London renters making it onto the ladder without a deposit
Developers helping London renters onto the property ladder without a deposit, when the Government won’t
The latest insight from London’s largest lettings and sales estate agent brand, Foxtons, has revealed that despite the Government providing no new support in the recent Budget for first time buyers, a growing collaboration between developers and lenders is helping London renters make the jump from tenant to homeowner, with new-build houses and flats now eligible for 0% deposit “Track Record” mortgages and developer deposit contributions of up to 5%.
As London’s largest estate agent, Foxtons has an unrivalled view of the capital’s housing market and how innovative finance options are reshaping access to home ownership.
The current cost of renting
With the average monthly cost of renting in London now sitting at £2,736*, it remains a significant outgoing and can make it hard for renters to accumulate the deposit required to make the jump to homeownership. However, the capital’s developers are tackling this issue head on, introducing ‘Track Record’ mortgages for renters, allowing them to purchase new-build homes without having to save a mortgage deposit.
What is a ‘Track Record’ mortgage?
A 0% deposit “Track Record” mortgages offer up to 100% loan-to-value (LTV) for eligible buyers who haven’t owned a property within the last three years.
Applicants aged 21 and over must show a proven rent payment history covering at least 12 of the past 18 months. In some cases, lenders will consider monthly mortgage payments of up to 120% of current rent, with terms available for up to 40 years and borrowing up to five times income.
Developers across the city are increasingly embracing these new no-deposit mortgage products, working with lenders to make homebuying more accessible for those with a strong track record of paying rent on time.
Foxtons Sales Director – New Homes, Joel Ellis-Duffy, commented:
“The partnership between developers and lenders is opening the door for a new generation of London homeowners. For many renters, saving for a deposit has been the single biggest obstacle to buying, despite a consistent history of paying rent that often matches or exceeds potential mortgage repayments.
No-deposit mortgages acknowledge that reliability, allowing renters to redirect what they’re already spending into a home of their own. For developers, who are also offering support with deposits of up to 5%, it’s a fantastic way to expand their pool of potential buyers and help more Londoners realise their ambition of home ownership. With these products now available across both new-build houses and flats, there’s a real opportunity for renters to take that step onto the ladder sooner than they might have thought possible.”
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