Photo by BEN ELLIOTT on Unsplash
100% mortgages return to UK high streets, half of workers skip pensions & Andy Burnham becomes PM. What today's top finance stories mean for you.
Photo by BEN ELLIOTT on Unsplash
From no-deposit mortgages making a high-street comeback to nearly half of UK workers admitting they have nothing saved for retirement, Friday's finance news is a snapshot of an economy in flux. Here's what yesterday's biggest stories mean for your money — and what you can do about it.
Metro Bank has become the latest mainstream lender to launch a 100% loan-to-value mortgage, meaning eligible first-time buyers can borrow the full purchase price of a property without putting down a single penny as a deposit. It joins a growing number of banks and building societies quietly relaxing affordability rules and rolling out low- or no-deposit products — a trend that marks a dramatic shift from the post-2008 era when such deals were effectively banned from the market.
The return of 100% mortgages will feel like a lifeline to many buyers who are stuck renting while watching property prices remain stubbornly out of reach. But it is important to approach these products with clear eyes. Borrowing the full value of a home means you start with zero equity — if house prices dip even slightly, you could quickly find yourself in negative equity, owing more than your home is worth. Monthly repayments on a 100% mortgage will also be considerably higher than on a deal where you have put down a 10% or 20% deposit, because lenders price the additional risk into the interest rate.
Watch out: 100% mortgages typically come with higher interest rates than standard deals, and eligibility criteria can be strict. Lenders may require proof of a strong rental payment history, a high credit score, or a guarantor. Always compare the total cost over the full mortgage term, not just the headline rate.
That said, for renters who are reliably covering rent payments equivalent to — or greater than — a mortgage repayment, these products represent a genuine route onto the property ladder that simply did not exist a few years ago. If you are considering a 100% mortgage, speaking to an independent mortgage adviser is essential before you apply, as the wrong product could cost you tens of thousands of pounds over the life of the loan. See our first-time buyer mortgage guide for a full breakdown of your options, including shared ownership and guarantor mortgages as alternatives worth exploring.
Tip: Even saving a small deposit — say 5% — can unlock significantly cheaper mortgage rates and meaningfully reduce your monthly payments. If a 100% deal is your only viable route right now, use it as a stepping stone, and overpay when you can to build equity quickly.
A stark report published yesterday puts numbers to a problem many of us quietly suspect: almost half of working-age adults in the UK are not saving into a pension at all. The Guardian spoke to four readers who fear they will never be able to afford to stop working. Among them is Sarah, a 35-year-old library worker in Oxford, who has just £5,000 saved despite a PhD and years in the workforce. She describes a familiar pattern — a succession of part-time and short-term roles that made it easy to keep putting off pension contributions, until suddenly a decade had passed.
Sarah's story is far from unusual. Auto-enrolment has helped millions of employees start saving, but it has significant gaps: the self-employed are excluded entirely, those earning below £10,000 a year are not automatically enrolled, and people who move frequently between employers — or take career breaks — can easily fall through the cracks. The result is a generation heading towards retirement age with dangerously thin financial cushions, facing a state pension that currently pays just over £11,500 a year — well below what most people consider a comfortable retirement income.
Important: Every year you delay pension saving is costly. Thanks to compound growth, £100 saved at 30 is worth significantly more at 65 than £100 saved at 45. If you have old pension pots from previous jobs, they may be sitting idle — consolidating them could boost your returns. See our pension consolidation guide to find out how.
If you recognise yourself in these stories, the most important thing is to start — even modestly. If you are employed, check whether your employer will match higher voluntary contributions above the auto-enrolment minimum, as this is essentially free money. If you are self-employed, a private pension or SIPP (Self-Invested Personal Pension) lets you claim tax relief on contributions, making every pound you put in go further. Our guide to how pensions work explains the basics in plain English, and a regulated financial adviser can help you build a realistic savings plan based on your income and goals.
Remember: Even starting with £50 or £100 a month makes a real difference over time. Use the government's free Pension Tracing Service if you think you have lost track of old workplace pensions — the average lost pot is worth over £9,000.
With Andy Burnham confirmed as the UK's new Prime Minister, the BBC's economics editor Faisal Islam has been examining whether the devolved, investment-led model Burnham championed in Greater Manchester — dubbed 'Manchesterism' — can translate into a workable economic template for the whole country. The approach combines regional investment, public-private partnerships and a focus on connectivity and housing supply. Burnham's team will be hoping it can address sluggish productivity and deep regional inequality — two of the defining economic challenges of the past decade.
For ordinary consumers, the immediate questions are practical ones. The BBC has identified five key policy headaches the new PM must tackle: defence spending, housing, the cost of public services, economic growth, and the ongoing pressures from global trade tensions. Housing is the one most likely to affect your personal finances in the near term. If Burnham pursues an ambitious housebuilding programme — as many expect, given his track record — it could gradually ease pressure on house prices and rents in the medium term, though economists caution that meaningful supply-side improvements take years to feed through to the market.
On broader economic policy, markets and mortgage lenders will be watching closely for signals on public borrowing, inflation targets and the Bank of England's independence. Any shift in fiscal strategy could affect interest rates — and therefore mortgage and savings rates — over the coming months. For now, the most sensible approach is to ensure your own finances are as resilient as possible: adequate insurance, an emergency fund, and a mortgage rate that won't leave you exposed if conditions shift. If your fixed-rate deal is ending in the next six to twelve months, it is worth speaking to an adviser sooner rather than later.
A Nesto adviser can help you navigate any of these areas — whether you are buying your first home, trying to get your pension back on track, or simply want to make sure your finances are set up for whatever the new government has in store.
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