House with no deposite

Seriously??……………… Yes, it is the first word that comes in our mind when someone asks how one can buy a home without any deposit amount. Initially, it sounds impracticable and also like a foolish hypothesis, but the new aged lending practices have taken it out from the ‘not possible’ status.

There are specific measures that can help the buyers buy a home or property without any deposit money. If you are planning to make such a purchase, follow those measures and make it happen.

Go For Gifted Deposit

It comes from your parents or grandparents, and this method is quite common in the UK. To help the children or grandchildren buy their home, the elders gift an amount of money. Use the sum as a deposit, and that solves the concern of the lender as well as the borrower.

The best part about the gifted deposit is that the borrower does not need to return the money. It means the funds do not act as the obligation, and there is no instalment thing related to them. If you can manage to do this, then go for it because this method is considered as the strongest way to get a mortgage without any down payment. 

Guarantor Pledges a Savings Account 

The guarantor needs to keep a certain amount equivalent to the deposit money in his or her bank account. That account cannot be used to borrow money, as it remains under the control of the lender until the last repayment of the mortgage.

It is also a convenient way to get the mortgage with no minimum advance payment as part of the property value.  However, as you can imagine already, it is not easy to even arrange a guarantor then how is it possible to convince the person to arrange an additional burden of pledging savings account. But it can help you get the deal.

Additional Collateral

Oh, this situation indicates even better chances of mortgage approval. Additional collateral such as an old house can change the game in your favor.  It helps to get a cheaper deal. The other conditions of the loan term and the maximum borrowing amount limit can also be extended to a higher amount.

It is a prevalent culture to pledge and present a paternal property to borrow funds for home buying. This factor drastically changes the situation. Attainment of approval becomes easy when the confidence of an added security is there with you. Submit the required property papers to the lender, and they remain with the lending company for the complete tenure. Yes, for sure, in case of prepayment, it gets back to you.


The availability of several ways makes it possible to accept the fact that mortgage can be obtained with no down payment.  However, this may mean some compromise in the interest rates, tenure period, as the lender wants to stay safe in the repayments.  Besides, the regulatory authority does not allow to offer much flexibility, and the lenders have limits on everything. But, the solution of additional collateral can be something that can help attain some flexibility in the lending policies.  Before you make the last decision take expert advice. Find a fee-free mortgage broker and make the circumstances easier. It can suggest better and can also provide multiple options.