In a significant development for the UK housing market, sales of 100% mortgages have reached a five-year high, with 574 transactions recorded in the first three quarters of 2025. This surge comes as many prospective buyers struggle to save for deposits amid rising property prices.
According to data from the Financial Conduct Authority, the number of 100% mortgage sales has dramatically increased from just 135 in 2022 and 452 in 2021. The regions experiencing the highest volumes of these sales include the North West and South West of England, indicating a regional disparity in housing affordability.
The weighted average interest rate on new fixed-term mortgages currently stands at 3.46 percent, which is relatively competitive compared to historical rates. However, the average property price across the UK has climbed to £270,000 as of December 2025, complicating the landscape for first-time buyers.
In England, the average property price has risen to £292,000, while Wales, Scotland, and Northern Ireland have also seen notable increases, with prices reaching £215,000, £191,000, and £196,000 respectively. This trend reflects a broader recovery in the housing market following the disruptions caused by the pandemic.
Charlie Evans from Compare the Market noted, “The rise in zero-deposit mortgages is symptomatic of a market in which many buyers are finding it increasingly difficult to save.” This sentiment underscores the challenges faced by potential homeowners in a climate of escalating costs.
Despite the uptick in 100% mortgage sales, there are signs of caution. Mortgage approvals for house purchases fell by 3,100 to 61,000 in November 2025, suggesting that while some buyers are taking advantage of the current offerings, others may be hesitant due to economic uncertainties.
Transaction data indicates that there were approximately 100,000 UK residential transactions in December 2025, a 4.7% increase compared to the previous year. This growth reflects a resilient market, although the future remains uncertain.
Trevor Grant, a mortgage advisor, advised, “If your fixed rate is maturing in 2026, don’t wait until it expires,” highlighting the importance of proactive financial planning for homeowners.
Overall, the mortgage landscape in the UK is evolving, with borrowers potentially saving significant amounts over the term of their loans. As Rachel McGovern remarked, “It is a difficult one to call,” indicating the complexities that lie ahead for both buyers and lenders.