Homeowner Loans with No Down Payment: Equity Borrowing 2026
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Borrowing against the equity in your property can allow you to release funds quickly, secured against your property.
When taking a homeowner loan, many borrowers use the phrase ‘no money down’ when questioning whether they could qualify.
In this guide, we break down how that works and whether you could qualify.
Mortgage Loans With No Money Down
No money down, or no deposit, generally refers to a mortgage when purchasing a property.
Releasing funds using a homeowner loan does not require a deposit from you, instead, the equity in your property is used as security for the loan.
The lender is taking their security against the property that you already own, rather than giving funds to purchase a property, which is what makes this possible.
In this scenario, the key metric is the loan to value (LTV) of the application.
This is how much you will owe in total (including both your mortgage and your homeowner loan) as a percentage of the value of your property.
Can You Get a Homeowner Loan With 100% LTV?
Yes, you can get a homeowner loan up to 100% LTV.
While this is possible, that doesn’t mean that everybody can qualify for this type of borrowing. Due to the high loan to value, the lending criteria to qualify are higher.
This means that your affordability profile and credit history must be strong in order to qualify for 100% finance.
If you’re unsure whether you’ll qualify, get in touch for a free consultation with our team.
Your mortgage lender must also consent to a second charge being placed behind their first charge.
It’s also important to note that lending at a very high LTV will also increase risk to the lender, and therefore the interest rate charged.
If you’re very price sensitive, 100% may be seen as too expensive and it may be worth considering funding at lower gearing such as 95% LTV or even 90% LTV.
Buying a House With No Deposit vs Borrowing Against Equity
While similar, in practice, these are two completely different scenarios and it’s important to understand the distinction.
Buying with no deposit:
- Requires specialist schemes or guarantor support
- Come with limited availability and stricter criteria
- Are higher risk and offer fewer lender options
When borrowing against equity using a homeowner loan:
- You already own the property
- Can use your existing equity as security
- Typically more accessible and slightly more flexible
This distinction matters as many borrowers confuse the two. In reality, secured loans rely on what you already own, not upfront cash.
Equity is effectively your “deposit” when borrowing as a homeowner and even if you’re borrowing 100% LTV, your existing equity may be sufficient to act as a deposit.
