Zero-Deposit Mortgage Sales Surge to Five-Year High
Data from the Financial Conduct Authority shows a rise in zero-deposit mortgage activity between January and September 2025. The number of 100% mortgage sales reached a five-year high in that period. The increase was strongest in the North West and South West regions.
Regional breakdown
Sales were recorded across all English regions, Scotland and Wales. Northern Ireland reported no 100% mortgage sales in the period.
| Region | Total |
|---|---|
| Central & Greater London | 26 |
| East Midlands | 67 |
| Eastern | 54 |
| North East | 34 |
| North West | 76 |
| Northern Ireland | 0 |
| Scotland | 64 |
| South East | 38 |
| South West | 76 |
| Wales | 26 |
| West Midlands | 45 |
| Yorkshire and The Humber | 67 |
| Unknown regions | 1 |
Source: Financial Conduct Authority.
Rates, fees and borrower trade-offs
Brokers say borrowers must weigh higher rates on zero-deposit products. Even a small deposit can often unlock lower borrowing costs. The trade-off remains central to lending decisions.
Market comparison group Compare the Market highlighted rate differentials on 24 March 2026. It cited Skipton Building Society products priced for five-year fixed terms.
| Product | Loan-to-value | Rate | Fee |
|---|---|---|---|
| Track Record Mortgage (Skipton) | 100% | 5.55% | None quoted |
| Five-year fixed (Skipton) | 95% | 5.28% | £999 |
Illustrative example
Compare the Market provided a worked example on a £270,000 purchase. The comparison shows the long-term cost of a zero-deposit option versus a 5% deposit.
| Scenario | Deposit | Rate | Monthly payment | Total interest (30 years) |
|---|---|---|---|---|
| No deposit | £0 | 5.55% | £1,542 | £284,944 |
| 5% deposit | £13,500 | 5.28% | £1,421 | £255,122 |
The 5% deposit case reduced total interest by £29,822 in this example. It also lowered monthly repayments and created immediate home equity.
Access to homeownership
Compare the Market noted that some first-time buyers cannot save even a small deposit. For these households, zero-deposit mortgages provide an alternative path into ownership. Borrowers using such deals can build equity through regular repayments.
Filmogaz.com will continue to monitor developments in zero-deposit mortgage sales. The regional data and lender pricing remain key indicators of market access for new buyers.
