No deposit? There’s a new option on the market, but is it right for you? HFA Mortgage & Protection breaks down the new 100% mortgage product and what it could mean for first-time buyers.

The phrase “100% mortgage” hasn’t been seen much in the mortgage market for years but in May 2025, it’s made a comeback.

Skipton Building Society has reintroduced a zero-deposit mortgage, giving hope to renters and aspiring first-time buyers who’ve struggled to save for a deposit.

At HFA Mortgage & Protection, we’ve taken a close look at this new product and what it means for those hoping to get on the ladder without a lump sum. While it’s exciting to see new options emerge, it’s important to know the full picture before making a move.

What is a 100% Mortgage?

A 100% mortgage is exactly what it sounds like: a mortgage that allows you to borrow the entire purchase price of a property without putting down a deposit.

Traditionally, lenders have required at least 5–10% upfront and often more, making it difficult for renters or those with high living costs to save. This new product reopens the door for those who have good affordability but limited savings.

What’s New About This Product?

Skipton’s product called the Track Record Mortgage has been designed for long-term renters who can demonstrate consistent, on-time rent payments and affordability.

Here’s how it works:

• No deposit is required

• Available to first-time buyers aged 21+

• Must have at least 12 months of rent payment history

• Requires a clean credit history (no missed payments in last 6 months)

• You can borrow up to 100% of the property’s value

• Maximum term is 35 years

It’s worth noting this isn’t a return to the risky lending of the past—the criteria is strict, and the aim is to make the product responsible and sustainable.

Who Might This Be Right For?

This mortgage could be suitable for:

• First-time buyers stuck in the “rent trap” who pay high rent but can’t save

• Individuals or couples with stable income and strong affordability

• Those with a clean recent credit history

• Renters who’ve been paying rent consistently for over a year and want to buy a home of similar or lower value

If you’re renting at £1,000 a month and looking to buy a home with similar monthly repayments, this product could help bridge that gap, especially if saving a deposit has been your only obstacle.

The Pros and Cons

The Benefits

• No deposit needed – Get on the property ladder sooner without needing to save 5–10%

• Designed for renters – Takes your existing rental history into account

• Potential to stop “wasted rent” and start investing in your own future

• Helps address the savings barrier many first-time buyers face

The Considerations

• Limited availability – Only for specific buyer types and property values

• Interest rates may be higher than for buyers with a deposit

• Greater risk of negative equity – If house prices fall, you could owe more than your home is worth

• Strict eligibility checks – Not available to everyone; affordability will be closely scrutinised

• Not available for flats or new builds in many cases

HFA Mortgage & Protection’s View: Is It a Game-Changer?

This is a step in the right direction, especially as affordability has improved for many but the deposit gap remains huge.

At HFA Mortgage & Protection, we welcome innovation in the market, especially products designed to support renters and aspiring homeowners. However, we always advise our clients to consider the long-term implications.

Borrowing 100% of a property’s value means you’re starting with no equity. That can be fine in a stable or rising market but if prices fall, you could find yourself in negative equity, which limits your options to move or remortgage later.

That said, if you have strong affordability, stable income and long-term plans, this product could help you break free from the renting cycle.

Is a 100% Mortgage Right for You?

That depends entirely on your circumstances.

As with any mortgage, we recommend speaking to an experienced adviser who can assess your full financial picture, including income, credit history, lifestyle costs and goals.

At HFA, we’ll help you understand:

• Whether you qualify for this or other low-deposit products

• What your monthly repayments could look like

• If alternative routes (like gifted deposits or shared ownership) might be more suitable

• How to manage the risks involved

Let’s Explore Your Options

If you’re ready to get on the property ladder but don’t have a deposit saved, this new 100% mortgage might be worth exploring. But it’s not the only option out there—and we’re here to help you find the right fit for your situation.

Ready to Take the First Step?

If you’re thinking about buying your first home or moving up the property ladder—the best thing you can do is start with a conversation. Getting expert mortgage advice early ensures you’re ready to act when the time comes.

At HFA Mortgage & Protection, we’re proud to offer personalised, jargon-free mortgage advice tailored to your unique goals and circumstances. Whether you’re months away from applying or ready to go now, we’re here to help you prepare, plan, and purchase with confidence.

Get in touch with us today at https://hfassociates.uk to start your journey.

Important Notices

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500, and this will be discussed and agreed with you at the earliest opportunity.

Your home may be repossessed if you do not keep up repayments on your mortgage.