and demonstrated a track record of reliable repayments, the savings are released back to your family member in full. It is one of the more popular structures for 100% mortgage arrangements because it avoids the family member having to put their own home at risk.

100% Mortgages for Renters

A relatively new development in the UK mortgage market is the availability of 100% mortgages for tenants with a strong history of paying rent on time. Some lenders now accept a proven rental track record — typically 12 months or more of on-time payments — as a substitute for a traditional deposit, recognising that the discipline required to meet monthly rent commitments is directly comparable to the discipline required to meet mortgage repayments.

If you have been renting for at least a year and have a clean payment history, this could open up 100% mortgage options that do not require a family guarantor. Speak to our advisers to find out whether you might qualify.

Pros and Cons of 100% Mortgages

We believe in giving honest, straightforward advice. Here is what you should know before deciding whether a 100% mortgage is right for you.

The main benefits are that you can buy sooner without waiting years to save a deposit, you stop paying rent and start building equity in your own home, and your savings — if you have any — can be kept back for moving costs, legal fees and home improvements. The risks to be aware of are that interest rates on 100% mortgages tend to be higher than those on lower LTV products because the lender is taking on more risk, if house prices fall you could find yourself in negative equity owing more than the property is worth, and if your application involves a guarantor that is a significant responsibility for them that must be considered carefully by everyone involved.

Our advisers will work through both sides of the equation with you honestly, including running through the numbers on monthly repayments versus your current rental costs, so you can make a fully informed decision.

Alternatives to a 100% Mortgage

A 100% mortgage is not the right solution for every buyer. If it is not suitable for your circumstances there are other routes onto the property ladder that may work for you. These include 95% mortgages where only a 5% deposit is required, shared ownership schemes where you buy a share of a property and pay subsidised rent on the remainder, the Mortgage Guarantee Scheme which supports 95% LTV lending across a wider range of lenders, Right to Buy mortgages for qualifying council tenants purchasing their home, and gifted deposit mortgages where a family member gifts you the deposit rather than acting as guarantor.

We will always present you with the full picture of your options — not just the product you came to ask about. Our job is to find the right solution for your situation, whatever that turns out to be.

Why Choose Premier Mortgage Services?

Premier Mortgage Services has been advising buyers across the UK for over 30 years. We are independent, whole-of-market brokers with no ties to any lender and no commercial incentive to recommend one product over another. Our only interest is finding the right mortgage for your circumstances.

We have access to over 90 lenders including specialist lenders who offer 100% mortgage products not available on comparison sites or directly to the public. Our advisers have decades of combined experience across every mortgage type including complex cases, adverse credit, self-employed applicants and specialist lending situations.

Initial advice is always free. There is no obligation and no pressure. Call us on 0115 9499988 or get in touch online to find out whether a 100% mortgage could work for you.

Frequently Asked Questions

Can I get a 100% mortgage with bad credit?

It is possible but more difficult. Most lenders offering 100% mortgages expect a reasonably clean credit history. If you have defaults, CCJs or a history of missed payments you may need to address these before applying. Our advisers will give you an honest assessment of where you stand and what you can do to improve your position.

Do I need a guarantor for a 100% mortgage?

In most cases yes. The majority of 100% mortgage products available today require a family guarantor or a family deposit arrangement. There are some exceptions — speak to our team to find out what is available for your specific situation.

How much can I borrow on a 100% mortgage?

The amount you can borrow depends on your income, outgoings and the lender's affordability assessment. Our advisers will give you a realistic indication of your borrowing capacity before any application is made.

Are 100% mortgages more expensive than standard mortgages?

Yes, generally. Because the lender is taking on more risk by lending the full purchase price, interest rates on 100% mortgages tend to be higher than those on lower LTV products. The difference in monthly repayment is worth weighing against the ongoing cost of renting while you save a deposit. Our advisers will work through the numbers with you so you can make an informed decision.

What happens if house prices fall after I buy?

If house prices drop after you buy, you could find yourself in negative equity — owing more than the property is worth. This is a genuine risk with 100% mortgages that is less likely with lower LTV products. It is something our advisers will discuss with you honestly as part of your consultation.

Can I get a 100% mortgage if I am self-employed?

It is more challenging but not impossible. Self-employed applicants typically need to demonstrate at least two years of accounts or tax returns to satisfy a lender's income requirements. If you are self-employed and interested in a 100% mortgage, speak to our advisers who have extensive experience helping self-employed buyers across a range of circumstances.

How do I apply?

Call us on 0115 9499988 or get in touch via our contact page for a free, no-obligation initial consultation. We will assess your situation, explain your options and tell you honestly whether a 100% mortgage application is realistic for you right now.