Which are the best 80% LTV mortgages?

What is an 80% LTV mortgage?

The loan-to-value (LTV) ratio is the size of your mortgage compared with the value of the property. If you have an 80% LTV mortgage it means the mortgage is worth 80% of the total value of your property, with the remaining 20% coming from a deposit for first-time buyers or equity built up in the property for those who are remortgaging.

To work out the LTV, you simply divide the mortgage amount by the value of the property. So, for a property worth £350,000, with a deposit of £70,000, the calculation is:

£280,000 / £350,000 = 0.8 (multiply by 100 = 80% LTV)

Generally speaking, the lower the LTV, the lower the rate you will pay on your mortgage.

For further information on deposits for first-time buyers, check out our article "How much deposit do first-time buyers really need?". You can also speak to a specialist mortgage broker at Tembo* - Tembo Money arranges mortgages for all types of borrowers but it specialises in first-time buyer solutions to help you achieve mortgage success.

How can I find the best 80% LTV mortgage for me?

Whether you are a first-time buyer, remortgaging or moving home you will need to decide which type of 80% LTV mortgage to choose. The two most popular options are:

Fixed-rate 80% LTV mortgage: A fixed-rate deal means your monthly repayment is set at a certain level for a specific amount of time, which ranges from 2 years up to 40 years. For more details, read "What is a fixed-rate mortgage? Everything you need to know"
Tracker rate 80% LTV mortgage: A tracker rate typically follows the Bank of England base rate, with the monthly payments fluctuating if this base rate changes. Again, you can choose a specific period - generally 2, 5 or 10 years - at a set percentage above the base rate, before the mortgage reverts to a standard variable rate, which is more expensive. There is more information in our article "What is a tracker mortgage and is it right for you?".

Once you have decided on the type of mortgage you would like, check out our mortgage comparison tool, powered by Habito, which instantly provides you with details of the best options for your specific circumstances.

Alternatively, contact online mortgage broker Habito* directly as its advisers will be able to guide you through the available mortgage deals, as well as provide access to products from lenders who will only allow applications through an intermediary. They will also highlight factors such as early repayment charges that may make some deals more attractive if this is important to you.

If you would like to find a mortgage broker in your local area, you can use the directory services site, VouchedFor* or Unbiased* - both provide you with qualified financial professionals that you can search based on customers' reviews of the service they provide.

Meanwhile, the tables below give you an indication of the interest rates you can expect to pay and the arrangement fees charged by the lenders. We have presented the rates for a repayment mortgage and rates for an interest-only mortgage are often higher. They also show each lender's standard variable rate (SVR), which borrowers will be moved to at the end of the initial mortgage deal.

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Best 80% LTV mortgages for first-time buyers

Based on a property valued at £350,000 with a £70,000 deposit and a mortgage term of 25 years. It is based on a repayment mortgage with the fees paid upfront.