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A third problem is what happens if your house falls in value. You can be left in a situation known as negative equity - meaning the value of the loan you have secured on your home is larger than the value of the home. No deposit mortgages also have the same fees, interest charges and other costs that come with any other mortgage.

They can be, for example if house prices started to fall. If the property value then dropped to £90, it would be worth less than the amount you owe.

If you needed to sell the property, the amount you are likely to get for it would not pay off your mortgage in full and would therefore leave you in debt. Why is it difficult to get a mortgage without a deposit? Property developers sometimes offer to loan you enough for a deposit when you buy a new home they have built.

You will need to be able to afford your mortgage repayments and to pay off the property developer's loan as well. Help to Buy mortgages has now closed in England, Scotland and Northern Ireland but is still available in Wales until December Help to Buy could make it easier for you to get a mortgage with a small deposit.

It provides an equity loan that lets you borrow money for a deposit interest free for five years. The rest is owned by your local authority or a housing developer, and you will pay rent on the percentage of the property they own.

This means you would have a much smaller mortgage and need a smaller deposit. Here's an example:. Compare Shared Ownership mortgages. Through the scheme, the government guarantees to compensate lenders for a portion of any losses incurred if a borrower defaults on their mortgage payments and the lender has to repossess the property.

Here is how to get your first mortgage. If you have lived in a council home for more than 3 years you may be able to buy it at a discounted price. Some lenders let you use this discount as your deposit. Here is everything you need to know about the Right to Buy scheme.

Buying a property with someone else means you can save a deposit between you. You will also usually have a higher joint income, meaning you could split the cost of paying your mortgage. Alternatively, you could get a joint mortgage with a friend or relative who wants to help you get on the property ladder.

Here is everything you need to know about joint mortgages. If you are unable to use the above mortgage options, you may need a larger deposit.

Take a look at our guide on how to save enough money for a deposit as quickly as possible. Should you rent or buy?

If you are unable to find a suitable mortgage yourself you could contact a mortgage broker for help. What if you have bad credit?

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Our no deposit scheme provides your landlord with more protection than a traditional deposit. It involves you paying a lower upfront payment of one weeks' rent The story begins when a family man, Mickey Ryan, falls from grace through no fault of his own due to a series of downward spiraling events beyond his control A no deposit mortgage is sometimes known as a % loan to value (LTV) mortgage because it requires no deposit at all and involves lending the entire value of: No deposit

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