I Have No Deposit Saved
There are more options than you think.
No deposit doesn't mean no hope. 100% mortgages, JBSP, Deposit Boost, the Freedom to Buy guarantee, shared ownership and private rent-to-own all start with little or nothing saved.
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Recommended Guides
Affordability & Deposit Alternatives
Family gifts, equity loans, low deposit mortgages, guarantor options, and regional schemes to help you buy.
Freedom to Buy
The government's permanent 95% mortgage guarantee scheme for buyers with a 5% deposit.
Shared Ownership
Buy a share (10–75%), rent the rest, and staircase to full ownership over time.
Rent to Own
Government Rent to Buy plus the private providers (BeHomed, Keyzy, Rentplus, HomeNow, Tembo) compared in one guide.
Private Treaty
Buying the home you already rent from your landlord: how to approach it, value it, negotiate and complete without overpaying.
Developer Schemes
New-build incentives including Own New Rate Reducer, First Homes, Deposit Boost, and Key Worker contributions.
Affording Your Home
Budgeting strategies and financial planning for sustainable homeownership and long-term success.
Lifetime ISA (LISA)
Save up to £4,000/year with a 25% government bonus towards your first home deposit.
Government Schemes
Overview of all government-backed routes to homeownership and how to decide which is right for you.
What usually gets in the way
The obstacles that come up most often for this group, and what actually moves each one.
Low deposit does not remove the other cash you need
Even where the deposit is close to nothing, legal fees, searches, a survey, a mortgage product fee, land registry fees and removals still have to be paid, and stamp duty may apply depending on the price and where you buy. Plan a completion fund separately from the deposit, because a zero deposit route is not a zero cash route.
A smaller deposit means a bigger loan and a tighter affordability test
The less you put in, the more you borrow, and the more your income has to stretch under the lender stress test. This is why reducing existing credit commitments often does more for a low deposit application than saving a few hundred pounds more.
Higher loan to value usually means a higher rate
Rates are tiered by how much of the price you are borrowing. At the top tiers the monthly payment is higher for the same house than it would be with a larger deposit. That is a trade you can accept knowingly, but it should be priced in before you commit.
Your credit file carries more weight when the deposit is small
Lenders offering the highest loan to value are the most selective about payment history and how much of your available credit you are using. Missed payments, recent new borrowing and heavy card use matter more here than they would on a lower loan.
Gifted deposits need paperwork, not just goodwill
If family are helping, the lender will want a letter confirming the money is a gift rather than a loan, plus evidence of where it came from. Arranging that early avoids a delay right at the point the case goes to underwriting.
Negative equity risk is real at high loan to value
Borrowing almost the full price leaves little buffer if prices dip. It matters most if you might need to sell within a few years. Being honest about how long you expect to stay is part of choosing between these routes.
Routes worth checking
Eligibility rules differ by nation and sometimes by local authority. Always check the current rules for where you plan to buy.
Low and zero deposit mortgages
Some lenders offer products for buyers with little or no deposit, often with tighter criteria on income, credit history and property type. Availability changes, so a whole of market broker is the practical way to see what is currently open to you.
Guarantor and joint borrower sole proprietor
A family member supports the application, either by guaranteeing it or by being on the mortgage without owning the property. Both put real obligations on the person helping, and both should be understood in full before signing.
Shared ownership
Buying a share means a much smaller deposit and a smaller mortgage, with rent on the remaining share. Check the rent, service charge, lease length, resale rules and the cost of buying further shares later.
Developer and new build support
Schemes attached to new build homes can reduce the deposit needed or contribute towards costs. Compare the price of the home against similar resale property, because an incentive on an inflated price is not a saving.
Private rent to own arrangements
Some private providers let you rent a specific home with a route to buying it later. Terms vary widely between providers. Read what happens to any credit built up if your circumstances change, and take independent legal advice on the agreement.
Deposit savings routes worth starting anyway
Even a modest deposit widens the lenders available and lowers the rate tier. A Lifetime ISA (e.g. a LISA) adds a government bonus on eligible contributions towards a first home, with a withdrawal penalty if used for anything else.
How the deposit size changes the loan and the rate tier
An illustration on a £200,000 home, using made up figures to show the mechanism. Not a quotation, a prediction or advice.
- Purchase price
- £200,000
- Option A: no deposit
- Loan £200,000, 100% loan to value
- Option B: £10,000 deposit
- Loan £190,000, 95% loan to value
- Option C: £20,000 deposit
- Loan £180,000, 90% loan to value
- Effect of moving down a tier
- Lower rate band, lower monthly payment
- Still needed in all three
- Legal fees, survey, product fee, removals
The gap between tiers changes with the market. The direction does not. Illustration only, not financial or mortgage advice.
Common questions
Straight answers to what people in this situation ask most. General information, not financial, mortgage, tax or legal advice.
Can you buy a house in the UK with no deposit?
It is possible, but the routes are narrow and the criteria are strict. The main ones are 100% loan to value mortgages from a small number of lenders, a joint borrower sole proprietor or guarantor arrangement where family support the borrowing, shared ownership where you buy a share and pay rent on the rest, and private rent to own arrangements. Each has trade-offs, and none of them removes the other cash you need at completion.
Do 100% mortgages still exist?
A handful of lenders offer products at or close to 100% loan to value, usually with conditions such as a clean payment history, a minimum income, an evidenced rental track record or restrictions on property type. Availability changes month to month, so the practical step is to ask a whole of market broker what is currently open to someone in your position rather than relying on a headline you saw last year.
How much cash do I still need if the deposit is zero?
Budget for legal fees and searches, a survey, Land Registry fees, a mortgage product fee if it is not added to the loan, removals and a moving-in fund. Stamp duty may also apply depending on the price and the nation you are buying in. Our Total Cost to Complete calculator adds these up so the number is not a surprise three weeks before completion.
Is a bigger deposit worth waiting for?
Sometimes. Rates are tiered by loan to value, so crossing a tier can lower the monthly payment for the same house, and a smaller loan is easier to pass an affordability test with. Against that, you are paying rent while you wait and prices may move. Comparing the two paths with real numbers, rather than a rule of thumb, is the honest way to decide.
Will a gifted deposit cause problems with the lender?
Gifted deposits are common and accepted by most lenders. They will want a letter from the person giving it confirming the money is a gift rather than a loan and that they retain no interest in the property, plus evidence of where the money came from. Sorting that paperwork early prevents a delay at underwriting.
Does renting for years count in my favour?
A long record of paying rent on time is not automatically treated as proof you can pay a mortgage, though some lenders and products give it weight, and some rent reporting services can add it to your credit file. It always helps that the record is clean, and it helps more when your credit file and bank statements tell the same tidy story.
Your next steps
- Read the full step-by-step guide to buying a house in the UK
- Score how mortgage ready you are with the free Readiness Check
- Plan a deposit target and timeline in the Deposit Builder
- Test a monthly payment you could sustain with the Monthly Budget Builder
- Add up legal fees, survey and stamp duty with the Total Cost to Complete calculator
- Compare staying in rented against buying with the Rent vs Buy calculator
- Read the deposit alternatives guide in full
- See the myths that keep renters from applying
Ready to Dive In?
Read the whole buying process end to end, or browse every guide in one place.