100% Mortgages
For many aspiring homeowners, saving for a deposit can feel like the biggest hurdle standing between them and their dream home.
With rising rents, increasing living costs and the day-to-day expense of raising a family, putting thousands of pounds aside for a house deposit isn't always realistic. But does that mean homeownership is out of reach?
Not necessarily.
Recently, Mortgage Cloud adviser Terrasa helped a first-time buyer family secure a 100% mortgage, allowing them to purchase their new home without needing a deposit.
A Real-Life 100% Mortgage Success Story
Our clients were renting a family home and raising a young child, with another baby on the way. Like many families across the UK, they had a stable income and could comfortably afford mortgage payments, but saving for a deposit while managing rent, childcare and household costs had proven challenging.
They had found a property they loved, valued at £250,000, but thought their lack of deposit would stop them from moving forward.
After completing a full affordability assessment and reviewing their circumstances in detail, Terrasa searched the market to identify lenders offering suitable solutions. Following careful research and lender discussions, she successfully secured a 100% mortgage offer, meaning the family could purchase their dream home without contributing a cash deposit.
For this growing family, it was the difference between continuing to rent and stepping onto the property ladder.
In this case, the clients were also able to benefit from first-time buyer Stamp Duty relief. In England and Northern Ireland, first-time buyers pay no Stamp Duty Land Tax (SDLT) on the first £300,000 of a property's value, meaning they had no Stamp Duty liability on their £250,000 purchase.
What Is a 100% Mortgage?
A 100% mortgage allows eligible borrowers to purchase a property without providing a deposit. Instead, the lender finances the full purchase price of the property.
While these products are not as widely available as traditional mortgages, a number of lenders have reintroduced innovative solutions aimed at helping first-time buyers and renters who can demonstrate affordability but have struggled to build up savings.
As with any mortgage product, lenders will assess factors such as:
- Income and affordability
- Employment status
- Credit history
- Existing financial commitments
- Property suitability
- Overall lending criteria
Because these mortgages involve a higher level of risk for lenders, eligibility criteria can be stricter than for standard mortgage products.
Why Professional Mortgage Advice Matters
Many borrowers assume that if they don't have a deposit, buying a home simply isn't possible.
In reality, the mortgage market is constantly evolving, with lenders regularly introducing new products and criteria that may not be widely advertised or available directly to consumers.
Having access to expert mortgage advice can help uncover options that may otherwise be missed.
Mortgage Cloud General Manager Dawn Gowing commented:
“We're delighted to have secured this mortgage offer for our client. Whilst 100% mortgages aren't suitable for everyone and are subject to stricter lending criteria, this case demonstrates that innovative lending solutions are still available for borrowers who may not have been able to save a traditional deposit.”
Could You Get a Mortgage Without a Deposit?
Every situation is different, but if you're currently renting, have a stable income and are wondering whether homeownership could be closer than you think, it's worth exploring your options.
At Mortgage Cloud, we help clients across the UK with:
- First-time buyer mortgages
- 100% mortgages
- Remortgages
- Home mover mortgages
- Self-employed mortgages
- New-build mortgages
- Specialist lending solutions
Whether you're buying your first home, purchasing a new-build property, moving house, remortgaging or exploring specialist lending options, our advisers are here to guide you through every stage of the process.
From your initial call, right through to completion and moving day, Mortgage Cloud is there to support you every step of the journey. Once your mortgage is in place, our Home Moving Service can help organise essentials such as utilities, broadband, council tax and removals, helping make the transition into your new home as smooth and stress-free as possible.
If you'd like to find out what may be available to you, call 03300 100 055 for a free, no-obligation conversation with one of our advisers.
Important Information
As with all mortgage applications, approval is subject to status, affordability, credit assessment and lender criteria.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.