United Kingdom

How to Buy a home with no money down in the UK?

Is it possible to buy a home with no money down in the UK? Yes, but only on the condition that you meet the all the eligibility criteria of a 100% LTV (Loan to Value) or No Deposit Mortgages. But the bad news is that such mortgages are very rare these days. And those which are available requires a guarantor, who is usually your family member, who owns his/her own home to be named on the mortgage too. This can put his/her own property or savings at risk if you fail to make your repayments on time.


For example, the Barclays Family Springboard Mortgage offers a 100% LTV Mortgage or No Deposit Mortgage if you are buying your first home or moving house. But it requires a guarantor, who has to put 10% of the purchase price into a savings account with Barclays. Say, if you bought a house for £150,000, your guarantor would need to put £15,000 into the savings account. Your guarantor will get this amount back with interest added after three years as long as you keep up with your mortgage payments. But if you fail to make repayments of your mortgage on time, they will recover the pending amount form the savings of your guarantor.

What if you don’t have any guarantor?

If you don’t have any guarantor to qualify for a 100% LTV (Loan to Value) or No Deposit Mortgage in the UK, you are left with the only option of first saving the minimum amount of money that you may need to pay for the down payment for your mortgage and then start looking for those mortgage options in the UK, which requires the lowest down payment.

Is there any other way to buy a home with no money down in the UK?

Yes, apart from the 100% LTV (Loan to Value) or No Deposit Mortgages, there is another way to buy a home with no money down in the UK. And the way is – Using Other People’s Money. Keep in mind that it’s going to be somebody’s money. Somebody’s money is going down, if not yours. Also, you need to be smart enough to get money from other people to buy a home with no money down in the UK. Here are some tips to help you get the money from other people to buy a house in the UK with no money down.

Find the people in your personal contacts who are looking to invest their money and offer them a lucrative deal that they can’t resist. Make sure that you approach as many people you could and collect small amounts from everyone, say, 1000 pounds from each person, and offer them a good deal. You need to use your brain to find out what kind of deal you are going to offer that’s worth their investment and risk that they are taking on you. So, who would you go to first – your mom, dad, uncle, aunt, brother, sister, colleague, boss?

You can also approach investors of your locality or a real estate investment club because these are the people who don’t have time to look for a lucrative deal but they are actually looking to invest a good amount into something that is worth their money and the risk involved. These investors can easily invest 10,000, 20,000, and even 50,000 pounds if you are smart enough to convince them to invest their money into your deal or offer.   You might have got family members, friends, colleagues or relatives who have invested a part of their savings into shares, debentures, fixed deposits, mutual funds, and other investment schemes. But they are not satisfied with the returns on their investment (ROI).

Are you smart enough to create a lucrative deal or offer that convince them to invest their money in your scheme?

The point that I want to make here is that it doesn’t require money to make money, it requires a lot of guts and courage. So, are you courageous enough to do collect money from other people to fund the purchase price of your home?

If your answer is yes, you can easily buy a home in the UK with no money down. The only thing that you need to make sure is that you are capable enough to return your investors’ money whenever they ask you for it and your deal or offer is good enough to produce the returns over investment (ROI) that you have promised to your investors. That’s the secret of buying a home in the UK with no money down!

More Resources for United Kingdom home buyers only:

Buying a home: a comprehensive UK property guide

Buying Your First House – include 2017 UK Tax update: England, Scotland, Wales, and Northern Ireland