Think you need tens of thousands saved to buy a house?
Think again.
In 2025, buying a house with little to no deposit is not just a dream — it’s happening every day.
You just need to know where to look (and what to watch out for).
Here’s exactly how people are getting on the property ladder with £0 saved — plus the pros, cons, and real-world examples.
Let’s dive in. 🏡
🎯 Step 1: Understand How “No Deposit” Buying Actually Works
In the UK, “no deposit” doesn’t mean no money at all.
It usually means no traditional 5–10% downpayment upfront.
Here’s how it can happen:
- 100% Mortgages (yes, they’re back!)
- Family guarantor mortgages
- Shared ownership schemes
- Government-backed low-deposit mortgages
Each route has different rules — and risks.
Let’s break them down.
🏦 Option 1: 100% Mortgage (Skipton and More)
Skipton Building Society re-launched the UK’s first 100% mortgage in 15 years, and in 2025, other lenders are jumping in too.
✅ No deposit needed.
✅ Available to renters with a strong rental payment history.
✅ Must have good credit and proof you’ve paid rent reliably for 12 months.
Real Example:
Jack, 28, from Manchester, used the Skipton Track Record Mortgage to buy a £180,000 flat with £0 depositafter renting for 3 years.
His rent history basically acted as his “deposit.”
Key catch:
Interest rates are higher (around 5.5–6.5%), and the affordability checks are strict.
👨👩👦 Option 2: Family Guarantor Mortgages
Known as “family springboard” or “guarantor” mortgages.
✅ A family member offers their savings or home equity as security.
✅ You still own 100% of the property.
Example:
- Mum and Dad put £20,000 into a linked account.
- After 5 years of good payments, they get their money back.
Real Example:
Priya, 26, from Birmingham, bought a £250,000 home with no deposit using Barclays’ Family Springboard Mortgage — her parents put £25,000 into a savings pot instead of giving it directly.
Key catch:
If you miss payments, your family’s savings or home could be at risk. 😬
🏘️ Option 3: Shared Ownership
✅ Buy a slice (usually 25–75%) of a property.
✅ Rent the rest from a housing association.
✅ Lower deposits (sometimes just £2,000–£5,000).
Real Example:
Liam and Sarah, both teachers, bought a 40% share of a £300,000 house in Bristol for £120,000.
Their deposit? Just £3,000.
Key catch:
- You pay rent and a mortgage.
- Selling can be more complicated later.
🏛️ Option 4: Government-Backed Low-Deposit Mortgages (95%-99% LTV)
Still live in 2025:
- 95% mortgage guarantee scheme extended.
- New 99% mortgages launched for first-time buyers.
✅ You only need 1–5% deposit.
✅ Available on homes up to £400,000.
Example:
£250,000 home ➔ £2,500 deposit with a 99% mortgage.
Key catch:
- Tougher affordability rules.
- Higher monthly repayments.
⚖️ Pros and Cons of Buying With No Deposit
✅ Pros:
- Get on the property ladder faster.
- Avoid years of painful saving.
- Lock in today’s property prices (before they rise).
- Prove yourself if you have strong rental history.
❌ Cons:
- Higher interest rates = bigger monthly bills.
- Less equity = more risk if property prices fall.
- More pressure to keep up perfect repayments.
- Family risk (if using a guarantor).
🧮 Quick Cost Example: 100% Mortgage vs 5% Deposit Mortgage
| Home Price | Type of Mortgage | Deposit | Monthly Payment (5% Interest) |
|---|---|---|---|
| £200,000 | 100% Mortgage | £0 | ~£1,170/month |
| £200,000 | 5% Deposit | £10,000 | ~£1,110/month |
Note:
These are rough figures — always check a live mortgage calculator like Habito Calculator for accurate numbers.
🔗 Trusted UK Mortgage Brokers (No-Deposit Friendly)
Here’s who’s offering no-deposit and low-deposit help in 2025:
- Skipton Building Society – skipton.co.uk
- Barclays Family Springboard – barclays.co.uk
- Habito Online Broker – habito.com
📝 Final Tips: Buying With No Deposit
- Check your credit first: (Use ClearScore or Experian.)
- Keep paying rent on time: (Track it if you’re planning to apply.)
- Get advice: (Speak to a broker to find the best no-deposit options.)
- Plan for moving costs: Solicitors, surveys, removals still cost money!
🚀 Your 2025 Homeownership Game Plan
You can own a home without £20k saved.
You just need the right strategy, the right lender, and the right timing.
🏡 Start your search for no-deposit-friendly homes today at LiveRentBuy.com — your first step to owning your dream home! 🎯
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