100% Mortgages Are Back – What You Need to Know
Buying your first home can feel like a big mountain to climb — especially when it comes to saving up for a deposit. But there’s some good news on the horizon…
100% mortgages are back in the UK for the first time in years, and they could be a game-changer for first-time buyers. In this blog, we’ll explain what they are, how they work, and whether they might be right for you.
What is a 100% Mortgage?
A 100% mortgage is a loan that covers the full cost of your home, so you don’t need a deposit to get started. That means if the property is worth £200,000, you could borrow the whole £200,000 — no upfront cash needed.
Sounds too good to be true? Let’s take a closer look.
Why Are 100% Mortgages Making a Comeback?
In today’s market, rent is high, and it’s harder than ever to save for a deposit. Lenders are starting to recognise this, and a few are now offering mortgages to help buyers who can afford monthly payments but just haven’t managed to save enough yet.
Who Can Get One?
Not everyone will qualify, but here’s a general idea of what’s needed:
- You’ll need to be employed and earning at least £24,000 a year
- The property must be worth over £75,000
- You might need to show a good track record of paying rent on time
- These mortgages are usually fixed for a long time (5 or 10 years) to help with budgeting
What Are the Pros?
Let’s start with the benefits:
- No deposit needed – you can buy sooner without saving thousands
- Fixed monthly payments – makes it easier to budget
- Get on the property ladder – even if you thought it was out of reach
Are There Any Risks?
Yes – and it’s important to be aware of them:
- If house prices fall, you could end up in negative equity (owing more than your home is worth)
- Interest rates on 100% mortgages are usually higher
- You’ll need to be confident you can afford the repayments for the long term
Is a 100% Mortgage Right for Me?
It really depends on your situation. A 100% mortgage could be perfect if:
- You can afford monthly payments
- You’ve been renting for a while but haven’t managed to save
- You want to get on the ladder sooner rather than later
But it’s not the best fit for everyone. That’s why speaking to a mortgage adviser is a smart move. We’ll help you understand what’s right for you — with no pressure, no jargon, just honest advice.
Let’s Talk
If you’d like to explore your options, we’re here to help. At The Mortgage Lodge, we make mortgages simple, personal, and stress-free.
Give us a call or send us a message — we’d love to hear from you.