Compare 85% LTV mortgages
Why are you looking for a mortgage?
The Cumberland 2 year discount remortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 5.3%. Repayments: 24 months of £1,080.94 at 2.61% (discount), then 276 months of £1,464.50 at 5.74% (variable). Total amount payable £431,143.56 which includes interest of £192,144.56. Arrangement Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Remortgage only.
Available in branch only.
Additional criteria may apply.
Newbury Building Society 5 year discount remortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 3.8%. Repayments: 60 months of £1,084.57 at 2.64% (discount), then 240 months of £1,272.90 at 4.45% (variable). Total amount payable £371,420.20 which includes interest of £132,570.20. Application Fee (£850) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 21 years
Available Direct.
Max age at term end: 70 years
Remortgage only.
Available in branch only.
Additional criteria may apply.
Newbury Building Society 5 year discount shared equity remortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 3.8%. Repayments: 60 months of £1,084.57 at 2.64% (discount), then 240 months of £1,272.90 at 4.45% (variable). Total amount payable £371,420.20 which includes interest of £132,570.20. Application Fee (£850) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 21 years
Available Direct.
Max age at term end: 70 years
Remortgage only.
Available in branch only. This mortgage is available for new builds only on the Help to Buy Equity loan scheme.
Additional criteria may apply.
Loughborough 2 year discount
Repayment mortgage of £238,000 over 25 years, representative APRC 5.4%. Repayments: 24 months of £1,091.84 at 2.7% (discount), then 276 months of £1,485.49 at 5.89% (variable). Total amount payable £436,898.40 which includes interest of £198,199.40. Completion Fee (£699) paid on completion. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
Loughborough 2 year discount
Repayment mortgage of £238,000 over 25 years, representative APRC 5.4%. Repayments: 24 months of £1,091.84 at 2.7% (discount), then 276 months of £1,485.49 at 5.89% (variable). Total amount payable £436,199.40 which includes interest of £198,199.40. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
The Cumberland 2 year discount remortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 5.3%. Repayments: 24 months of £1,101.58 at 2.78% (discount), then 276 months of £1,466.46 at 5.74% (variable). Total amount payable £432,179.88 which includes interest of £193,180.88. Arrangement Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Remortgage only.
Available in branch only.
Additional criteria may apply.
Furness Building Society 2 year discount cashback mortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 5.6%. Repayments: 24 months of £1,102.80 at 2.79% (discount), then 276 months of £1,513.36 at 6.09% (variable). Total amount payable £445,153.56 which includes interest of £206,154.56. Product Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
Vernon 5 year fixed
Repayment mortgage of £238,000 over 25 years, representative APRC 4.9%. Repayments: 53 months of £1,115.05 at 2.89% (fixed), then 247 months of £1,446.16 at 5.85% (variable). Total amount payable £416,498.17 which includes interest of £178,299.17. Product Fee (£199) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Max age at term end: 85 years
Available via brokers only.
Additional criteria may apply.
Tipton & Coseley 3 year discount remortgage
Repayment mortgage of £238,000 over 25 years, representative APRC 5.4%. Repayments: 37 months of £1,115.05 at 2.89% (discount), then 263 months of £1,509.83 at 6.19% (variable). Total amount payable £439,341.14 which includes interest of £200,342.14. Arrangement Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at application: 75 years
Remortgage only.
Additional criteria may apply.
Scottish Building Society 2 year discount
Repayment mortgage of £238,000 over 25 years, representative APRC 5.7%. Repayments: 24 months of £1,115.05 at 2.89% (discount), then 276 months of £1,514.53 at 6.09% (variable). Total amount payable £445,766.48 which includes interest of £206,771.48. Arrangement Fee (£995) paid upfront. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are older than 18 years
Available Direct.
Max age at term end: 85 years
Minimum income £40,000
Available in branch only.
Additional criteria may apply.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Frequently asked questions
An 85% LTV mortgage, which is sometimes called an 85 LTV mortgage, is on the higher end of the loan-to-value scale but they are more common than 95% or 100% LTV mortgages. We look at how they work and what you need to be aware of before applying.
What is an 85 LTV mortgage
An 85% loan-to-value mortgage means your total borrowing is 85% of the property value. The remaining 15% is the deposit you put forward.
An 85% LTV mortgage is considered one of the higher loan-to-value ratio mortgages, so you will pay a higher interest rate on your borrowing than someone who puts down a 25% or more as a deposit. This because the more you put down as a deposit the less risky a lender will consider you to be.
What are the best 85% LTV mortgages?
You will need to compare different mortgage deals to find the best deal for you but be aware that an 85% LTV mortgage will end up being more expensive over the lifetime of an entire mortgage term - normally 25 years - as not only is the interest rate higher, but the total amount to be paid back is also higher.
An 85% mortgage will usually be more expensive than an 80% mortgage of the same amount, but cheaper than a 90% mortgage
Can I afford an 85% loan-to-value mortgage?
What you can afford is largely determined by what you can put forward as a deposit and what you can afford to pay back each month, but not exclusively.
When taking out a mortgage you should always leave yourself some wiggle room – typically 5% to 10% is advised – to account for extra and unexpected costs.
For instance, if your property is over the Stamp Duty threshold you will have to pay stamp duty. This is a tax that is charged as a percentage of the property’s purchase price. You will also have solicitor and mortgage arrangement fees to consider, as well any potential repairs you may have to undertake.
When buying a house you have to factor in unexpected costs, it’s also a good idea to have 3 to 6 months worth of household bills and expenses (including your mortgage payments) in an accessible savings account.
What is 85% LTV?
An 85% LTV mortgage is a loan worth 85% of a property’s price, so you, the borrower, will be putting in 15% deposit of your own money. This is also known as the equity share.
How does an 85% mortgage work?
Say you want to buy a property worth £150,000, then to borrow 85% LTV you would need to be able to put down a deposit of £22,500, so you would borrow the remaining 85%, or £127,500.
Is an 85% LTV mortgage better than a 95% LTV mortgage?
The more deposit you can put forward the better, as the lower your LTV, the lower the interest rates charged, and also lenders tend to offer more deals on 85% LTV mortgages than they do on 95% mortgages.
Can you get 85 remortgage deals?
If you already own a home and are looking to switch your mortgage or remortgage then you would need a minimum of 15% equity in your home, you would not be able to remortgage if you only had a 5% equity share in your home.
Can I get an 85 LTV buy to let mortgage?
No, you can't get an 85% LTV buy to let mortgage with a 15% deposit. Most buy to let lenders require a minimum deposit of at least 25%. Although some buy to let mortgage lenders do have specialised mortgage deals for portfolio landlords who may have several properties,
Lending criteria for 85% mortgages
Most lenders have a limit on how much they will lend, based on the LTV requested. Mortgage lenders will have an upper ceiling on the amount they will lend, for example mainstream lenders may offer up to £750,000 if a borrower is putting in a 15% deposit but would increase the amount to over £1m if the deposit was 25% or over.
Of course lending criteria is also based on salary and the credit score of the mortgage applicant, each lender will have their own criteria. Some more specialised lenders, such as sub prime lenders may have more available deals to borrowers with a small deposit.
Other criteria might include:
Whether the property is a new build
Whether you have another mortgage
Looking for a different LTV?
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