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.
Get a FREE mortgage review
Our partner Vouchedfor will help you get the best mortgage rate with a free mortgage review
- From a 5-star rated mortgage adviser
- Typically save £80 per month per £100,000 of your mortgage
- No obligation
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.
Cheapest 2-year fixed-rate 80% LTV mortgages - (First-time buyers)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Barclays | 4.38% | 6.99% | £2,114 |
| MPowered Mortgages | 4.39% | 7.49% | £1,029 |
| Virgin Money | 4.42% | 8.74% | £1,195 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year fixed-rate 80% LTV mortgages - (First-time buyers)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Virgin Money | 4.12% | 8.74% | £1,195 |
| Halifax | 4.13% | 8.49% | £1,099 |
| HSBC | 4.13% | 6.99% | £1,516 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 2-year variable-rate 80% LTV mortgages - (First-time buyers)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Leek United Building Society | 4.74% | 7.99% | £1,100 |
| Scottish Building Society | 4.79% | 8.24% | £1,485 |
| Furness Building Society | 4.84% | 8.54% | £1,139 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year variable-rate 80% LTV mortgages - (First-time buyers)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Earl Shilton Building Society | 5.94% | 8.19% | £305 |
| Barclays | 6.00% | 6.99% | £1,114 |
| Vernon Building Society | 6.09% | 8.10% | £719 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Best 80% LTV mortgages for people remortgaging
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.
Cheapest 2-year fixed-rate 80% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Bank of Ireland | 4.45% | 8.04% | £1,205 |
| Furness Building Society | 4.54% | 8.54% | £1,139 |
| Principality Building Society | 4.55% | 7.43% | £968 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year fixed-rate 80% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Leek United Building Society | 4.15% | 7.99% | £1,600 |
| Principality Building Society | 4.19% | 7.43% | £1,468 |
| Vernon Building Society | 4.29% | 8.10% | £1,444 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 2-year tracker 80% LTV mortgages for remortgage - (Remortgaging)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Leek United Building Society | 4.74% | 7.99% | £1,100 |
| Scottish Building Society | 4.79% | 8.24% | £1,095 |
| Furness Building Society | 4.84% | 8.54% | £1,139 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year tracker 80% LTV mortgages for remortgage - (Remortgaging)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Barclays | 6.00% | 6.99% | £1,114 |
| Earl Shilton Building Society | 6.34% | 8.19% | £1,304 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
What are the advantages of an 80% LTV mortgage?
- Cheaper rates than for higher LTV alternatives
- A better choice of products than for higher LTV deals
- Smaller possibility of falling into negative equity
What are the disadvantages of an 80% LTV mortgage?
- If you can secure an extra 5% deposit, lenders tend to offer much better mortgage rates at 75% LTV
- If you are buying in an expensive area, a 20% deposit could be high and take a long time to save up
What are the alternatives to an 80% LTV mortgage?
If you are considering a higher LTV mortgage, read our articles "Which are the best 95% LTV mortgages - and should I get one?" and "Can I get a mortgage without a deposit?".
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, VouchedFor, Unbiased, Tembo