In a significant development for the UK housing market, sales of 100% mortgages have soared to a five-year high, with 574 transactions recorded in the first three quarters of 2025. This surge reflects the ongoing challenges many buyers face in saving for deposits, as highlighted by industry experts.
According to the Financial Conduct Authority, the rise in zero-deposit mortgages is symptomatic of a market where potential homeowners are increasingly struggling to accumulate the necessary funds. In stark contrast, sales of 100% mortgages were just 452 in 2021 and plummeted to 135 in 2022, illustrating a dramatic shift in buyer behavior.
The regions with the highest volumes of sales in 2025 were the North West and South West, indicating a geographic trend in the demand for these types of mortgages. As the average property price across the UK stands at £270,000, many buyers are turning to these options to secure their first homes.
The weighted average interest rate on a new fixed-term mortgage currently sits at 3.46 percent, which, while relatively low, still poses a challenge for many. In England, the average property price has risen to £292,000, with Wales and Scotland also seeing notable increases, reflecting a broader trend of rising property values.
In Northern Ireland, prices have surged by 7.5% over the past year, bringing the average to £196,000. This upward trajectory in property prices has led to an estimated 100,000 residential transactions in December 2025, a 4.7% increase from the previous year.
However, not all indicators are positive. Mortgage approvals for house purchases fell by 3,100 to 61,000 in November 2025, suggesting a potential cooling in buyer enthusiasm amid rising costs. Trevor Grant, a mortgage expert, advises, “If your fixed rate is maturing in 2026, don’t wait until it expires,” highlighting the urgency for borrowers to act.
Rachel McGovern expressed caution, stating, “It is a difficult one to call,” as the market continues to evolve. Borrowers who seize the current opportunities could save thousands of euros over the typical four or five-year term of a fixed-rate mortgage, according to industry insights.
As the landscape of mortgages in the UK shifts, the implications for first-time buyers and the overall housing market remain to be seen. The ongoing rise in no-deposit mortgages signals a critical moment for many looking to enter the property market.
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