Sales of 100% LTV mortgages hit five-year high

Sales of 100% mortgages hit a five-year high last year, with the North West and the South West the most popular regions for zero-deposit home loans.

In the first three quarters of 2025 (January to September) sales of no-deposit mortgages reached a five-year high of 574, according to the most recent available data held by the FCA, obtained via a Freedom of Information request submitted by Compare the Market.

In 2021, sales of 100% mortgages reached 452 before dipping to 135 in 2022 – the year of former chancellor Kwasi Kwarteng’s mini-budget. No-deposit mortgages have been on the rise since with 248 recorded in 2023, 423 in 2024 and 574 in just nine months of 2025.

Regions with the highest volumes of sales in the first three quarters of 2025 were the North West and South West, followed by East Midlands and Yorkshire & Humber.

95% LTV buyers could save nearly £30,000 in interest 

Compare the Market also analysed the amount buyers could pay in the long run with a 5% deposit, versus with no deposit.

For example, the rate on Skipton Building Society’s 100% five-year fixed ‘Track Record Mortgage’ was 5.55% as of 24th March 2026. By contrast, the rate on Skipton’s 95% five-year fix with a £999 fee was 5.28%.

With a no-deposit mortgage on a 5.55% rate, based on the average UK house price of £270,000 and a 30-year term, repayments would work out at £1,542 a month. Over the full term, a buyer would pay £284,944 in interest.

With a 5% deposit and a 5.28% rate, based on the average UK house price of £270,000 and a 30-year term, repayments would work out at £1,421 a month. Over the full term, a buyer would pay £255,122 in interest.

This means that putting down a £13,500 deposit (5% of the average UK house price), versus taking out a 100% mortgage, could save buyers £29,822 in interest in the long run.

Charlie Evans, money expert at Compare the Market, said: “The rise in zero-deposit mortgages is symptomatic of a market in which many buyers are finding it increasingly difficult to save, as rents, household bills and everyday costs continue to eat into disposable income.

“First-time buyers are turning to 100% mortgage loans as a way onto the property ladder – particularly in regions like the North West and South West where demand was strongest last year. Greater product availability and lenders cautiously re-entering this space may also be playing a role.

“While 100% mortgages can remove the upfront hurdle of a deposit, they often come with higher rates – and even a 5% deposit could help to save borrowers nearly £30,000 over the long term. As ever, it comes down to individual circumstances, so shopping around for a competitive deal is key.”

David Hollingworth, associate director at L&C, commented: “Lenders have increasingly sought to address the challenges that first time buyers face. Saving for a deposit is certainly not easy, especially alongside higher rents and cost of living. 

“The increased availability of mortgages for those with a small or no deposit can help to boost the chance of buying more quickly. 

“If it is possible to get a deposit together, it will help to broaden the mortgage choices and improve the interest rates on offer. Typically, the bigger the deposit, the better the rates will be, which will make monthly payments more affordable.”