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85% LTV mortgages
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What is an 85% LTV mortgage?
An 85% loan-to-value (LTV) mortgage is where you borrow 85% of the property's total value. The remaining 15% is made up by the deposit you put down - so you may also see it referred to as a 15% deposit mortgage.
85% LTV is considered one of the higher loan-to-value ratio mortgages, so you'd usually pay a higher interest rate than someone who offers a 25% deposit, for example. This because the larger the deposit, the less risk is involved for the lender.
How does an 85% mortgage work?
With an 85% mortgage, you borrow 85% of the property value from a mortgage lender and provide the remaining 15% through your deposit. Every mortgage product has slightly different terms, but whether you choose a fixed-rate or variable rate, you essentially borrow and repay 85% of the cost of the property, plus interest.
For example: To buy a property worth £150,000, at 85% LTV you would need to put down a deposit of £22,500, and would borrow the remaining 85%, or £127,500
This table shows how much deposit you'd need for an 80% mortgage for different property values. This might help you decide if a 15% deposit is within your reach.
| Property Value | Loan size at 85% LTV | Deposit requirement |
|---|---|---|
| £150,000 | £127,500 | £22,500 |
| £300,000 | £255,000 | £45,000 |
| £450,000 | £382,500 | £67,500 |
How to get the best 85% LTV mortgage deal
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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Our best 85% LTV mortgage rates
The table below shows some of our best 85% LTV two and five year fixed-rate deals. LTV is the percentage of the value of the property you're borrowing. These initial rates are what you'll pay during the introductory deal period - so two or five years - although longer deals are available.
The Annual Percentage Rate of Change (APRC) costs are included in brackets after the initial rate for each deal. APRC takes fees and the SVR (standard variable rate) you're moved onto after the introductory period into account.
This means APRC can be useful when comparing the overall cost of different deals, but less so for those planning to avoid the SVR by remortgaging onto another deal at the end of their introductory deal.
| 2-year fixed | 5-year fixed |
|---|---|
| NatWest - 5.18% (8% APRC) | HSBC - 4.71% (6.3% APRC) |
| NatWest - 5.23% (7.9% APRC) | NatWest - 4.71% (7% APRC) |
| NatWest - 5.23% (8% APRC) | Nationwide BS - 4.71% (6.9% APRC) |
| Yorkshire Building Society - 5.24% (7.3% APRC) | HSBC - 4.74% (6.3% APRC) |
Representative example 85% LTV Mortgages
85% LTV 2 Year Fixed - NatWest - 5.18% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 8%. Repayments: 28 months of £1,425.29 at 5.18% (fixed), then 272 months of £1,852.74 at 8.24% (variable). Total amount payable £543,853.40. Early repayment charges apply until 31-Mar-2026. Other fees may apply.
85% LTV 2 Year Fixed - NatWest - 5.23% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 7.9%. Repayments: 28 months of £1,429.35 at 5.23% (fixed), then 272 months of £1,849.53 at 8.24% (variable). Total amount payable £543,093.96. Early repayment charges apply until 31-Mar-2026. Other fees may apply.
85% LTV 2 Year Fixed - NatWest - 5.23% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 8%. Repayments: 28 months of £1,432.34 at 5.23% (fixed), then 272 months of £1,853.40 at 8.24% (variable). Total amount payable £544,230.32. Early repayment charges apply until 31-Mar-2026. Other fees may apply.
85% LTV 2 Year Fixed - Yorkshire Building Society - 5.24% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 7.3%. Repayments: 27 months of £1,433.76 at 5.24% (fixed), then 273 months of £1,822.81 at 8.24% (variable). Total amount payable £526,240.29. Early repayment charges apply until 28-Feb-2026. Other fees may apply.
85% LTV 5 Year Fixed - HSBC - 4.71% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 6.3%. Repayments: 63 months of £1,358.57 at 4.71% (fixed), then 237 months of £1,631.61 at 6.99% (variable). Total amount payable £472,281.48. Early repayment charges apply until 28-Feb-2029. Other fees may apply.
85% LTV 5 Year Fixed - NatWest - 4.71% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 7%. Repayments: 64 months of £1,359.90 at 4.71% (fixed), then 236 months of £1,791.55 at 8.24% (variable). Total amount payable £509,839.40. Early repayment charges apply until 31-Mar-2029. Other fees may apply.
85% LTV 5 Year Fixed - Nationwide BS - 4.71% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 6.9%. Repayments: 60 months of £1,355.85 at 4.71% (fixed), then 240 months of £1,759.73 at 7.99% (variable). Total amount payable £503,686.20. Early repayment charges apply until 5 years. Other fees may apply.
85% LTV 5 Year Fixed - HSBC - 4.74% Repayment mortgage of £238,000.00 over 25 years, representitive APRC 6.3%. Repayments: 63 months of £1,359.85 at 4.74% (fixed), then 237 months of £1,629.05 at 6.99% (variable). Total amount payable £471,755.40. Early repayment charges apply until 28-Feb-2029. Other fees may apply.
All rates provided by Mojo Mortgages and are updated every 12 hours. THE ABOVE DEALS MAY NOT BE AVAILABLE AT THE POINT YOU SUBMIT AN APPLICATION.
You might not be eligible for all mortgage deals available, depending on your personal circumstances. Fees and initial rates can sometimes make deals more expensive so remember to check these first.
Lending criteria for 85 LTV mortgages
The deposit amount is a key element of the lending criteria – you'll need a 15% deposit to be eligible for an 85% mortgage. You'll also typically need to prove that it's come from an approved source.
Other criteria can vary between lenders, but is likely to include:
Income – Around four-and-a-half times your annual income is the average loan size offered, but some lenders also have a minimum income requirement
Your outgoings – the lender wants to know you can afford the repayments based on your current spending habits
Credit history - the lender wants to know you are reliable at managing debt and will look at your credit history to determine this
You will have to be within the minimum and maximum age restrictions
A mortgage broker can advise you on the lending criteria of each provider to make sure you only apply for mortgages suited to you.
Can I afford an 85% LTV mortgage?
What you can afford is largely determined by your deposit and what you can afford to pay back each month, but you should always leave some money aside for additional costs.
For instance, if your property is over the Stamp Duty threshold of £250,000 (£425,000 for first-time buyers) you will have to pay stamp duty. This is a government tax that applies in England and Northern Ireland that is charged as a percentage of the property’s purchase price. Use our stamp duty calculator to find out how much you will have to pay.
You will also have solicitor and mortgage arrangement fees to consider, as well as the mortgage arrangement fee and any potential repairs you may have to undertake on your new property.
It’s also a good idea to have three to six months of household bills and expenses (including your mortgage payments) in an accessible savings account for unexpected costs.
Can I get an 85% LTV buy-to-let mortgage?
It's very unlikely that you'll be able to get a buy to let mortgage at 85% LTV - although some of the more specialist lenders have been known to accept a 15% deposit from experienced landlords. Of course, this depends on your circumstances, but is unlikely to be available to first time landlords.
Most buy to let lenders require a minimum deposit of at least 20 - 25% and possibly as much as 40% in some cases
Portfolio landlords who have several properties can often use the equity in their other properties to secure borrowing, however, meaning they wouldn't necessarily need to find a cash deposit at all. It's worth speaking to a mortgage broker to discuss your buy-to-let mortgage options.
Some lenders offer higher LTV mortgages than 85%, but you'll typically pay for this in the rates offered. It can certainly be worth holding off until you have a larger deposit to get more competitive rates, especially in the current market”Kellie Steed, Mortgage Content Writer
Alternatives to 85% LTV mortgages
Unsure whether you can afford a 15% deposit, or want to see if a lower LTV product might suit you better? Find out about our best mortgage rates and deals or compare different LTV products by clicking the links below.
Last updated: 06 September 2023