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Some encouraging news has emerged for renters looking to step onto the property ladder: lenders are continuing to introduce new 0% deposit mortgage options, specifically designed to help long-term tenants become homeowners without needing to save a traditional deposit.
One of the latest launches comes from Melton Building Society, which has introduced a mortgage product allowing eligible renters to borrow 100% of a property’s value. In simple terms, that means no deposit required — a significant shift from the standard 5–10% upfront most buyers need.
🔷 Why This Matters
👉 A Solution to the Deposit Barrier
For many renters, the biggest obstacle to buying isn’t affordability of monthly payments — it’s saving the lump sum deposit while paying high rent. A 0% deposit mortgage could remove that hurdle and shorten the journey to homeownership.
👉 Rent Payments Now Count
Some of these products assess applicants based on their track record of consistent rental payments. This recognises that many renters are already demonstrating the ability to meet monthly housing costs reliably.
👉 More Routes Onto The Ladder
We’re seeing lenders explore more flexible and innovative options to support aspiring buyers. That increased creativity in the mortgage market is a positive sign for overall accessibility.
🔷 A Boost For First-Time Buyers
With rental costs remaining high across much of the UK, many tenants are understandably frustrated at feeling “stuck” renting. Products like this provide an alternative route — particularly for financially stable renters who simply haven’t been able to accumulate savings quickly enough.
While these mortgages often come with slightly higher interest rates than traditional deposit products, they represent an important expansion of choice. And in any market, more choice is good news.
🔷 Important To Consider
As with any mortgage product, it’s vital to understand the full picture:
Seeking professional advice is essential to ensure it’s the right option for your circumstances.
🔷 In Summary
The arrival of more 0% deposit mortgage options is a welcome development for renters eager to buy. By recognising strong rental payment histories and reducing upfront costs, lenders are opening new doors for first-time buyers in 2025.
If you’re currently renting and wondering whether homeownership might be closer than you think, now could be the perfect time to explore your options.
✨ If you’re thinking about making a move and want a clear picture of what you can afford — and what your monthly repayments could look like — why not speak to us? Our friendly, experienced in-house mortgage specialists are here to offer you a free, no-obligation consultation, giving you the confidence to take your next step with ease. Contact your local branch of Hannells today.
Get in touch with your local branch of Hannells by clicking HERE
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