Sales of 100% loan-to-value (LTV) mortgages reached a five-year high in 2025, with demand concentrated in regional markets, according to data obtained by Compare the Market.
In the first three quarters of 2025, 574 no-deposit mortgages were sold, compared with 452 across the full year in 2021 and 135 in 2022.
Volumes have since increased steadily, with 248 recorded in 2023 and 423 in 2024.
The highest volumes of 100% mortgage sales in 2025 were recorded in the North West and South West, followed by the East Midlands and Yorkshire and the Humber.
Analysis by Compare the Market and mortgage broker L&C indicated that borrowers opting for a 95% mortgage rather than a 100% loan could save close to £30,000 in interest over the full term.
Based on an average UK house price of £270,000 over a 30-year term, a 100% mortgage at a rate of 5.55% would result in monthly repayments of £1,542 and total interest of £284,944.
By comparison, a 95% mortgage at 5.28% would result in monthly repayments of £1,421 and total interest of £255,122.
This equates to a potential saving of £29,822 in interest for borrowers able to put down a 5% deposit.
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.”
Evans added: “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, said: “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.”