First-Time Buyers Can Now Get 100% Mortgages in the UK – No Deposit Required
Buying your first home in the UK has become more achievable as several banks and building societies introduce low-deposit and 100% mortgage products aimed at helping first-time buyers enter the property market.
Following years of strict lending rules after the 2008 financial crisis, lenders are once again offering innovative mortgage options that reduce—or even eliminate—the need for a deposit.
Metro Bank Launches 100% Mortgage for First-Time Buyers
Metro Bank has introduced a 100% mortgage that allows eligible first-time buyers to borrow the full value of a property without paying a deposit.
The mortgage is available through a Joint Borrower, Sole Proprietor (JBSP) arrangement, where a close family member supports the application without becoming a legal owner of the property.
Key features include:
- Up to 100% loan-to-value (LTV)
- Maximum loan of £675,000
- Five-year fixed-rate mortgage
- Interest rate of 6.99% (subject to change)
While this option removes the need for a deposit, borrowers should be aware that higher loan-to-value mortgages generally come with higher interest rates.
Lloyds Introduces £5,000 Deposit Mortgage
Lloyds Bank has also launched a mortgage designed to help first-time buyers purchase a home with a minimum deposit of just £5,000.
Highlights include:
- Deposit from £5,000
- More than 98% loan-to-value
- Five-year fixed rate
- Interest rate of 5.89% (at the time of publication)
- Available on properties worth up to £300,000
The mortgage is also available through Halifax and authorised mortgage brokers.
Other UK Lenders Offering Low-Deposit Mortgages
Several other lenders have introduced competitive mortgage products for first-time buyers:
Santander
- Up to 98% loan-to-value
- Minimum deposit of £10,000
- Maximum property value of £500,000
- Five-year fixed rate from 5.49%
Skipton Building Society
Skipton offers a Track Record Mortgage, allowing eligible renters to purchase a home without a deposit.
Features include:
- Up to 100% loan-to-value
- Available to current or recent renters
- Maximum loan of £600,000
- Five-year fixed rates from 5.55%
Yorkshire Building Society
Yorkshire Building Society provides:
- Up to 99% loan-to-value
- Maximum loan of £495,000
- Five-year fixed mortgage
- Representative APR of 6.44%
What Is a Joint Borrower, Sole Proprietor (JBSP) Mortgage?
A Joint Borrower, Sole Proprietor (JBSP) mortgage allows another person—usually a parent or close family member—to help support your mortgage application without becoming a legal owner of the property.
The lender considers the income of both applicants, which can significantly increase borrowing power.
Depending on the lender, eligible joint borrowers may include:
- Parents
- Siblings
- Other close relatives
- In some cases, trusted friends
Although only one person owns the property, all borrowers remain legally responsible for repaying the mortgage, so it’s important to fully understand the financial commitment before applying.
Why More Buyers Are Choosing JBSP Mortgages
Mortgage advisers report growing demand for JBSP mortgages as rising house prices and affordability challenges make it harder for first-time buyers to secure traditional mortgages.
By combining incomes, buyers may qualify for larger mortgage amounts while entering the property market sooner.
Higher Deposits Still Mean Better Mortgage Rates
Although no-deposit mortgages can help buyers purchase a home sooner, those able to save a larger deposit generally benefit from:
- Lower interest rates
- Lower monthly repayments
- A wider choice of mortgage products
- Greater flexibility from lenders
At the time of publication:
- 95% mortgages (5% deposit) were available from approximately 4.95%–5.05%.
- Buyers with 10% deposits or more could access even lower rates and more competitive mortgage deals.
Should You Choose a No-Deposit Mortgage?
A 100% mortgage can be an excellent option for buyers who have stable incomes but struggle to save for a deposit due to rising rental costs.
However, because these mortgages typically carry higher interest rates, it’s important to compare all available options and seek independent mortgage advice before making a decision.
For some buyers, waiting longer to build a larger deposit could result in significant long-term savings.
Frequently Asked Questions
What is a 100% mortgage?
A 100% mortgage allows eligible buyers to borrow the full purchase price of a property without providing a deposit.
Which UK lenders currently offer low or no-deposit mortgages?
Current providers include:
- Metro Bank
- Lloyds Bank
- Halifax
- Santander
- Skipton Building Society
- Yorkshire Building Society
What is a JBSP mortgage?
A Joint Borrower, Sole Proprietor mortgage allows another person to support your mortgage application financially without becoming a legal owner of the property.
Are no-deposit mortgages more expensive?
Generally, yes. Because lenders take on greater risk, 100% mortgages usually have higher interest rates than mortgages requiring larger deposits.
Is saving a larger deposit still worthwhile?
Yes. Buyers with deposits of 5% or 10% or more typically qualify for lower interest rates, reduced monthly repayments, and a broader range of mortgage products.
Final Thoughts
The return of 100% and low-deposit mortgages marks an important shift in the UK housing market, offering first-time buyers new opportunities to purchase a home despite rising property prices.
While these products can make homeownership more accessible, they are not suitable for everyone. Carefully compare mortgage options, understand the long-term costs, and seek professional advice before committing to a mortgage.
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