UK Mortgages by Deposit Situation

How does my deposit affect which UK lenders might lend to me?

Lender appetite changes at a few LTV breakpoints. Up to 80% LTV (a 20% deposit), 72 of the 75 lenders whose criteria we track have products, and rates are generally lower than at higher LTVs. At 90% LTV (a 10% deposit) it is still 63, but rates tend to be higher. Above 90% the choice is narrower but still wide: 57 have products up to 95% LTV (a 5% deposit), though rates are higher and some products have tighter criteria. Only above 95% does it drop to a handful. 10 of the 75 lenders whose criteria we track offer 100% products (Barclays, Bath BS, Beverley BS, Family BS, Hanley BS, Loughborough BS, Melton BS, Metro Bank, Skipton and Tipton Coseley BS). Of those, 6 need a family member's savings or property as security, and Metro Bank needs a family member as a joint borrower. Accord's £5k Deposit mortgage goes to 99%, and Leeds Start and Cambridge First Step to 98%. April Mortgages also offers a 100% No Deposit mortgage; it isn't among the lenders whose criteria we track.

Can I get a UK mortgage with a gifted deposit?

Almost every UK lender accepts a deposit gifted by an immediate family member (parent, grandparent, sibling). The gifter signs a deed of gift, evidences source of funds, and confirms they have no future claim on the property. Non-family gifts (friends and other third parties) are far more restrictive. The pool drops to 10 lenders, each wanting a documented relationship and tighter source-of-funds evidence. LTV varies by lender: 7 of them will still go to 95%.

What is a concessionary purchase?

A concessionary purchase is when a family member sells you a property below market value, with the discount counting as your deposit. For example: parent owns a flat valued at £200,000 and sells it to you for £160,000. The £40,000 gifted equity acts as a 20% deposit and your mortgage is on the £160,000 purchase price. 59 of the 75 lenders whose criteria we track may consider this structure, based on their published criteria, most often for sales between immediate family. Some lenders extend it to wider relatives at tighter LTV. The key documentation is a recent independent valuation, a signed deed of gift covering the discount, and evidence the seller has no continuing financial interest.

Are 100% LTV (no deposit) UK mortgages real?

Yes, but only from a handful of lenders. Skipton Track Record (renters with 12 months of rent paid in the last 18 months, loans up to £600,000), Melton BS (first-time buyers, no new build), Hanley BS Rent to Own (renters) and April Mortgages' No Deposit mortgage (10- or 15-year fixes, loans £50,000 to £600,000, houses only, no new build) lend up to 100% without family help. Barclays, Bath BS, Beverley BS, Family BS, Loughborough BS and Tipton Coseley BS offer 100% products backed by a family member's savings or property, as a guarantor or security.

Metro Bank lends up to 100% LTV (loans up to £675,000) on a Joint Borrower Sole Proprietor basis. One or more immediate family members who own their own homes join the mortgage as joint borrowers, with at least £75,000 income between them. They are liable for the payments but not on the deeds. It's a 5-year fix on capital repayment over up to 35 years, for a purchase or a like-for-like remortgage. You can't own another property on completion, and new builds, flats above commercial premises and non-standard construction are out (minimum 99-year lease).

100% LTV is genuinely available on niche products with tight eligibility, but not as a mainstream option.