In a significant development for the UK housing market, sales of 100% mortgages have surged to a five-year high, with 574 transactions recorded in the first three quarters of 2025. This marks a notable increase from 452 sales in 2021 and a dramatic drop to just 135 in 2022.
The rise in zero-deposit mortgages is symptomatic of a market in which many buyers are finding it increasingly difficult to save, according to industry expert Charlie Evans. The trend is particularly pronounced in regions like the North West and South West, which saw the highest volumes of sales.
As of December 2025, the average property price across the UK stands at £270,000, with England recording an annual growth of 1.7%, bringing the average price to £292,000. Wales has seen a 5.0% increase to £215,000, while Scotland’s prices rose by 4.9% to £191,000. In Northern Ireland, prices were up 7.5%, reaching an average of £196,000.
Despite the positive sales figures, mortgage approvals for house purchases fell by 3,100 to 61,000 in November 2025, indicating potential challenges ahead for buyers. The weighted average interest rate on a new fixed-term mortgage currently stands at 3.46 percent, which may influence future borrowing decisions.
Trevor Grant advises borrowers with fixed rates maturing in 2026 not to wait until their terms expire, highlighting the urgency of capitalizing on current rates. Meanwhile, Rachel McGovern notes the uncertainty surrounding the market, stating, “It is a difficult one to call.”
Borrowers who take advantage of the current window of opportunity could save thousands of euros over the typical four or five-year term of a fixed-rate mortgage. As the market evolves, the implications for both buyers and lenders remain to be seen.
Details remain unconfirmed regarding the long-term sustainability of this trend, but the current data paints a complex picture of the UK mortgage landscape.
