Barclays offers zero deposit mortgage for Right to Buy applicants

08 April 2025

As part of a broader effort to make home ownership more accessible, Barclays will no longer require a deposit from borrowers purchasing a home under the Right to Buy (RTB) scheme.

Barclays will use the RTB discount in place of a direct deposit, whilst borrowers will also receive the benefit of the reduced rates available for lower Loan-to-Value (LTV) mortgages. For example, someone receiving a 40 per cent discount on their home under the RTB scheme will be considered to have a 40 per cent deposit, and therefore access to 60 per cent LTV rates.

Lending is capped at 90 per cent of the full market value, ensuring responsible borrowing, and excludes high-value properties, where a deposit is still required.

Lee Chiswell, Head of Mortgages at Barclays, said:

“The Right to Buy scheme has long been a crucial route to home ownership for council and housing association tenants, yet we know that saving for a deposit remains a key obstacle. By lending for the full value of the property, we’re removing the need for buyers to have any deposit at all, helping many completely sidestep their largest barrier to home ownership.”

The move by Barclays follows its introduction of several new propositions and updates to its lending criteria as it seeks to make home ownership more affordable for first-time buyers and existing homeowners.

These include Mortgage Boost, which allows family or friends to ‘boost’ the amount that can be borrowed towards a home without having to lend or gift money directly.

Barclays also this year increased its maximum loan amounts for high LTV purchases across all of its mortgages, to £640,000 for houses and £310,000 for flats, enabling more buyers to access homes in higher price brackets with just a 10 per cent deposit.

For more information on mortgages and, go to the Barclays website at www.barclays.co.uk/mortgages/.