0% Deposit Mortgage UK: How Renters Are Buying Homes Without Saving for a Deposit

Mortgage Light • May 15, 2025

Saving for a deposit is the biggest hurdle for many first-time buyers in the UK. But with the introduction of the 100% Loan-to-Value (LTV) mortgage , also known as the no-deposit mortgage , that barrier has been removed for eligible renters. First launched in 2023, this mortgage product allows qualified buyers to purchase a home without needing to save for a deposit.

What Is a No-Deposit Mortgage?

A no-deposit mortgage is a five-year fixed-rate mortgage designed for first-time buyers who have a strong rental payment history. Instead of relying on savings, lenders assess whether applicants can afford monthly mortgage payments based on their past rental affordability .

This product reflects the reality of today’s housing market: many renters can afford a mortgage but are unable to save due to rising living costs. By using rental history as proof of affordability , this mortgage provides a direct route to homeownership.

Who Is Eligible?

Applicants must meet strict criteria:

  • Be aged 21 or over
  • Have not owned a property in the UK within the last three years
  • Have made at least 12 consecutive months of rent payments within the last 18 months
  • Have no missed credit payments in the last six months
  • Be applying for a property up to £600,000
  • Mortgage payments must be equal to or lower than the average rent paid over the past six months

No guarantor or family assistance is needed. Eligibility is based solely on the applicant’s financial history and rental payment record.

No-Deposit Mortgage for Shared Ownership

This 0% deposit mortgage is also available for certain shared ownership properties. Buyers can purchase a portion of a home, rather than the full market value, combining mortgage payments with rent on the remaining share. This makes it a viable option for buyers pursuing a part-buy, part-rent approach.

Think this could be right for you? Contact Mortgage Light today to speak with an adviser who can guide you through the options available and assess your eligibility.

For more insights, head over to our TikTok , Instagram or Facebook , where we share how first-time buyers are getting on the ladder in ways you might not know about.

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