{
  "id": 8138763,
  "title": "Why we bought our first home with a 100% mortgage - despite the risks",
  "url": "https://urgent.news/2026/09/17/why-we-bought-our-first-home-with-a-100-mortgage-despite-the-risks-8138763",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T23:00:53.000Z",
  "source": {
    "name": "BBC News",
    "slug": "bbc-news",
    "url": "https://www.bbc.co.uk/news/articles/cvj64w204y58o?at_medium=RSS&at_campaign=rss"
  },
  "original_language": "en",
  "account": "Until last year, Conroy, 32, and Amber, 28, struggled to envision owning a home. They were renting in Manchester, unable to save for a deposit. Their search led them to a niche, potentially riskier mortgage - the Track Record option from Skipton Building Society. This mortgage covers 100% of the property's value, with no upfront deposit required. Borrowers face strict eligibility checks and a higher interest rate - in their case, 5.33% fixed for five years. They opted for this deal and purchased a four-bedroom home for £242,000 in Swinton, on the outskirts of Manchester.\n\nThe Bank of England reports that the percentage of UK mortgages with deposits worth less than 10% of the property's value has reached its highest level since 2008, just before such loans were commonly available. The typical deposit for first-time buyers stands around 20%. This trend comes as lenders like Lloyds, Santander, Skipton, and Yorkshire Building Society have introduced new mortgage deals offering up to 95% or even 100% of a property's value for first-time buyers. These lenders aim to help individuals secure homes despite the challenges of saving for a deposit. However, these loans typically carry higher rates, aren't available for all property types or borrowers, and involve risks borrowers should be aware of.\n\nConroy and Amber, a solicitor, have a 25-year loan, with monthly repayments of £1,500, comparable to their previous rent. They feel comfortable with the higher cost as they earn well and anticipate salary growth. However, they acknowledge the potential risk of negative equity, which occurs when the property's value falls below the outstanding loan. To mitigate this risk, they plan to overpay their mortgage for the first five years to build more equity. They believe house prices in their area won't drop, as they've thoroughly researched the region.\n\nBronya and George, both 27, also used a low-deposit mortgage to purchase their four-bedroom house in Rhuddlan, North Wales, in August. Lloyds lent them £258,000, or roughly 98% of the property's value, over a 33-year term, requiring only a £5,000 deposit. They pay an interest rate of 5.89%, fixed for five years, with monthly repayments of £1,400, similar to their previous rent. While they could have made a larger deposit, they chose to allocate their savings towards a renovation project costing over £20,000. Both are aware of the risks of negative equity but are confident that the renovations will increase their home's value. They plan to remain in their new home for their entire lives, prepared to weather any fluctuations in the property market.\n\nHistorically, widespread use of low-deposit mortgages contributed to the 2008 global financial crisis. However, modern deals come with stronger affordability checks and pose fewer risks. David Hollingworth, associate director at L&C Mortgages, states that lenders like Skipton's zero-deposit mortgage require borrowers to demonstrate uninterrupted rent payments for 12 months and credit payments for the past six months. Lloyds, too, won't issue low-deposit mortgages for new-build properties or shared ownership homes. Hollingworth believes lenders are recognizing that some individuals have good affordability but struggle to save for a deposit while managing rent and living costs. He urges borrowers to think carefully about monthly payments, interest rate fluctuations, and their first-time home-buying situation.",
  "summary": "The share of UK mortgages with smaller deposits is the highest it's been since 2008. The BBC spoke to borrowers about how they manage the risks.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "BBC Business",
        "title": "Why we bought our first home with a 100% mortgage - despite the risks",
        "url": "https://urgent.news/2026/09/17/why-we-bought-our-first-home-with-a-100-mortgage-despite-the-risks",
        "published": "2026-09-17T23:00:53.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}