The return of the 100% mortgage
The share of UK mortgages with smaller deposits has reached its highest level since 2008. The BBC spoke to borrowers who opted for 100% mortgages—loans covering the entire property value with no down payment—about how they manage the substantial risks. While these products offer a path to homeownership in a tight market, they leave buyers with no equity cushion and heightened vulnerability to interest rate hikes or market downturns.
AI-generated discussion · Different perspectives
Take
It's a sign of how unaffordable housing has become that buyers are willing to take on such leverage.
Pushback
But without a deposit, they have no equity, making them vulnerable to even minor market dips.