Compare our best 85% LTV mortgages

85% LTV mortgages are available to those with a 15% deposit or home equity. They have lower rates than mortgages with a higher LTV (loan to value). Compare our best 85% LTV mortgages with our rate table. Learn more about 85% LTV mortgages and remortgages by reading our short guide.

Mortgage type

Property price

£

Mortgage amount

£

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best 85% LTV mortgage rates

  • Barclays 2 Year Fixed mortgage

    Initial rate 1.51%. APRC 3.9%. Set-up fees £999
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.51%. APRC 3.8%. Set-up fees £999
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.54%. APRC 3.8%. Set-up fees £1,499
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.54%. APRC 3.8%. Set-up fees £999
  • Post Office Money 2 Year Fixed mortgage

    Initial rate 1.56%. APRC 4.3%. Set-up fees £995
  • Halifax 2 Year Fixed mortgage

    Initial rate 1.58%. APRC 4%. Set-up fees £1,495
  • Barclays 3 Year Fixed mortgage

    Initial rate 1.58%. APRC 3.6%. Set-up fees £999
  • Coventry Building Society 2 Year Fixed mortgage

    Initial rate 1.59%. APRC 4.4%. Set-up fees £999
  • We've found 1088 mortgage deals

    Barclays

    2 Year Fixed

    Initial rate

    1.51%

    until 31-01-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £680.69

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.51%

    until 31-01-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £680.69

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.51%

    until 31-01-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £680.69

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.51%

    until 31-01-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £680.69

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.54%

    until 28-02-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £1,499

    Monthly payment

    £683.09

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.54%

    until 28-02-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £683.09

    for 24 months

    Post Office Money

    2 Year Fixed

    Initial rate

    1.56%

    until 30-11-2021

    APRC

    4.3%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £684.69

    for 24 months

    Halifax

    2 Year Fixed

    Initial rate

    1.58%

    until 28-02-2022

    APRC

    4%

    overall cost for comparison

    Set-up fees

    £1,495

    Monthly payment

    £686.30

    for 24 months

    Barclays

    3 Year Fixed

    Initial rate

    1.58%

    until 31-01-2023

    APRC

    3.6%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £686.30

    for 36 months

    Coventry Building Society

    2 Year Fixed

    Initial rate

    1.59%

    until 31-12-2021

    APRC

    4.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £687.10

    for 24 months

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    Representative example:

    If you borrowed £200,000 payable over 25 years, with an initial fixed-rate for two years at 4.79%, your monthly payments would be £1,144.84 for 24 months. This would then revert to a standard variable rate (SVR) of 4.24% for the remaining 23 years, costing £1,086.24 per month for 276 months. Overall cost for comparison is 4.5% APRC representative. The total amount payable over the full term would be £328,272, including product fee of £995 and interest of £127,277.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

    What is an 85% LTV mortgage?

    It’s where you need to borrow 85% of the cost of the property that you want to buy. The other 15% has to be provided by you, either in the form of a deposit or home equity if you’re moving home or remortgaging.

    For example, if you’d like to buy a home valued at £200,000 with an 85% LTV mortgage, you’d need a deposit of £30,000 – quite a hefty chunk of change. The remaining £170,000 would be lent to you by your mortgage lender.

    If you can obtain an 85% LTV mortgage you will usually be rewarded with a much lower interest rate than a 90% or 95% LTV mortgage, which could save you thousands of pounds in interest repayments over a few years.

    Buying your first home with an 85% LTV mortgage

    Accruing a deposit of 15% as a first-time buyer certainly isn’t easy if you live in an expensive part of the UK – but if you can manage it, you’ll be rewarded with mortgage products with preferential interest rates compared to 90 and 95% LTV mortgages.

    For example, the best two-year fixed rate 85% LTV mortgages currently offer a promotional interest rate of around 1.7%. With an LTV of 95%, the best rates are more like 2.5%. On a mortgage of £200,000, that 0.8% lower interest rate equates to a saving of over £2,000 in interest repayments in just two years.

    Remortgaging your home with an 85% LTV mortgage

    If you’ve built up some positive equity in your current property, and you’d like to move to a new home, save money, or need to borrow money for home improvements, then an 85% LTV mortgage could be a good solution for you.

    If you’re moving to a new property, you’ll need a deposit, home equity, or a combination of the two, totalling 15% of the new property’s purchase price.

    For example, if your current home is valued at £500,000, and owe £400,000 on your mortgage, you have a positive equity of £100,000 – which could then be used to secure an 85% LTV mortgage on a property valued at £660,000. Assuming you have the income to borrow that much money, of course!

    Alternatively, you could stay where you are and use the positive equity to get a new mortgage at 80% LTV and enjoy a lower interest rate – or you could remortgage to borrow more money from the bank, which you could then spend on renovations or other home improvements.

    If you’d like to find out how much equity you have in your current property, you can usually find out how much you owe your mortgage provider by looking at your most recent statement – or alternatively, just phone them up and ask. You can find out the rough value of your home by doing some research online – or ask an estate agent for a valuation.

    Compare other types of mortgage

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    Last updated: 3 July, 2019

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