Property Buying Guide

Building  Deposit: Finding ‘no-deposit' Options.

If you cannot raise a deposit, some mortgage lenders do offer 100+ per cent mortgages where no deposit is required but this will be dependent on your circumstances and may result in a higher interest rate because of the risk that the lender is taking. Some lenders will lend considerably more than the value of the property – to the right people. 

A major disadvantage of 100 per cent + mortgages is that if the value of your property falls, you may find yourself in negative equity. This means that you will owe more than you borrowed and you still have to pay back the lender the original price of the property. If you decide to take out a 100 per cent mortgage you should consider fully what you would do if house prices did not rise, as potentially you could be stuck with a house worth less than you owe on the mortgage outstanding.

There may be many routes available for you even if you find yourself without a deposit. We have listed some ideas for you on this website but nothing will beat getting proper financial advice tailored to your circumstances. Do not feel that because you may have little or no deposit monies that there are no options available to you. Talk to a good mortgage advisor, who will be able to explain the possible options in more detail.

Other options of course are the gifted deposit or shared ownership.

If you are a key worker or may be considered to be in housing need, a shared ownership scheme may offer you a ‘no-deposit' option.

In some instances you may be able to borrow a deposit in order to buy a first home. It is often the case that cash-back offers, gifted deposits or 100%+ mortgages mean you are able to pay back the loan when you purchase your first home. Get a quote for a personal loan. 

Find out more about how to build a deposit - or even get away without needing one:

Savings l Extra work, selling things, cutting down on spending, cutting down on debt l Gifted Deposits l A loan l Investing Abroad l   Reducing the size of mortgage deposit needed