How to Buy a House with No Deposit in the UK (2026)

Buying a house without a deposit in the UK is genuinely difficult — but it is not impossible. The challenge is that the 2008 financial crisis effectively ended the widespread availability of 100% mortgages, and they have never fully returned. What exists instead is a patchwork of creative routes, government schemes, and specialist products that, in the right circumstances, can get you into a home with minimal or zero upfront savings.

This guide covers every realistic option available in 2026, with honest assessments of each — including the risks and who they actually work for.

Your Options at a Glance

100% Mortgage Routes: Buying with Zero Deposit

1. The Skipton Track Record Mortgage — Best for Renters

In May 2023, Skipton Building Society launched a 100% LTV mortgage designed specifically for renters — and it is still available in 2026.

How it works:

• No deposit required
• Designed for renters aged 21+ with at least 12 months of on-time rent payments
• Monthly payments capped so they cannot exceed your average rental payments over the last 6 months
• Available on residential purchases only (not buy-to-let)
• Fixed rate for a set period; you then move to a standard variable rate or remortgage

Who qualifies:

• Must be a first-time buyer
• Minimum age 21
• Minimum 12-month consecutive track record of paying rent on time
• No missed payments on any credit commitments in the last 6 months
• Maximum loan is capped based on your rent history and income

The honest assessment: This is currently the most accessible genuine no-deposit route for renters who do not have a guarantor. The cap on borrowing linked to your rent history limits how much you can borrow — in expensive areas this may not be enough to buy a suitable home. Rates at 100% LTV are higher than at 95% LTV. But for renters who can demonstrate responsible payments, it is a real pathway.

2. Guarantor Mortgages — Best for Those with Supportive Family

A guarantor mortgage allows a family member (usually a parent) to act as security for your loan. This enables you to borrow 100% of the property’s value without a personal deposit.

Two main structures:

Property charge model: The guarantor’s property is used as security. A legal charge is placed against it. If you default and your home is sold for less than the outstanding mortgage, the lender can pursue the guarantor’s property. This is a serious commitment — the guarantor’s home could be at risk.

Savings deposit model (e.g. Barclays Family Springboard): The guarantor places a lump sum (typically 10% of the property price) in a special savings account held by the lender. The money earns interest but is locked for a set period (usually 3–5 years). Once you have built sufficient equity, it is released back. Your monthly payments are lower than with a property-charge guarantor mortgage, and the guarantor’s home is not at risk — only the deposited savings.

Key requirement for both: The guarantor typically needs to own their home outright or have significant equity in it.

Strong recommendation: Both parties should take independent legal and financial advice before proceeding. The FCA, Citizens Advice, and MoneyHelper all provide free guidance.

3. Right to Buy — For Council Tenants

Right to Buy gives eligible council and housing association tenants in England the right to purchase their home at a significant discount. The key benefit for zero-deposit buying: many mortgage lenders will accept the Right to Buy discount as your deposit, meaning you may need no personal savings at all.

Eligibility:

• Must have been a public sector tenant for at least 3 years (not necessarily with your current landlord; not necessarily continuous)
• The property must be your only or main home
• You must not have a preserved Right to Buy from a previous purchase

Discount levels (England, 2026):

• Houses: 35% discount for 3–5 years tenancy, then an additional 1% for each extra year, up to a maximum of 70% or £96,010 (whichever is lower)
• Flats: 50% discount for 3–5 years tenancy, then 2% per additional year, up to 70% or £96,010
• In London: the maximum discount is £127,940

Other parts of the UK:

• Wales: Reduced Right to Buy; discounts significantly lower than England
• Scotland: Right to Buy was abolished in 2016
• Northern Ireland: House Sales Scheme operates separately

Using the discount as a deposit: Lenders that accept Right to Buy applications will value the property at its full market value, then apply the discount. Many treat the discounted amount as equivalent to a deposit, meaning you can obtain a mortgage for the discounted purchase price with no additional funds needed.

Low-Deposit Routes: Buying with a 5% Deposit

True no-deposit buying is rare. For most UK buyers without access to a guarantor or Right to Buy, a 5% deposit is the realistic minimum — and several schemes make this achievable faster.

4. Freedom to Buy (Mortgage Guarantee Scheme) — The Mainstream 5% Route

The government permanently launched the Freedom to Buy Mortgage Guarantee Scheme in July 2025, replacing the previous temporary scheme. It encourages lenders to offer 95% LTV mortgages by backing them with a government guarantee.

Key facts:

• Available throughout the UK (England, Scotland, Wales, Northern Ireland)
• Open to first-time buyers AND home movers
• Property must cost £600,000 or less
• Must be a repayment mortgage (not interest-only)
• Must be your main residence (not buy-to-let)
• You do not apply for the scheme separately — participating lenders offer products backed by it

Current rates (early April 2026, Moneyfacts data):

• 95% LTV 2-year fix: approximately 6.1%
• 95% LTV 5-year fix: approximately 5.93%
• These are market averages; best deals will be below these figures

Important: Rates at 95% LTV are typically 0.8–1.5% higher than at 60% LTV. Over a 25-year mortgage, this meaningfully increases total interest paid. However, if house prices continue to rise faster than you can save, getting in sooner at 95% can still be the better financial decision — run both scenarios with a broker.

5. Shared Ownership — Smaller Deposit by Buying a Smaller Share

Shared Ownership lets you buy between 10% and 75% of a home and pay subsidised rent on the share owned by the housing association. Over time, you can “staircase” — buy additional shares — until you own 100%.

The deposit advantage: You only need 5% of your purchased share — not 5% of the whole property.

Example: A home worth £280,000. You buy a 25% share = £70,000. Your 5% deposit = £3,500. Compare to: a 5% deposit on the full £280,000 = £14,000.

Income eligibility (England):

• Household income of £80,000/year or less
• £90,000/year or less in London

Monthly costs: You pay a mortgage on your share plus rent to the housing association on their share plus service charges (for leasehold properties). The combined cost can be higher than a 95% mortgage on the full property in some cases — compare carefully.

Selling: You can sell your share at market value. If you have staircased to 100%, there are no selling restrictions. Below 100%, the housing association typically has the right of first refusal.

Availability: Primarily new-build properties in England. Rules differ in Scotland, Wales, and Northern Ireland — check with the relevant government bodies.

6. First Homes Scheme — 30–50% Discount on New Builds in England

First Homes offers eligible first-time buyers a 30–50% discount on new-build properties or homes previously purchased through the scheme.

Eligibility (England only):

• First-time buyer aged 18+
• Household income under £80,000/year (£90,000 in London)
• Property must cost £250,000 or less after the discount (£420,000 in London)
• Priority given to local connection (key workers, local residents) — exact criteria set by local councils

What the discount does for your deposit: On a £300,000 new-build home with a 30% discount, you pay £210,000. Your 5% deposit is then £10,500 rather than £15,000 — a meaningful saving that also reduces your mortgage and monthly payments.

Permanent discount: Unlike Help to Buy, the First Homes discount is preserved. When you sell, the buyer must also be eligible for the scheme and receives the same percentage discount. This limits your resale market but also means future eligible buyers benefit.

Finding First Homes properties: There is no central database. Check new-build developments directly and ask whether any properties are allocated to the First Homes scheme. Availability is limited and varies significantly by area.

7. Lifetime ISA (LISA) — Boosting Your Deposit Savings

A Lifetime ISA is not a mortgage product — it is a savings account with a government bonus that helps you build your deposit faster.

How it works:

• Open if you are aged 18–39
• Save up to £4,000 per year
• Government adds a 25% bonus — up to £1,000/year
• Maximum bonus over a lifetime (up to age 50): £33,000
• Use for a first home purchase costing £450,000 or less

The compounding effect: Save £4,000/year from age 25 to 30 = £20,000 saved, £5,000 in government bonuses = £25,000 total. Including investment growth in a stocks-and-shares LISA, you could have significantly more.

Rules and penalties:

• The LISA must have been open for at least 12 months before you use it to buy
• If you withdraw for any other reason (except terminal illness, or after age 60 for retirement), you pay a 25% withdrawal penalty — which takes back the bonus AND a portion of your own savings
• Can be combined with a partner’s LISA; both bonuses count toward the purchase

Providers: Several banks and investment platforms offer LISAs (Moneybox, AJ Bell, Nutmeg, Skipton, Newcastle Building Society). Stocks-and-shares LISAs offer higher growth potential but carry investment risk — appropriate if your purchase is more than 5 years away.

8. Help to Buy Wales — Equity Loan (Until September 2026)

Help to Buy Wales provides an equity loan of up to 20% of the purchase price on eligible new-build homes in Wales, repayable on sale or after 25 years.

Eligibility:

• New-build homes priced up to £300,000
• Property must have an EPC energy rating of B or above
• Purchased through a registered Help to Buy Wales builder
• 5% deposit required
• Minimum 75% repayment mortgage

Important deadline: The scheme runs until September 2026. If you are considering using Help to Buy Wales, you need to act promptly. Visit gov.wales for the current list of participating builders and eligibility details.

9. Armed Forces Help to Buy

Serving military personnel can borrow up to 50% of their annual salary (capped at £25,000) interest-free to put toward a deposit.

Eligibility:

• Current regular armed forces personnel
• At least 1 year of service completed
• At least 6 months left to serve
• Loan repaid within 10 years (deducted from salary)

Find details through the Joint Personnel Administration (JPA) system or the Armed Forces Financial Services.

What to Expect: Rates and Costs at 95% LTV

Buying with a 5% deposit means a 95% LTV mortgage — and you will pay a premium for it compared to lower LTV deals.

Rate comparison (April 2026):

Source: Moneyfacts, April 2026. These are market averages; individual rates vary by lender and applicant profile.

The case for moving quickly: In many parts of the UK, property prices have historically risen faster than most people can save. Waiting 2 years to save a 10% deposit while prices rise 5% per year means chasing a higher target. Whether to buy sooner at 95% or wait for a larger deposit depends on local market conditions, your income trajectory, and your financial resilience.

The Real Risk: Negative Equity

Buying with a small deposit means low equity. If house prices fall, you can end up in negative equity — owing more than your home is worth. This:

• Makes it impossible to remortgage (lenders won’t lend more than the property value)
• Traps you in your current mortgage deal, often at a higher rate
• Means you cannot sell without paying the shortfall from your own funds

Protecting yourself: Buy only what you can comfortably afford with a sensible buffer. Avoid the very top of your budget. A 10% deposit rather than 5% — if achievable — significantly reduces this risk.

Step-by-Step: How to Buy Your First Home in the UK

Step 1: Assess your deposit position honestly Add up all available funds: savings, LISA balance (including the government bonus), any gifts from family. Be honest about whether a guarantor arrangement is realistic and whether your family understands and accepts the risks.

Step 2: Check your credit file Get free reports from Clearscore (Equifax data), Credit Karma (TransUnion data), and MSE Credit Club (Experian data). Fix any errors. Address any missed payments or defaults before applying.

Step 3: Speak to a whole-of-market mortgage broker A good broker has access to the full market, including deals not available directly. They can compare Freedom to Buy products, guarantor mortgages, and scheme-specific lending in a single conversation. Many offer free initial consultations. Look for a fee-free, whole-of-market broker regulated by the FCA.

Step 4: Get a Decision in Principle (DIP) A DIP (also called an Agreement in Principle) confirms what a lender is likely to offer. Sellers and estate agents take buyers with a DIP more seriously. It involves a soft credit check in most cases.

Step 5: Register with estate agents and portals Set up alerts on Rightmove and Zoopla. Tell estate agents exactly what you are looking for and which scheme you are using — some schemes have specific property requirements.

Step 6: Make your offer When you find the right property, instruct a solicitor (conveyancer) before submitting an offer — having one ready speeds up the process. Confirm your DIP is current.

Step 7: Full mortgage application and survey Once your offer is accepted, submit a full mortgage application. Your lender will instruct a valuation survey. Consider also paying for a HomeBuyer Survey or Building Survey (more comprehensive) — especially on older properties.

Step 8: Exchange and completion Your solicitor handles the legal transfer. On exchange, you pay the deposit and sign contracts — at this point you are legally committed. Completion is usually 2–4 weeks later when the money transfers and you get the keys.

Stamp Duty Land Tax (SDLT) — What First-Time Buyers Pay in England

As of April 2025, first-time buyer Stamp Duty relief in England is:

• No SDLT on the first £300,000 of a property
• 5% on the portion from £300,001 to £500,000
• Standard rates apply above £500,000

On a £250,000 first home: £0 in Stamp Duty. On a £350,000 first home: £2,500 (5% of £50,000 above £300,000).

Note: different SDLT rules apply in Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax). Always confirm with your solicitor.

Frequently Asked Questions

Can I buy a house with no deposit in the UK in 2026? Yes, but options are limited. The most accessible routes are: the Skipton Track Record Mortgage for renters with a strong payment history; a guarantor mortgage where a family member secures the loan; and Right to Buy for eligible council tenants (where the discount can act as your deposit). Most buyers will need at least a 5% deposit.

What is the minimum deposit to buy a house in the UK? Most lenders require at least 5%. On a £250,000 home that is £12,500. The government’s Freedom to Buy Mortgage Guarantee Scheme (permanent from July 2025) supports 95% LTV mortgages on homes up to £600,000.

What is the Freedom to Buy / Mortgage Guarantee Scheme? A permanent government scheme backing lenders who offer 95% LTV (5% deposit) mortgages. Available on homes up to £600,000 throughout the UK. Open to first-time buyers and home movers. Average 95% LTV rates in April 2026: ~6.1% (2-year fix) and ~5.93% (5-year fix).

What is a guarantor mortgage and how does it work? A family member acts as security for your loan — either by having a legal charge placed against their property, or by depositing savings in a linked account. You get a 100% mortgage with no personal deposit. The guarantor’s assets are at risk if you default. Independent financial and legal advice is strongly recommended for both parties.

What is Shared Ownership? You buy a share of a home (10–75%) and pay rent on the rest. Deposit is 5% of your share only — not 5% of the full property. Income must be £80,000/year or less (£90,000 in London). Available primarily for new-builds in England.

What is the First Homes scheme? Eligible first-time buyers in England can purchase new-build homes at 30–50% below market value. Property must be £250,000 or less after discount (£420,000 in London). Income cap: £80,000/year (£90,000 in London). The discount is permanent and passed to future eligible buyers on resale.

Can I use a Lifetime ISA to buy a house? Yes — for properties costing £450,000 or less. Save up to £4,000/year; government adds a 25% bonus (up to £1,000/year). Must be open for 12 months before use. Withdrawal for anything other than a first home, terminal illness, or retirement (60+) incurs a penalty.

Who qualifies for Right to Buy? Eligible council and housing association tenants in England who have been public sector tenants for at least 3 years. Discounts up to £96,010 (£127,940 in London). Many lenders accept the discount as a deposit. Right to Buy does not operate in Scotland; reduced discounts in Wales.

Is it risky to buy with a small deposit? The main risk is negative equity — if prices fall, you may owe more than the home is worth. This can trap you in your current mortgage deal and prevent selling or remortgaging. Buying with a 10% deposit rather than 5% significantly reduces this risk. Ensure your monthly payments are comfortable with a buffer; do not overstretch.

Are there schemes for buyers in Scotland, Wales, or Northern Ireland? Yes. Scotland: LIFT schemes (shared equity). Wales: Help to Buy Wales (equity loan, until September 2026); Homebuy Wales. Northern Ireland: Co-Ownership Housing. The Freedom to Buy Mortgage Guarantee Scheme applies across the UK.

FAQ:

Can I buy a house with no deposit in the UK in 2026?

“Yes, but it is more limited than in previous years. The main routes are: a 100% (no deposit) guarantor mortgage where a family member secures the loan against their property or savings; the Skipton Building Society Track Record Mortgage for renters; and Right to Buy for eligible council tenants (where the discount can act as the deposit). Most buyers will need at least a 5% deposit through the government’s Freedom to Buy / Mortgage Guarantee Scheme.”

What is the minimum deposit to buy a house in the UK?

“The minimum deposit most lenders accept is 5% of the property’s purchase price. On a £250,000 home that is £12,500. The government’s permanent Mortgage Guarantee Scheme (also called Freedom to Buy), launched in July 2025, encourages lenders to offer 95% LTV (loan-to-value) mortgages nationwide on homes up to £600,000.”

What is the Freedom to Buy / Mortgage Guarantee Scheme?

“The Freedom to Buy Mortgage Guarantee Scheme is a permanent government scheme launched in July 2025 that backs lenders offering 95% LTV mortgages (5% deposit). It replaced the previous temporary mortgage guarantee scheme. The scheme applies to homes up to £600,000 throughout the UK and is available to both first-time buyers and home movers. You do not apply for the scheme directly — participating lenders offer products backed by it. Average rates at 95% LTV were approximately 6.1% (2-year fix) and 5.93% (5-year fix) in early 2026.”

What is a guarantor mortgage and how does it work?

“A guarantor mortgage allows a family member or close friend to act as security for your loan. The guarantor does not make monthly payments on your behalf, but they become liable if you default. Security is provided in two ways: a legal charge against the guarantor’s property (putting their home at risk if you default), or a savings deposit placed in a linked account (held until you build enough equity). Some products, like the Barclays Family Springboard, use this second model. The risk to the guarantor is significant — independent legal and financial advice for both parties is strongly recommended.”

What is Shared Ownership and how much deposit do I need?

“Shared Ownership lets you buy a share of a home (between 10% and 75%) and pay reduced rent on the remaining share, with the option to buy more shares over time (staircasing). You need a deposit of at least 5% of the share you are buying — not 5% of the full property price. For example, buying a 25% share of a £240,000 home means your share is £60,000 and your 5% deposit is just £3,000. Income must be £80,000 or less (£90,000 in London). Available in England; different rules apply in Scotland, Wales, and Northern Ireland.”

What is the First Homes scheme?

“First Homes is a government scheme in England offering eligible first-time buyers a 30–50% discount on new-build properties. Properties must be priced at £250,000 or less after the discount (£420,000 or less in London). You must be a first-time buyer over 18, earn under £80,000/year (£90,000 in London), and buy in England. The discount is preserved in perpetuity — when you sell, the discounted price passes to the next eligible buyer. The lower purchase price means a smaller absolute deposit requirement.”

Can I use a Lifetime ISA (LISA) to buy a house?

“Yes. A Lifetime ISA lets you save up to £4,000 per year and the government adds a 25% bonus — up to £1,000 per year. You can use a LISA for a first home purchase costing £450,000 or less. To benefit from the bonus, you must have held the LISA for at least 12 months. If you withdraw for any other reason (except terminal illness or retirement after 60), you lose the bonus and pay a withdrawal penalty. You can open a LISA if you are aged 18–39.”

Who is eligible for Right to Buy and how does the discount work?

“Right to Buy allows eligible council tenants in England to purchase their home at a discount. To qualify, you must have been a public sector tenant for at least 3 years (does not need to be continuous). The discount depends on how long you have been a tenant and the type of property: up to £96,010 discount (£127,940 in London) for houses; slightly lower for flats. Many lenders will accept the Right to Buy discount as the deposit, meaning you may need no savings at all. Reduced Right to Buy discounts apply in Wales; the scheme does not operate in Scotland or Northern Ireland.”

What is the Track Record Mortgage from Skipton Building Society?

“The Skipton Track Record Mortgage (launched 2023, still available in 2026) is a 100% LTV mortgage designed for renters aged 21+ who have a 12-month track record of on-time rent payments. You do not need a deposit. The amount you can borrow is capped so that monthly payments do not exceed your average rental payments over the last 6 months. It is only available on properties where you are the buyer, not a buy-to-let. This is currently the most accessible 0% deposit route for renters who do not have a family guarantor.”

Is buying with no deposit a good idea in the UK?

“It depends on your circumstances. The main risks are: starting with zero equity (a modest house price fall puts you in negative equity), higher interest rates at 95–100% LTV compared to lower LTV deals, and higher monthly payments. The main benefit is getting on the property ladder sooner — in many parts of the UK, house prices rise faster than most people can save. If you can afford the monthly payments comfortably and have stable employment, buying with a 5% deposit or through a guarantor arrangement can make financial sense. A whole-of-market mortgage broker can help you compare the long-term cost of all options.”

Are there any government schemes to help first-time buyers in Wales, Scotland, or Northern Ireland?

“Yes. Wales: Help to Buy Wales (equity loan up to 20% on new builds up to £300,000, running until September 2026); Homebuy Wales. Scotland: LIFT schemes (Low-cost Initiative for First Time Buyers) — New Supply Shared Equity and Open Market Shared Equity. Northern Ireland: Co-Ownership Housing (shared ownership scheme). The Mortgage Guarantee Scheme and Right to Buy apply across the UK, though Right to Buy does not operate in Scotland. Always check directly with the relevant devolved government for current scheme status.”

The information in this article is for educational purposes only and does not constitute financial or mortgage advice. Scheme eligibility, interest rates, and government programmes change. Always verify current scheme details with GOV.UK, your devolved government, or a FCA-regulated mortgage broker. Your home may be repossessed if you do not keep up repayments on your mortgage. Last verified: April 2026.