Loan-to-Value (LTV) is the ratio of your mortgage to the property value. A 90% LTV means you're borrowing 90% and have a 10% deposit. Lower LTV = less risk for lenders = better interest rates for you. The difference between 90% and 75% LTV can save thousands in interest over a mortgage term.
≤60% — Best available rates. Reserve for those with large deposits or significant equity.
60–75% — Very competitive rates. Target for remortgage after a few years.
75–80% — Good rates. Standard for many first-time buyers over time.
85–90% — Fewer lender options, higher rates.
90–95% — Limited options. Government schemes (e.g. Mortgage Guarantee Scheme) may help.
How do I reduce my LTV?
Save a larger deposit before buying, or wait for your property to increase in value (which increases your equity). Overpaying your mortgage also reduces LTV over time.
What is the minimum deposit in the UK?
Most lenders require at least 5% deposit (95% LTV). For better rates, aim for 10% (90%) or ideally 25% (75%).