Why we bought our first home with a 100% mortgage – despite the risks
Why we bought our first home with a 100% mortgage – despite the risks. Image source, Conroy & AmberImage caption, The couple are aware of the risks that come with their no-deposit mortgageByDaniel ThomasBusiness reporterPublished18 September 2026, 00:00 BSTUpdated 35 minutes agoUntil last year, Conroy, 32, and his partner Amber, 28, saw little prospect of owning their own home.
What happened
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. And in August they bought a four-bed home for £242,000 in Swinton on the edge of Manchester. Conroy says they plan to overpay their mortgage for the first five years to build up more equity in their home. Image source, SuppliedImage caption, Bronya and George bought their first home this year with a roughly 2% depositBronya, a civil servant, says they could have put down a bigger deposit but wanted to use their savings for a renovation project costing upwards of £20,000.
They are aware of the risks of negative equity but believe the refurbishment will boost the value of their home. Image source, SuppliedImage caption, The couple are renovating their homeWidespread uptake of low-deposit mortgages by borrowers who could not afford them was seen as a major factor in the 2008 global financial crisis. But today's deals have much stronger affordability checks and do not pose the same risks, says David Hollingworth, associate director at brokers L&C Mortgages.
The wider picture
And Lloyds won't issue one of its £5,000 deposit mortgages for new-build properties and shared ownership homes. Then they came across a relatively niche, and some experts say riskier, type of mortgage that offered a solution. The Track Record mortgage from Skipton Building Society covers 100% of the value of a property, with the borrower paying nothing upfront. The return of low-deposit dealsAccording to the Bank of England, the share of UK mortgages with deposits worth less than 10% of the property's value is currently the highest it has been since 2008, external when such loans were widely available.
It comes as lenders such as Lloyds, Santander, Skipton and Yorkshire Building Society have launched a raft of new mortgage deals over the last few years covering upwards of 95% of the value of a property, and in some cases as much as 100%. But these loans tend to charge higher rates, aren't available for all types of property or borrower, and come with risks customers should be aware of. But he is aware there is a greater risk of falling into negative equity with a no- or low-deposit mortgage.
" 'We plan to stay here our whole lives'Twenty-seven-year-old Bronya and her partner George, 29, also used a low-deposit mortgage to buy their four-bedroom house in Rhuddlan, North Wales in August.
What has been reported
Borrowers of Skipton's zero-deposit mortgage, for example, have to prove they have kept up with their rent for at least 12 consecutive months and credit payments for the last six months. Contact formContact formRelated topicsMortgagesHousing marketEconomics 30pm Laura Hunter Football Features Writer Friday 18 September 2026 09:09, UK Coventry have been dealt an extraordinarily tough opening hand, playing four of the current top five as introduction to their first Premier League campaign for 25 years, the top two away from home.
Despite being comprehensively beaten by Brighton after Taiwo Awoniyi was sent off, player of the match Bart Verbruggen was forced into six saves. Forest are yet to score a league goal at home this season. In fact, since last Christmas, the only ever-present side with fewer home points than Forest is Spurs. Get instant access to Sky Sports with no contract Home Sports Scores Watch Sky Bet More Podcasts Upcoming on Sky Get Sky Sports Sky Sports App Sky Sports with no contract Kick It Out British South Asians in Football Watch Sky Sports 👀 Sky Data Layer Sky Data Layer Viewer ➡️ Clear
They were renting in central Manchester where they work and could not afford to save up for a deposit.
What happens next
Borrowers must meet strict eligibility checks and pay a higher interest rate – in Conroy and Amber's case 5. 33% fixed for five years – but they were happy to do this. "I don't think it's dawned on us it's really ours," says Conroy, a video editor. The average deposit for first-time buyers is currently around 20%. They say they want to help first-time buyers get on the housing ladder as property prices continue to rise and while saving for a deposit remains a struggle.
Image source, SuppliedImage caption, Conroy and Amber thought they would be renting for the foreseeable futureConroy and Amber, a solicitor, have a 25-year loan with monthly repayments of £1,500 – roughly what they were paying in rent. He says they feel comfortable with the higher cost because they "earn quite well" and expect their salaries to rise.
The report has been compiled by The Daily Waves using information reported across bbc.co.uk, skysports.com. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.