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.

That is according to the most recent available data held by the Financial Conduct Authority – obtained via a Freedom of Information (FOI) request submitted by Compare the Market.

In 2021, sales of 100% mortgages reached 452 before dipping to 135 in 2022 – the year of the 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.

Compare the Market money expert Charlie Evans 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.

“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.”

L&C associate director David Hollingworth 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.”