Can I Buy A House Without A Deposit? Yes. Really!

Saving for a deposit can feel like trying to fill a bathtub with a teaspoon—slow, frustrating, and slightly ridiculous when house prices keep climbing like they’re training for Everest. But what if I told you there are ways to buy a property without scraping together a five-figure lump sum? No, it’s not a scam. Yes, you still need to be financially responsible. And no, unfortunately, you can’t pay in vibes.

Welcome to the world of zero-deposit mortgages and creative family-backed schemes! Let’s break down how it works.

1. The Track Record Mortgage: The Renter’s Redemption

A mortgage that allows first-time buyers (or renters who haven't owned a property in the last 3 years) with a proven rental track record to buy without a deposit.

How it works:

• If you’ve been renting for at least 12 months and have a clean bill of financial health (on-time payments, steady income, not funding a secret llama farm), you may be eligible.

• The lender uses your rent payment history to judge whether you can afford mortgage repayments — because if you’ve been paying £1,000/month to rent someone else’s house, why not pay £1,000 to live in your own?

Pros:✅ No deposit required ✅ Great for first-time buyers stuck in the rent trap

Cons:❌ Limited borrowing amounts and terms e.g. 5-year rates only ❌ You still need good credit and a stable income

2. Family Boost Mortgages (AKA: “Mum and Dad, Can I Borrow Your Savings?”)

Also known as Springboard or Family Assist mortgages, these allow buyers to get a 100% mortgage if a family member is willing to help — either by stashing savings in a linked account or using equity from their home.

How it works:

• A family member puts 10% of the property value into a special interest-earning savings account.

• That money acts as security for your mortgage — but it still belongs to them and earns interest while it's tied up.

• If all goes well, they get their money back after a few years (with interest and eternal gratitude).

Pros:✅ No deposit from you ✅ Family keeps ownership of their money ✅ Potentially better rates than a 100% mortgage

Cons:❌ Risk to family member’s savings if you default ❌ Limited lender options and rates (usually 5 year fixed options only) ❌ May cause passive-aggressive dinner table comments like, “You should clean that house better — I technically own 10%”

3. Concessionary Purchase Schemes – AKA “The Discount Deposit”

If you’re buying from someone willing to give you a deal (like a landlord or a family member), some lenders will count that discount as your deposit. Yes, really.

Example:

• The property is worth £200,000.

• Your lovely landlord agrees to sell it to you for £180,000.

• That £20,000 difference? It could be seen as your deposit.

Pros:✅ No actual cash deposit required ✅ Keeps more of your savings for fees, furniture, or funky wallpaper

Cons:❌ Lender must accept the discount as a valid deposit (lender choice will be limited)

4. Shared Ownership (Not 100% Deposit-Free, But Close)

Shared Ownership allows you to buy a chunk of a property (usually 25–75%) and pay rent on the rest. While not totally deposit-free, you often only need 5% of your share, not the full property value.

Example:

• You buy 25% of a £200,000 property (£50,000)

• Deposit needed = £2,500 (5% of £50,000)

Pros:✅ Much smaller deposit✅ Helps people with modest incomes become homeowners

Cons:❌ You don’t own the whole property❌ You still pay rent on the unsold share

Final Thoughts: No Deposit ≠ No Responsibility

Buying a home without a deposit sounds like a dream, but remember: lenders will still check your income, credit score, and spending habits (yes, they’ll notice the third Deliveroo of the week). Zero deposit doesn’t mean zero strings — but it can mean an earlier start on your homeowner journey.