Can you get a mortgage in the UK without a deposit?
My long term relationship has fallen apart and i need to move out. Ive looked at renting but its just soooooo expensive – even more than mortgage payments would be, so i figured the best thing to do is buy – i cant rent and save at the same time. Money is too tight for that.
I really like this house and its being sold for £99,950, i can afford the mortgage payments but don’t have a deposit, the vendor isn’t willing to offer a “gifted” deposit and i feel like im stuck with no way out. Is the only way to get on to the property ladder, having a huge deposit?
I have also looked into a shared equity scheme but they have only got appartments – i need a house. Im looking in the Greater Manchester area. Ive also looked at the government part ownership scheme, the house has to be approved by them and already be on some sort of a list – the one i really like isnt on any list. They just want to sell privatley
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Tags: Consensus, Mortgage Adviser, Property Ladder
August 16th, 2010 at 3:19 pm
Your deposit would probably need to be at least 10% to get a mortgage these days. But have a look on some financial websites eg moneysupermarket.com. Other options are to go with part-buy part-rent schemes (such as the NewBuild HomeBuy scheme), or one of the other government loan schemes for first time buyers (eg MyChoice or OwnHome)
August 19th, 2010 at 5:01 am
I’m sorry to say that there just aren’t any 100% mortgages around these days. The minimum deposit needed at the moment is 10% and even those are not available from every lender.
Without a deposit there just isn’t a way to buy if you have looked into those other schemes already.
August 21st, 2010 at 3:50 pm
There are a couple of 100% mortgages available, but they are from Northern Bank (NI), which only lends in Northern Ireland or the Tipton & Coseley Building Society, which only lends in the Midlands and you have to a guarantor for the mortgage.
Lloyds TSB, Yorkshire Bank and Clydesdale Bank offer mortgages to people with a 5% deposit, but the rates are quite high compared to other deals on the market.
If you can’t get a deposit together then i’m afraid you wont have much chance of getting a mortgage deal. You will be better off waiting and trying to save as large a deposit as possible.
August 25th, 2010 at 5:54 am
For 100% mortgages check
For 95% mortgages, see and notice the interest rate difference. The website says it is updated daily, but you would need to contact the financial institutions direct, to confirm accuracy.
If rents are too high, could you find a friend willing to let you have a spare room at a lesser cost than renting by yourself, at least for the moment, to give you a chance to save up? A ten per cent deposit for this house is almost £10,000. That’s a lot of saving. 5% (£5,000) might be achievable. You could boost your efforts by taking on a second job, selling everything you can on ebay etc. And if you do get the mortgage and the house, you might be able to rent out some of it to help fund repayments.
Good luck!!!
August 25th, 2010 at 4:14 pm
Not any more, most of lenders insists to have at least 30% from the property price.
August 29th, 2010 at 12:20 am
I’m afraid not. You’ll need a minimum of 10% in order to get any half-decent interest rate.
Regarding the Tipton & Cosely mortgage, it isn’t a guarantor mortgage. With a guarantor mortgage, the guarantor – usually a parent – guarantees the repayments if you default. The T&C deal actually places a charge on the guarantors property, which is a much bigger undertaking.
If you haven’t got any deposit or at least 10%, you can’t afford to be choosy, I’m afraid.
August 31st, 2010 at 2:01 am
No deposit mortgages seem to be a thing of the past. No lenders are presently offering a no deposit mortgage, there are a few lenders are offering deals with a minimum deposit of 10% but the deals on offer are not that attractive. Most lenders will also only allow a maximum of 5% as a gifted deposit in the calculations.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to