No deposit mortgages UK 2026: do you need to wait to buy your first home?

TLDR

Do you need a large deposit to buy your first home?

No. Some lenders offer mortgages requiring less than a 5% deposit, including specific products with no deposit at all.

If you are renting while trying to save, buying your first home can feel a long way off. You may assume you need to save 10% or even 20% before speaking to a mortgage adviser. For some buyers, that assumption could mean overlooking options already available.

Following our recent article about the Your First Home scheme and its proposed 2.5% deposit, there is another point worth making: you do not necessarily have to wait for that scheme to explore buying a home.

Banks and building societies have developed different ways to help eligible buyers overcome the deposit barrier.

These mortgages will not suit everyone. However, finding out what you could qualify for may give you a clearer and more realistic plan.

Can you get a mortgage with no deposit in the UK?

Yes. Eligible buyers can access specific 100% loan-to-value mortgages, including Skipton Building Society’s Track Record mortgage, subject to rental history, credit and affordability requirements.

Loan to value, or LTV, is the mortgage expressed as a percentage of the property’s value. A 100% LTV mortgage can cover the full purchase price, subject to the lender’s valuation and lending limits.

A 0% deposit mortgage is not a 0% interest mortgage. You still pay interest on the money borrowed.

Skipton Building Society Track Record mortgage

Skipton’s Track Record mortgage uses a history of rental payments as part of its assessment. Its published criteria include:

• Applicants must be at least 21.
• They must not have owned a property in the UK during the previous three years.
• Evidence of 12 consecutive months of rental payments within the last 18 months is required.
• Applicants must meet credit, affordability and other eligibility requirements.

Borrowing is available up to £600,000, subject to eligibility. The product is available in England, Scotland and Wales, but not Northern Ireland. Property and residency restrictions also apply.

Paying rent reliably can support an application, but it does not automatically establish how much you can borrow.

Family-supported no-deposit mortgages

Some other no-deposit arrangements involve family savings or additional property security. These work differently from a mortgage assessed using your own rental history. Depending on the arrangement, a relative’s savings or property could be at risk.

Everyone involved should understand their obligations before proceeding.

What low-deposit mortgage options are available?

If a no-deposit mortgage is unsuitable, products starting from £5,000, £10,000 or a 5% deposit may provide another route, subject to eligibility.

These are examples rather than a complete market comparison. Minimum deposits do not guarantee acceptance or sufficient borrowing. Products and criteria can change.

Yorkshire Building Society £5,000 deposit mortgage

Yorkshire Building Society offers eligible buyers a mortgage with a minimum £5,000 deposit and borrowing up to 99% LTV.

The maximum property value is £500,000. New-build houses and flats are excluded, and the product is not available in Northern Ireland.

For joint applications, at least one applicant must be a first-time buyer and neither can currently own a property.

For illustration, a £5,000 deposit towards a £250,000 home represents a 2% deposit, leaving a £245,000 mortgage.

You would still need to qualify for that borrowing and budget for buying costs.

For a real example of another lender’s low-deposit route, read our £5,000 deposit mortgage case study for foreign national first-time buyers.

That was a separate Halifax case. Its outcome does not guarantee the same result for another applicant, and current availability and eligibility must be checked.

Santander £10,000 deposit mortgage

Santander’s My First Mortgage offers eligible first-time buyers borrowing up to 98% LTV, with a minimum £10,000 deposit.

Its published borrowing range is £190,001 to £500,000.

It excludes flats, new-build homes and properties in Northern Ireland. Both applicants must be first-time buyers on a joint application.

The £10,000 figure is a minimum, rather than a promise that it will cover the deposit on every property. The maximum LTV and loan limit must also be met.

For example, a £10,000 deposit on a £300,000 property would leave a £290,000 mortgage. Whether you could borrow that amount would depend on affordability and the lender’s other requirements.

Afin Bank 5% deposit mortgages for foreign nationals

Some eligible foreign nationals can apply for Afin Bank mortgages with a 5% deposit, subject to visa, residency, income and other lending requirements.

Foreign nationals sometimes assume they need a much larger deposit because they do not have a British passport or indefinite leave to remain. That is not always the case.

Afin Bank, a lender we work with at WIS Mortgages, supports eligible foreign nationals living and working in the UK, including applicants on qualifying visas with a route to permanent residency.

Its published information says applicants with at least six months’ UK residency on a valid visa can be considered.

Acceptance depends on the relevant mortgage range, visa, income, property and overall circumstances.

On a £250,000 property, a 5% deposit would be £12,500.

Our guide to 5% deposit mortgages for Skilled Worker visa holders explains the factors lenders consider, including UK residency and the source of your deposit.

Should you wait for the government’s Your First Home scheme?

You can explore existing mortgages now before deciding whether waiting for Your First Home would suit you better.

The government’s September announcement says the proposed scheme in England is expected to support:

• A minimum 2.5% buyer deposit.
• A 20% government-backed equity loan.
• Qualifying new-build purchases from participating developers.

Further details, including implementation timings, household income limits and local property price caps, are due to be announced at the Budget. It should not be treated as an already available mortgage product.

An equity loan also creates a different financial arrangement from a standard mortgage without government equity support. It is a separate repayable commitment, rather than a free contribution towards your home.

Our Your First Home scheme guide explains the proposed structure and why the final terms matter.

For some buyers, waiting may make sense. Others may already qualify for a suitable mortgage on a property they want to buy.

Exploring your position does not commit you to applying or purchasing.

Can your rental payment history help you get a mortgage?

Yes. For some no-deposit and low-deposit products, consistent rental payments are an important part of demonstrating that you can manage regular housing costs.

If you have paid rent reliably every month while struggling to save a deposit, that payment record could help support your application.

Two important areas to prepare are your rental payment history and your credit history. They show different things: how consistently you have met your housing costs and how you have managed credit commitments.

Neither replaces the lender’s checks on your income, spending, debts and overall affordability.

How does Skipton assess your rental track record?

Skipton’s Track Record mortgage requires evidence that rent has been paid for 12 consecutive months within the last 18 months, alongside its other eligibility requirements.

It also uses your average monthly rental payment over the last six months when assessing potential borrowing.

A reliable rental record can therefore influence both whether you qualify for the product and the mortgage repayments the lender may consider.

You do not necessarily need to have lived in the same rented property throughout, but you must meet the lender’s requirements and provide acceptable payment evidence.

Can your mortgage payment be higher than your current rent?

Potentially, yes. A rental-based mortgage assessment does not always limit your mortgage payment to exactly what you currently pay in rent.

Skipton’s published criteria currently say that, in some circumstances, it may consider mortgage repayments of up to 150% of your average monthly rental payment.

For example:

This means the rent-based ceiling could be £1,500 a month in this illustration.

However, paying £1,000 in rent does not automatically qualify you for a £1,500 mortgage payment. Your income, existing commitments, mortgage term, interest rate and the lender’s other requirements may produce a lower figure.

The percentage relates to the monthly repayment, rather than the mortgage loan amount. It is also a product-specific rule, not a standard approach used by every lender.

How can you prepare your rental payment record?

• Pay your rent in full and on time. Avoid arrears and unexplained missed payments.
• Keep clear evidence. Retain bank statements and your tenancy agreement so payments can be identified.
• Keep your letting agent’s details available. A lender may accept or request confirmation from a suitably registered letting agent.
• Identify the rent element of combined payments. If one payment covers rent and bills, keep evidence showing the separate amounts.
• Discuss changes before applying. Moving in with family, stopping rental payments or changing how rent is paid could affect eligibility for a product based on recent rental history.

Your rental history can be valuable evidence. The next step is checking whether the mortgage is affordable and suitable for your circumstances.

Why does credit history matter for a low-deposit mortgage?

A strong credit history can support a low-deposit application, but lenders also assess affordability, eligibility and the property.

A small deposit gives the lender less protection if the property falls in value and has to be sold following repossession.

The strength of your application therefore matters. Lenders want evidence that you can manage your commitments and maintain repayments.

However, there is no universal credit score that guarantees a mortgage.

Lenders use their own assessment methods rather than relying solely on the number shown in a credit monitoring app. A high score cannot overcome every affordability issue or product restriction.

How to prepare your credit record

Practical steps include:

• Pay bills and credit commitments on time. Direct debits can help prevent missed payments, provided there is enough money in the account.
• Register on the electoral roll at your current address if eligible. This helps lenders verify your identity and address.
• Manage credit cards carefully. Stay within limits and avoid consistently using most of your available credit.
• Check your credit reports. Review Experian, Equifax and TransUnion records for errors, unfamiliar accounts and incorrectly recorded payments.
• Avoid unnecessary credit applications before applying. Several hard searches close together can affect how lenders assess you.
• Disclose previous credit issues early. Tell your adviser about defaults, County Court Judgments or missed payments so they can assess the relevant lender criteria.

Our guide explains how responsible credit card use can support a UK mortgage application.

You do not need to carry interest-bearing credit card debt to demonstrate responsible borrowing.

What if you have recently moved to the UK?

A limited UK credit history is different from a history of missed payments or defaults.

Some lenders may consider applicants with a shorter UK credit history, particularly where their income, documentation and wider circumstances meet the lender’s requirements.

If you are not eligible to register to vote, explain this to your adviser. It does not automatically mean you cannot get a mortgage.

Does having the deposit mean you can borrow enough?

No. You must meet the lender’s affordability assessment as well as its minimum deposit requirement.

Lenders consider income, existing debts, childcare and other regular spending when assessing affordability.

For example, a £250,000 purchase with a £5,000 deposit requires a £245,000 mortgage. Having the deposit does not establish that you can borrow £245,000.

Similarly, paying a certain amount in rent does not guarantee the lender will approve an equivalent or higher mortgage repayment.

Preparing payslips, bank statements, rental evidence and details of financial commitments can help an adviser assess your options before you apply.

If you are a foreign national, read our guide to preparing for your first UK mortgage, including the documents and financial information you may need.

What are the risks of a no-deposit or low-deposit mortgage?

The main risks are larger borrowing, potentially higher mortgage costs and a greater chance of negative equity if house prices fall.

Larger borrowing and potentially higher costs

A smaller deposit means a larger mortgage on the same property.

That can mean higher monthly repayments and more interest over the mortgage term. Higher-LTV borrowing may also carry a higher interest rate than borrowing with a larger deposit.

Compare the full cost, including interest, fees and early repayment charges, rather than focusing only on the deposit.

Negative equity if property values fall

Negative equity means your outstanding mortgage is greater than your home’s current value.

For example:

In this example, selling for £235,000 would leave a £12,000 mortgage shortfall before selling costs.

Negative equity can make selling or switching to another lender more difficult.

It does not automatically mean you must sell. If you can remain in the property and maintain repayments, its immediate impact may be limited. However, it can reduce your flexibility if you need to move or your circumstances change.

You should not rely on rising house prices to make a mortgage workable.

Other buying costs and ongoing responsibilities

A no-deposit mortgage does not mean a cost-free purchase.

Budget for legal work, surveys, moving expenses, applicable mortgage or advice fees, and property taxes where due.

Property tax rules differ between England and Northern Ireland, Scotland and Wales.

You will also need to allow for insurance, maintenance and unexpected repairs. Keeping an emergency fund can be particularly valuable when you begin with little equity.

Frequently asked questions

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

Yes. Some lenders offer 100% mortgages to eligible applicants. Requirements vary, and some arrangements involve family support or additional security.

Is a 0% deposit mortgage interest free?

No. It means you do not provide a cash deposit towards the purchase price. Interest is still charged on the mortgage.

Can I buy a home with a £5,000 deposit?

Potentially. Specific products allow a £5,000 minimum deposit, but the property price, LTV, affordability and other lender criteria must fit.

Can I buy a home with a £10,000 deposit?

Potentially. Santander’s My First Mortgage is one example of a product with a £10,000 minimum deposit. Borrowing limits, property restrictions and affordability requirements apply.

Does paying rent help me qualify for a mortgage?

Yes, particularly with products such as Skipton’s Track Record mortgage, which uses rental payment evidence as part of its assessment.

A consistent record can support your application, but the lender must still check your income, spending, credit history and overall affordability.

Can my mortgage repayments be higher than my rent?

Potentially. Skipton currently states that, in some circumstances, it may consider repayments up to 150% of average monthly rent.

This is subject to its full assessment and does not guarantee that payment level or a particular loan amount.

How much rental history do I need for Skipton’s Track Record mortgage?

Its published criteria require evidence of 12 consecutive months of rental payments within the last 18 months. Other eligibility and affordability requirements also apply.

What credit score do I need for a low-deposit mortgage?

There is no universal minimum score. Each lender uses its own criteria and considers your credit history alongside income, spending, debts and wider circumstances.

Can foreign nationals get a mortgage with a 5% deposit in the UK?

Some can. Afin Bank is one example of a lender offering eligible low-deposit options for foreign nationals. Visa, residency, income and other requirements apply.

Can I get a low-deposit mortgage with a CCJ or missed payments?

Options may be more limited, particularly at very high LTVs. The type of issue, when it happened, its value and whether it has been resolved can all matter.

Speak to an adviser before applying.

Is it better to save a bigger deposit?

A bigger deposit can reduce borrowing, improve your choice of mortgages and provide more protection against falling property values.

Whether saving for longer is worthwhile depends on your rent, savings rate, buying plans and financial circumstances.

Should I wait for the government’s 2.5% deposit scheme?

You do not have to wait to seek advice. Compare existing options with the proposed scheme once its full terms are available.

Are these mortgages available throughout the UK?

Not necessarily. Some products exclude Northern Ireland, and property restrictions vary. The proposed Your First Home scheme relates to England.

Contact Us

Find out which first-time buyer mortgage options could suit you

An early mortgage review can help you understand whether buying now is realistic or what you need to improve before applying.

You do not need to assume that a large deposit is your only route to homeownership.

There are lenders offering different ways to help eligible buyers, from no-deposit mortgages to £5,000, £10,000 and 5% deposit options.

At WIS Mortgages, we can review your deposit, income, rental payment history, credit record and residency circumstances, explain the relevant options and help you understand the costs and risks.

If buying now is not suitable, an early conversation can help you identify what to work towards.

Speak to WIS Mortgages about your first-home options.

Information checked on 19 October 2026. Mortgage availability and lending criteria can change. All applications are subject to status, affordability, property suitability and lender criteria. This article provides general information rather than a personal mortgage recommendation.

Your home may be repossessed if you do not keep up repayments on your mortgage.