100% no-deposit mortgage - what you need to know

Skipton Building Society recently announced a 100% mortgage deal aimed at Renters who have been struggling to save for a deposit.  It's the UK’s first no-deposit deal (without a guarantor's backing) since 2008.

Who can get it?  How does it work?

Skipton's 100% mortgage is available to first-time buyers who have paid their rent in full (and on time) for at least 12 months. It’s a five-year fixed mortgage and works similarly to other fixed mortgage deals available, meaning that you pay the same interest rate for a five-year period. The main difference - and of course the news that’s making headlines – is that Skipton's new deal DOESN'T require a deposit!

If you’re a renter who has paid their rent in full - and on time - for at least 12 months and are struggling to save for a deposit (or have a deposit of under 5%), then you may be eligible.

To get one of these mortgages, you: 

  • Need to be a first-time buyer and 21 years of age or above (this applies to all applicants).
  • Need to have been renting for at least 12 consecutive months out of the past 18 and be up to date on all rental payments during this period. Proof of this will be required, which could be a bank statement or confirmation from a letting agent.
  • Need to be up to date for at least 12 consecutive months out of the past 18 on household bills, such as council tax and electricity and/or gas. Again, proof will be required.
  • Can't have missed any other repayment commitments over the past 6 months – such as Netflix subscriptions, mobile phone repayments and so on. (Any defaults will show on your credit report).
  • Aren't looking to buy a new-build flat.


Your monthly rent = How much you can borrow

Usually when applying for a mortgage, the maximum amount you can borrow is based on your income and outgoings and a lender's specific affordability calculations.

Skipton's 100% mortgage works differently though, as the amount you can borrow maxes out at the equivalent of your monthly rent cost. For example, if you pay £1,000 a month rent, your Skipton 100% mortgage couldn’t cost you more than the equivalent of £1,000 a month either. Below we show how much you might be able to borrow based on your monthly rent. 

How much could you borrow with a Skipton 100% mortgage?*

Monthly rent        

Maximum mortgage













*Based on a 25-year mortgage term, is a rough guide and Skipton's specific affordability calculations might mean you're not able to borrow as much as above.

With that said, even if your rent is £1000 a month, there's no guarantee you'll be able to borrow the equivalent amount on this mortgage, as you'd still need to pass Skipton's own affordability tests. If Skipton has any concerns about your ability to repay, this may reduce the amount they are willing to lend you. It's also worth noting that the maximum you can borrow is £600,000. 

Could this be the right move for you?

Whilst undoubtably the first 100% mortgage product back in the market is a fantastic opportunity for many, everyone’s situation and circumstances are different, and whilst this may seem like the perfect solution for you, there may be better options out there. Our mortgage and financial advisor, Suzanne King, is on hand to provide tailored and personal advice based on your circumstances and set you on the right path to owning your first home. Get in touch with Suzanne here.

Posted on: 11 May 2023