In a significant development, sales of 100% mortgages in the UK have reached a five-year high of 574 in the first three quarters of 2025. This surge highlights a growing trend as buyers increasingly turn to zero-deposit options amidst rising property prices and economic pressures.
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 North West and South West regions have recorded the highest volumes of these sales, indicating a regional disparity in the housing market.
The weighted average interest rate on new fixed-term mortgages currently stands at 3.46 percent, a figure that many potential buyers are keen to lock in before rates potentially rise further. The average property price across the UK is projected to reach £270,000 by December 2025, with England seeing an annual growth of 1.7%, bringing the average price to £292,000.
Wales has also experienced a notable increase, with property prices rising by 5.0% to an average of £215,000, while Scotland and Northern Ireland have posted annual growths of 4.9% and 7.5%, respectively.
Transaction data indicates that there were approximately 100,000 residential transactions in December 2025, a 4.7% increase compared to the previous year. However, mortgage approvals for house purchases fell by 3,100 to 61,000 in November 2025, suggesting a potential cooling in the market.
Charlie Evans of Compare the Market commented, “The rise in zero-deposit mortgages is symptomatic of a market in which many buyers are finding it increasingly difficult to save.” This sentiment reflects the challenges many face in securing home ownership.
Trevor Grant advised, “If your fixed rate is maturing in 2026, don’t wait until it expires,” urging borrowers to act swiftly in the current climate. Rachel McGovern added, “It is a difficult one to call,” highlighting the uncertainty surrounding future market trends.
Borrowers who take advantage of the current mortgage landscape could potentially save thousands of euros over the typical four or five-year term of a fixed-rate mortgage, making it a critical time for those looking to enter the housing market.
As the UK housing market continues to evolve, the implications of these trends will be closely monitored by industry experts and potential homebuyers alike. Details remain unconfirmed regarding future policy changes that could impact mortgage availability.