Breaking into the UK property market can seem impossible without a big deposit, but creative financing strategies make it achievable. In this guide we explore how to buy a property with no money by leveraging family support, government schemes, partnerships and specialist loans. You’ll learn about guarantor mortgages, shared ownership, joint ventures, and other tactics that let you secure a home without your own upfront cash.
1. Get a guarantor mortgage
As of June 2025, some lenders are now offering 100% mortgages for first time buyers, under the precondition that you earn over £24,000 a year. Some also require a guarantor – with a guarantor mortgage, a family member or close friend provides security (often by charging their own home or savings) to cover any shortfall. This means you can borrow the full purchase price of a property without a deposit of your own. In practice the guarantor signs an agreement to pay your mortgage if you can’t. Note that guarantor loans tend to carry higher interest rates and bigger monthly payments. Still, by using a guarantor’s collateral you may effectively buy a house with no money down – just be aware it puts their assets at risk if you default.
2. Try shared ownership schemes
Government-backed schemes can help those with limited funds. Shared Ownership is one such program where you buy only a share of a home (say 25%-75%) and pay rent on the rest. Because you own part of the property, you only need a deposit on your share. For example, buying 50% of a £300,000 home only requires a deposit on the £150,000 share, not the full price. In practice, this means your upfront deposit can be much smaller (often 5-10% of the share price). Importantly, Shared Ownership is open to first-time buyers and even people on benefits. Lenders may include Universal Credit or other benefit income in the affordability calculation, so you can buy a share in a home even on Universal Credit. By using Shared Ownership, you effectively enter property ownership with a low cash deposit.
3. Set up a rent-to-own or lease-option deal
Another creative route is to negotiate a rent-to-buy or lease-option agreement with the seller. In this arrangement you rent the property for a fixed term (say 3-5 years) with an option to buy at a pre-agreed price. During the rental period you build up equity while paying rent. For instance, you might agree to rent with an option that at the end of the term you can purchase at today’s price. This way, you secure the future purchase without paying a large deposit now. Property experts note that combining a rental period with an option to buy lets you effectively handle a purchase “with no money down”. The seller benefits by having their home occupied and guaranteed to sell later at a set price, and you benefit by taking time to raise funds or improve finances before the actual purchase. This strategy requires careful legal setup, but it can be a way to buy without immediate cash.
4. Partner in a joint venture or development deal
If you’re willing to get into property development, a 100% joint-venture (JV) finance deal can let you build or renovate using someone else’s capital. In a typical JV development finance arrangement, a lender or investor funds 100% of the land purchase and construction costs. You then contribute the development management, labour or skill. When the project sells, profits are usually split (often 50/50) between you and the finance.
Essentially, you are creating a home (or flats) without putting money in – the lender does. While these deals require full planning permission and business planning, they let an aspiring developer get into property with no deposit. In effect, you are “buying” the new property by executing the build for the financier and sharing in the sale proceeds.
5. Remortgage or release equity from an existing property
If you already own property, it can fund your next purchase. One way is to remortgage or take a secured loan on your current home to cash out equity. In other words, you borrow against the value of a property you own and use that cash as a deposit or complete purchase on another property. This lets you access potentially tens of thousands without saving new money. Effectively, you are turning existing equity into startup capital. This is often called going from “asset-rich, cash-poor” to using your assets to get more property. Of course, you then have debt secured on your original home, so it carries risk. But used carefully, equity release or a cash-out remortgage can let you buy or develop another property with minimal additional cash.
6. Buy below market value and refurbish
A savvy way to get 100% financing is to buy a property at a significant discount and borrow against the higher true value. For example, if you find a home for 70% of its market value (say via auction or as a distressed sale), lenders may lend based on the full market value. That means the loan covers the full cheap purchase price, effectively requiring no deposit. In practice, you buy at a bargain and the lender treats the loan-to-value ratio favourably.
A similar idea applies to leasehold flats with very short leases. Such properties sell at deep discounts because the lease is nearly expired. You can buy one cheaply and simultaneously extend the lease, instantly raising its value. Even if 100% funded by debt, you end up with considerable equity because the lender uses the new higher value. In short, buying undervalue properties (or short leases) and refurbishing or extending the lease can create value financed entirely by the mortgage or bridging loan, eliminating the need for your own deposit.
7. Go in with a joint mortgage or co-buyer
Teaming up with someone else can also remove your personal cash barrier. With a joint mortgage, you and a partner (or friend, relative, spouse) combine incomes and savings. The required deposit is then split between you. Buying together not only spreads the deposit cost but also lets lenders consider two incomes, allowing a larger loan. Even if each of you has little cash individually, together you might qualify for a standard mortgage. For example, two people each contributing a small amount can meet a 5% deposit requirement between them. Co-buying still means both parties share responsibility for the mortgage, but it’s a practical way for first-time buyers or friends to get on the ladder without saving alone.
8. Explore government help and savings bonuses
Several UK government schemes can reduce your cash needs. For first-time buyers, a Lifetime ISA (LISA)is a savings account where the government adds a 25% bonus on contributions (up to £1,000 per year) towards a home deposit. Over a few years this bonus effectively gives you “free” deposit money. While not a no-money trick per se, it means the government adds to your savings pot.
Council tenants have a special right too. The Right to Buy scheme lets long-term council tenants purchase their home at a discount of up to 70%. Lenders often allow using this discount as a deposit. Other local or regional assistance programs (like First Home Funds in Scotland or others) may also exist. In short, it’s worth checking available government or developer offers. These schemes don’t always eliminate deposit, but they stretch your money, and in combination with a small loan or gift, you can often buy with little cash down.
9. Use construction and development finance
If you have building skills or a plan to develop, specialised finance can let you build from scratch. Construction loans (or stage-payment mortgages) provide short-term funding for self-build and renovation projects. As we’ve explained in a previous guide, these loans “are disbursed in stages” as each milestone is reached on the build. For example, funds release for land purchase, then foundation work, then roofing, etc. This staged lending means you don’t pay upfront for the entire build – the lender covers the cost as you go. In practice, if you own a plot or convert an existing property, you can finance the entire construction without paying cash from your pocket. Once complete, you typically convert the loan into a regular mortgage or sell the property. In the UK, a construction loan is the main way to build a home with no deposit, since you repay from the finished value. Our guide on construction finance shows how these loans “bridge the gap” during building projects so work can continue without interruption. Note that self-build mortgages and development loans usually do require some equity or planning but compared to a normal purchase they minimise your initial cash needs.
Conclusion
Each of these strategies requires planning and legal advice, but they show that buying a property with no (or very little) upfront cash is possible. From guarantor mortgages and joint ventures to government schemes and creative deals, there are at least 9 ways to get into property without saving a traditional deposit. Rise Funding’s expertise in property finance (see our guides on construction loans and using home construction loans in the UK) can help you navigate these options and make your move onto the property ladder, even starting from scratch.
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