What is a 100% LTV mortgage?

If saving for a house deposit feels out of reach, a 100% mortgage could be the helping hand you need. Also called no-deposit or zero-deposit mortgages, they let you borrow the full value of a home, with no upfront cash needed.

These mortgages are often designed with first-time buyers in mind. They are potentially suitable for long-term renters, as lenders may take into account your track record of paying rent. Whatever your circumstances, they can be ideal for people who can afford monthly repayments but haven’t been able to build up savings. Because you’re borrowing the full amount, lenders may need extra reassurance – sometimes in the form of an agreement from a family member or close friend to pay your mortgage if you miss payments.

A 100% mortgage won’t suit everyone, but if you’ve got a steady income and the right support in place, it could be a smart way to get on the property ladder sooner. Finding the right deal could make homeownership a reality faster than you thought possible.

Are you eligible for a 100% LTV mortgage?

To be eligible for any type of mortgage you will need to meet the lender’s eligibility and affordability criteria. The rules do vary between lenders, but here’s what they’ll check:

Your income

Lenders will look at what you earn when deciding how much to lend. Typically, you can borrow up to four and a half times your annual income, or combined annual income if applying for a joint mortgage. Some providers may offer you more, so comparing is essential.

Affordability

You'll need to demonstrate that you can comfortably afford all your mortgage payments, in addition to your other financial commitments like utilities childcare and existing debt repayments, for example.​

Credit history

Whilst there isn’t a specific credit score required for a mortgage, having a higher score can boost your chances of being approved. It might be worth checking to see if there is anything you can do to improve your report before you apply for a mortgage.

Every lender’s a bit different, so it’s very important to compare your options to find the right fit for your situation.

One more thing… your home could be repossessed if you don’t keep up repayments on your mortgage, so make sure you’re comfortable with what you can afford before taking the plunge.

Do I need a guarantor for a 100% LTV mortgage?

Some 100% mortgages do ask for a guarantor – say a family member – who agrees to step in if you can’t make your repayments. If you go the guarantor route, they’ll need to be able to afford your repayments on top of their own bills or mortgage, just in case you miss any.

Other types of no-deposit mortgages might ask for something different, like a family member temporarily moving savings into a linked account as a form of security. Both options are a big ask, but for some families, it’s a great way to help a loved one buy their first home without gifting a deposit.

Getting support from someone else isn’t always essential. In some cases, you won’t need family support at all, provided you can show a strong track record of paying rent and bills on time and pass the lender’s affordability checks. Every lender has their own criteria, so it’s worth comparing what’s out there.

How much can I borrow with a 100% mortgage?

Many mortgage lenders offer up to around 4.5 times your annual earnings, though some may allow you to borrow more. Going off the typical figure, if you earn £50,000, you might be able to borrow up to £225,000. If you apply jointly with someone earning £30,000, that total could rise to £360,000.

Just bear in mind that your final offer will depend on factors like your affordability, existing borrowing and deposit size. Income’s just part of the picture. Here’s what else a lender might look at when assessing your application:

  • Monthly outgoings: Lenders will consider your regular expenses like bills, credit card payments and childcare costs to make sure the mortgage is affordable.

  • Affordability stress tests: Lenders will check if you could afford your mortgage if interest rates rise. If you’re borrowing more for things like home improvements, lenders will also want to ensure you can handle the increased payments.

  • Creditworthiness: A solid credit report can really boost your chances of approval, so be sure to check it ahead of your application to see if there is anything you can do to improve your score.

What costs should I budget for when arranging a mortgage?

When applying for a mortgage, remember there are a few extra costs you’ll need to keep in mind to avoid any surprises:

  • Valuation fees: Lenders will want to know your property's value, so they'll arrange a valuation. Costs can vary, but it's wise to budget for this.​

  • Legal fees: Whether it's a solicitor or conveyancer, you'll need legal help to navigate the process.​ Legal fees for home buying are typically around £2,000 (including VAT at 20%), but the exact cost can vary depending on the property and how complex the work is.

  • Local searches: If you’re buying a property, your solicitor will also carry out local searches – typically costing around £250–£300.

  • Arrangement fees: Some lenders charge a fee to set up your mortgage. Expect to pay anywhere between £1,000 to £2,000 or more. ​

  • Early repayment charges (ERCs): Planning to pay off your mortgage early? Be aware of potential ERCs, which can apply if you overpay beyond a certain limit.

  • Survey costs: If you're considering a detailed property survey, this will be an additional expense to keep in mind.​

  • Home improvements: If you're releasing equity for renovations, remember to budget for materials, labour, and any unexpected costs.​

By considering all of these costs, you can keep your mortgage process running smoothly without any unexpected financial bumps along the way.

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Page updated on 11th September 2025, Reviewed by Clare Yates