Fri 18 Sep 2026

Can You Really Buy a House Without a Deposit in 2026?

For many first-time buyers, saving a deposit remains one of the biggest barriers to getting onto the property ladder.

But in 2026, some mortgage products are allowing buyers to purchase a property with little or even no deposit.

How does a no-deposit mortgage work?

A 100% mortgage allows a buyer to borrow the full value of a property rather than putting down a traditional deposit.

For example, instead of saving £25,000 for a 10% deposit on a £250,000 home, an eligible buyer could potentially borrow the full £250,000.

However, these mortgages aren't available to everyone. Lenders will still look at income, credit history, existing debts and whether the monthly payments are affordable.

Why are 100% mortgages attracting attention?

The return of higher loan-to-value mortgage products has renewed interest in buying a home with a smaller upfront payment.

For first-time buyers in particular, the deposit can be a major barrier. Someone who can comfortably afford monthly mortgage payments may nevertheless struggle to save tens of thousands of pounds while paying rent and other household expenses.

A 100% mortgage can potentially reduce that initial barrier.

But a smaller deposit does not mean buying a home becomes cheaper overall.

What are the risks?

The biggest concern is that buyers have less protection if property prices fall.

If someone buys a £250,000 home with a 100% mortgage and its value falls to £230,000, they could owe more than the property is worth. This is known as negative equity.

Buyers should also remember that a deposit isn't the only cost involved in purchasing a home. Legal fees, surveys, mortgage fees, moving costs and potentially Stamp Duty can all add to the bill.

Could it help first-time buyers?

For people with a stable income who can afford the monthly mortgage payments but struggle to save a large deposit, a 100% mortgage could provide another route into home ownership.

However, buyers should carefully consider the interest rate, monthly payments and what would happen if their financial circumstances changed.

The bottom line: buying a home without a deposit is possible in some circumstances, but it doesn't remove the affordability checks or financial risks involved in taking out a mortgage.

For trusted advice on your next move it's >> martinflashman.co.uk