Getting on the property ladder is a dream for many people, but with ever-increasing interest rates in the past few years – as well as the rising cost of living – many first-time buyers feel this goal is more out of reach than ever.
Whilst it’s undeniably difficult to save money in the current climate, fortunately, it’s not impossible to make your dreams of homeownership a reality without a large or even no deposit at all.
In this article, our experts at Stapleton Derby share their top tips and advice for buying a house with no money, to give you the confidence to take your first steps in buying your first home.
Look into a guarantor mortgage
As of June 2025, mortgage lenders are now offering guarantor mortgages (or 100% mortgages, as they’re more commonly known) for those who don’t have enough income to qualify for a mortgage on their own.
With a guarantor mortgage, a close friend or family member provides security to cover any shortfalls, allowing you to borrow the full purchase price of a property without having to put down a hefty deposit, so long as your guarantor agrees to pay your mortgage if you can’t.
It’s important to note that these mortgages often carry higher interest rates, meaning your monthly repayments will be much more expensive, and it may put their assets at risk if you default.
But still, this means you can purchase a property with no money down.
Consider shared ownership schemes
There are also many government-backed schemes to help people with limited funds, and shared ownership is one of them.
Shared ownership means you only purchase a share of a property (usually between 10% and 75%), which is perfect for those who can’t afford a full deposit in addition to monthly mortgage repayments.
So, you’ll only pay a mortgage on the part of the house you own, and pay rent (at a reduced rate) to a landlord or housing association for the part you don’t.
Negotiate a rent-to-buy option with the seller
A less traditional solution to buying a house with no deposit would be to negotiate a rent-to-buy deal with the sellers of the property you’re interested in.
This allows you to rent your dream home for a fixed term, with the option to purchase the property for the pre-agreed price at the end of your agreement.
Typically, there’s an initial up-front payment involved and monthly rent payments, which may be credited towards the eventual purchase price.
So, whilst this strategy isn’t the standard way to purchase a property, and requires a careful legal setup, negotiating a rent-to-buy deal is one of the most affordable ways to get yourself on the property ladder without an immediate deposit.
Explore help-to-buy schemes
The government offers several schemes that can reduce your cash needs when buying a house.
If you’re a first-time buyer, a LISA (Lifetime ISA) is a great option to top up your savings, and the government will add a 25% bonus (or up to £1,000 per year) on top of your contributions for ‘free’ deposit money.
So, although it’s not a no-money method of buying a house, you’ll still be able to save up a lot faster.
Several banks and building societies offer Lifetime ISA accounts to their customers. Just make sure you meet all the eligibility criteria, get to saving, and you’ll have the keys in your hands in no time!
Need expert advice?
Whether you’re looking for houses for sale in St Helens or the surrounding areas in Merseyside, or need expert financial advice when searching for your dream home, our friendly team is here and would be more than happy to help.
Contact us today by calling 01744 883 322 or emailing info@stapletonderby.co.uk, and we’ll be in touch to answer your questions as soon as possible.
