Published 2026-07-10 · Visa Mortgage Guide

Zero-deposit mortgages for visa holders: the Perenna 95% + builder-gift route

Quick answer: Yes — as of 2026 it is genuinely possible for a visa holder to buy a new-build house in the UK with no deposit of their own. Perenna lends up to 95% of the property value to foreign nationals (no ILR needed), and its criteria allow a builder's incentive of up to 5% to be used as the entire deposit. Put the two together and a qualifying buyer covers 100% of the purchase price — subject to affordability and the conditions below.

How the two pieces fit together

Most zero-deposit headlines fall apart when you read the criteria. This one is simply two ordinary rules used at the same time:

1. Perenna's 95% LTV range — available on new-build houses (new-build flats are capped at 80%), for loans up to £750,000.
2. Builder gifted deposits — Perenna allows builder incentives up to 5% of the purchase price or valuation, whichever is lower, and its criteria state this "may be used as part or all of the deposit, including where no borrower-funded deposit is provided".

95% from the lender + 5% from the builder = the full purchase price. The buyer still pays legal fees, moving costs and any stamp duty — but not a deposit.

Who qualifies (the visa criteria)

Perenna's foreign-national rules, from its published lending criteria:

• Visa type: the main applicant must hold a Skilled Worker–class visa (Perenna's criteria use the older "Tier 1 or 2" wording, which covers today's Skilled Worker and Global Talent routes).
• Income: the main applicant alone must earn at least £50,000 a year — a partner's income can't be combined to reach this threshold, though joint applications are fine once the main applicant clears it.
• Time in the UK: at least 18 months' UK residency.
• Time left on the visa: at least 12 months remaining at application.
• EU citizens with pre-settled or settled status qualify after the same 18 months, with no LTV restriction.

Notably, Perenna applies no reduced LTV cap for foreign nationals — the same 95% ceiling applies as for UK citizens, which is rare. Most high-street lenders cut their maximum LTV sharply for applicants without indefinite leave to remain.

A worked example

A Skilled Worker visa holder earning £52,000 finds a new-build house priced at £300,000 where the developer offers a 5% deposit contribution:

• Builder's gifted deposit: £15,000 (5%)
• Perenna mortgage: £285,000 (95% LTV)
• Buyer's own deposit: £0

The affordability still has to work — but because this route uses Perenna's full-term "Fixed for Life" product, there is no stress-rate uplift on top of the actual pay rate, which is exactly how it can stretch further than lenders who must test you at a higher hypothetical rate. (Perenna's shorter fixed-rate products, which revert to its SVR, don't carry the same benefit.)

The catches — read these before getting excited

• Houses only at 95%. New-build flats are capped at 80% LTV, so this route doesn't work for most city-centre apartment schemes.
• The 5% is measured against the lower of price or valuation. If the surveyor down-values the property, the numbers shrink and you may need to negotiate or top up.
• Long-term fixed rates cost more than short fixes. Perenna's model is a rate fixed for decades, not two years. You're buying certainty; compare the total cost honestly against saving a 5–10% deposit and using a mainstream lender.
• Early repayment charges apply in the early years — check the product terms if you might redeem or move quickly.
• The builder incentive must be declared on the UK Finance Disclosure of Incentives Form — it's a formal part of the transaction, not a side arrangement.
• £50k main-applicant income floor rules out many otherwise-strong joint applications where income is split evenly.
• Product availability changes — 95% products can be withdrawn or repriced at short notice.

How this compares with the alternatives

For a visa holder without ILR, the usual paths are a 15–25% deposit with a mainstream lender, or 5–10% with one of the more visa-friendly banks once you have some UK history. Against those, the Perenna route trades a higher long-term rate for a much earlier purchase date. If house prices or rents in your area are rising faster than you can save, buying years earlier can outweigh the rate premium — if they're not, saving the deposit may still win. That's an affordability sum, not a slogan, so run your own numbers.

FAQ

Does this work on any new build? Only where the builder actually offers a 5% deposit contribution and the property is a house (not a flat). Deposit contributions are commonest when developers are keen to move stock — ask the sales office directly.

Can two visa holders apply jointly? Yes — but the £50,000 minimum income applies to the main applicant on their own.

What if I have less than 18 months in the UK? Perenna's route won't work yet. Other lenders will consider shorter UK history with a bigger deposit — see our lender criteria tables for who accepts what.

Is this a government scheme? No. It's ordinary lender criteria plus an ordinary builder incentive — no scheme paperwork, no shared equity, no second charge.

Criteria verified against Perenna's published intermediary lending criteria, July 2026. Criteria change frequently — always confirm the current position with the lender or a whole-of-market broker before committing to a purchase. This article is information, not financial advice.

Buying a new build more generally — incentives, timelines, snagging, valuations — is covered in depth on our sister site, New Build Mortgage Guide. And to see what a range of lenders might lend you on your income, try the free affordability check.