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Thu, 17 Sep 2026

Thu, 17 Sep 2026 Why we bought our first home with a 100% mortgage - despite the risks

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.

* They pay a 5.33% interest rate fixed for five years, which equates to monthly repayments of £1,500.
* The couple are aware of the risks of falling into negative equity but plan to overpay their mortgage in the first five years to build up more equity in their home.
* Conroy says he has researched the area and doesn't think house prices will drop.
* Another couple, Bronya and George, also used a low-deposit mortgage from Lloyds to buy a £258,000 four-bedroom house in Rhuddlan, North Wales.
* They put down only £5,000 as a deposit and pay an interest rate of 5.89% fixed for five years, equating to monthly repayments of £1,400.
* David Hollingworth from L&C Mortgages says lenders are recognising that some people have good affordability but may be struggling to save for a deposit while paying rent and dealing with cost of living pressures.
* Borrowers should use common sense when considering low-deposit mortgages, he advises, thinking carefully about monthly payments and the potential risks.