For the first time in years, 100% mortgages – also known as no-deposit mortgages – are back on the UK market. This news has sparked a lot of interest, especially among first-time buyers who’ve been struggling to save a large deposit while rent and living costs remain high.
But are 100% mortgages a good option? And what do self-employed buyers need to know?
At Mallard Mortgages, we break down what’s happening and what it means for you.
What Is a 100% Mortgage?
A 100% mortgage is a home loan that allows you to borrow the full value of a property, without needing to put down a deposit.
Historically, these types of mortgages were seen as high-risk and disappeared after the 2008 financial crash. But now, some lenders are cautiously reintroducing them under strict conditions.
Who Are These Mortgages Aimed At?
The return of 100% mortgages is designed to help:
- First-time buyers who can afford monthly repayments but can’t save a deposit
- Long-term renters with a solid payment history
- Low-deposit applicants with strong affordability and creditworthiness
Some of the new products on the market use rent payment history as proof of affordability — an innovative approach that recognises how difficult it is to save while paying high rent.
🏡 Important: These mortgages are not available to everyone and come with stricter affordability checks.
Are Self-Employed Buyers Eligible?
Yes — but with caution.
If you’re self-employed, you may still be eligible for a 100% mortgage, but you’ll need to:
- Prove reliable income (typically at least 12 months’ trading history, often more)
- Show a strong credit profile
- Pass detailed affordability assessments
- Possibly provide evidence of consistent rent payments
Because lenders view self-employed income as less predictable, it’s even more important to prepare your documentation carefully and work with a broker who understands this type of lending.
The Pros and Cons of 100% Mortgages
✅ Pros:
- No need to save a large deposit
- Get on the property ladder sooner
- Ideal for renters with a solid payment track record
❌ Cons:
- Higher interest rates than standard mortgages
- Increased risk of negative equity if house prices fall
- Limited lender options
- Tighter lending criteria
Our Advice: Proceed with Caution, But Don’t Dismiss It
At Mallard Mortgages, we welcome any new option that helps people take their first step onto the property ladder — especially self-employed buyers, who are often underserved by mainstream lenders.
But 100% mortgages aren’t a one-size-fits-all solution. They might not be the cheapest or most suitable option in the long term, and your future plans, income stability, and budget need to be considered carefully.
That’s where we come in.
Thinking About a No-Deposit Mortgage?
We’ll help you explore:
- Whether you’re eligible
- Which lenders offer 100% mortgages
- How your self-employment affects your chances
- What alternatives might be more suitable for your situation
📞 Speak to our expert team today
📧 contact@mallardmortgages.co.uk
🌐 Or visit: mallardmortgages.co.uk
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