[dfawcus]

That sounds similar to how Mortgages used to work in the UK in the 60s.

One would get a mortgage from a Building Society for around 75% of the property value, and had to get a Bank Loan for the remainder which they couldn't cover from savings.

[petre]

What has changed? How do mortgages work today in the UK?

[benjaminwootton]

We had 100% mortgages (no deposit) in the run up to the crises.

We even had 100%+ mortgages for a time which included a loan on top of your mortgage to modernise and furnish your property.

Nowadays, 5% deposit mortgages are available but 10% is more typical. We also have a popular government “help to buy” scheme which some think is reckless as it allows people to get into a more expensive new build home (which typically fall in value after first occupier) with a 5% deposit.

A loan for your deposit would not be acceptable as the mortgage company want to see you have skin in the game.

UK housing market is a complete mess and in my mind hugely overvalued. The can has been kicked down the road for over a decade now. If I didn’t have a family who needed secure housing situation I would sell to rent in a heartbeat.