🏠 How First-Time Buyers Can Get on the Property Ladder with Little or No Deposit
- Lucy Baldwin
- 4 days ago
- 2 min read
For many first-time buyers, saving for a deposit can feel like an impossible task. Rent, bills, and the rising cost of living can make it difficult to put money aside, even when you’re earning a good income.
The good news is that some lenders now offer no-deposit or low-deposit mortgages, designed specifically for people who can afford rent but haven’t been able to save a large lump sum for a deposit.
💡 What is a No-Deposit Mortgage?
A no-deposit mortgage allows you to buy your first home without needing to put down a deposit. Instead of saving thousands of pounds upfront, the lender uses your rental payment history to show that you can manage monthly mortgage repayments responsibly.
These mortgages are aimed at first-time buyers who:
Are currently renting
Have a track record of on-time rent payments (usually at least 12 months)
Have a stable income and good credit history
Can afford the monthly mortgage repayments
📊 Example: From Renting to Owning
Let’s take a typical example.
A couple, both aged 34, are working full-time, have no debts, and are renting together for £900 per month. Despite managing their finances well, they’ve struggled to save enough for a deposit.
Under new no-deposit mortgage schemes, they could borrow around £190,000 — with no deposit required and even £1,000 towards legal fees included.
Instead of continuing to pay rent, that same £900 a month could be going toward their own home.
💬 Why Lenders Offer These
Lenders recognise that many renters are already demonstrating financial responsibility by paying rent that’s equal to, or even higher than what a mortgage repayment would be. By looking at your rental record, they can assess affordability in a new way that reflects real-life spending habits.
⚖️ Things to Keep in Mind
While no-deposit mortgages can open doors, there are a few important things to consider:
Interest rates can be slightly higher than traditional mortgages
Not every lender offers them — your mortgage adviser can help identify who does
You’ll still need to budget for other costs (legal fees, surveys, moving expenses)
Your home may be repossessed if you fail to keep up repayments on your mortgage
✅ Take the Next Step
If you’re currently renting and dream of owning your own home, it might be time to explore your options.
As a qualified mortgage adviser, I can help you understand how much you could borrow, which lenders are offering deposit-free products, and what steps to take next.
📩 Get in touch today to find out how you could make the move from renting to owning — possibly sooner than you think.
Terms and conditions apply. This example is for illustrative purposes only. Individual affordability and eligibility will vary depending on personal circumstances.
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