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

  • TSB 2 Year Fixed mortgage

    Initial rate 1.44%. APRC 3.4%. Set-up fees £995
  • Monmouthshire Building Society 2 Year Variable mortgage

    Initial rate 1.65%. APRC 3.9%. Set-up fees £0
  • Nationwide Building Society 2 Year Fixed mortgage

    Initial rate 1.69%. APRC 3.4%. Set-up fees £999
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.74%. APRC 3.4%. Set-up fees £999
  • TSB 2 Year Fixed mortgage

    Initial rate 1.79%. APRC 3.3%. Set-up fees £0
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.8%. APRC 3.6%. Set-up fees £1,499
  • TSB 5 Year Fixed mortgage

    Initial rate 1.84%. APRC 3%. Set-up fees £995
  • Monmouthshire Building Society 2 Year Variable mortgage

    Initial rate 1.9%. APRC 4.1%. Set-up fees £0
  • Cumberland 2 Year Variable mortgage

    Initial rate 1.91%. APRC 4.1%. Set-up fees £1,999
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.91%. APRC 3.5%. Set-up fees £999
  • We've found 449 mortgage deals

    TSB

    2 Year Fixed

    Initial rate

    1.44%

    until 30-11-2022

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £675.11

    for 24 months

    Monmouthshire Building Society

    2 Year Variable

    Initial rate

    1.65%

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £691.94

    for 24 months

    Nationwide Building Society

    2 Year Fixed

    Initial rate

    1.69%

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £695.17

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.74%

    until 31-10-2022

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £699.23

    for 24 months

    TSB

    2 Year Fixed

    Initial rate

    1.79%

    until 30-11-2022

    APRC

    3.3%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £703.30

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.8%

    until 30-11-2022

    APRC

    3.6%

    overall cost for comparison

    Set-up fees

    £1,499

    Monthly payment

    £704.11

    for 24 months

    TSB

    5 Year Fixed

    Initial rate

    1.84%

    until 30-11-2025

    APRC

    3%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £707.38

    for 60 months

    Monmouthshire Building Society

    2 Year Variable

    Initial rate

    1.9%

    APRC

    4.1%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £712.30

    for 24 months

    Cumberland

    2 Year Variable

    Initial rate

    1.91%

    APRC

    4.1%

    overall cost for comparison

    Set-up fees

    £1,999

    Monthly payment

    £713.13

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.91%

    until 30-11-2022

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £713.13

    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?

    An 85% LTV (Loan to Value) mortgage requires you 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 £400,000 with an 85% LTV mortgage, you’d need a deposit of £60,000 – quite a hefty chunk of change. The remaining £340,000 would be lent to you by your mortgage lender.

    If you can obtain an 85% LTV mortgage, you will usually be offered a much lower interest rate than those needing a 90% or 95% LTV mortgage.

    When you consider this is a loan that you will have for 25 years or more, even a tiny reduction in interest rate can shave thousands of pounds off your total interest paid over the duration of the loan.

    Buying your first home with an 85% LTV mortgage

    Accruing a deposit of 15% as a first-time buyer certainly isn’t easy particularly if you have quite high outgoings or live in an expensive part of the UK. But the good news is, 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 promotional interest rates of around 1.4%.

    With an LTV of 95%, the best rates are more like 2.2%. On a mortgage of £200,000, the 85% LTV mortgage rate can equate to a saving of over £2,000 in interest repayments in just two years.

    If it’s possible to save for a larger deposit, this will mean you need to borrow less. Therefore, you’ll be paying less interest on that home loan, too. It’s a win-win.

    Remortgaging your home with an 85% LTV mortgage

    So, what if you are already a homeowner and would like to take advantage of a better mortgage deal?

    If you’ve built up some positive equity in your current property and would like to move home, save money, or borrow money for home improvements, then remortgaging to an 85% LTV deal 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 you owe £400,000 on your mortgage, good news: you have a positive equity of £100,000. This could then be used to secure an 85% LTV mortgage on a property valued at £660,000. Assuming you have the income to support this commitment.

    Alternatively, you could stay where you are and use the positive equity to get a new mortgage at 80% LTV and enjoy an even 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 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.

    Watch out for fees

    Be warned that while some lenders may offer temptingly low mortgage deals, when you scratch beneath the surface you find you will need to pay legal, valuation or administration costs that can add up to thousands.

    Always find out what fees you will be charged in advance. Use the Annual Percentage Rate of Charge (APRC) to compare products as this incorporates some mortgage-related fees in its calculation.

    If the best deal for you does involve fees, lenders will typically add this cost to the mortgage – meaning you could be paying interest on this money for the duration of your home loan. If you can afford to, consider asking your lender if you can pay this upfront.

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    Last updated: 7 August, 2020