Which are the best 60% LTV mortgages – and can I get one?

What is a 60% LTV mortgage?

A 60% loan-to-value (LTV) mortgage is one which provides a mortgage loan that covers 60% of the value of the property being purchased. The remaining 40% of the property price is covered by a deposit if the mortgage is being arranged for a purchase. If the mortgage loan is being arranged as a remortgage - a new mortgage deal based on a property that has already been purchased - 40% denotes the equity within the property and 60% is the mortgage loan amount that will need to be borrowed on a remortgage basis.

You can work out the loan-to-value for your property purchase if you divide the mortgage loan that is needed by the full property purchase price and then multiply this by 100.

So, for a property worth £250,000, with a deposit of £150,000, the calculation is:

£150,000 / £250,000 = 0.6 (multiply by 100 = 60% LTV)

Usually the lower the LTV, the better the mortgage deal you will be able to secure - a better mortgage deal will usually offer a lower interest rate charge as well as better terms.

You can, of course, source mortgage deals based on different LTV amounts and mortgage deals are commonly available on the basis of 90%, 80%, 70% & 60% LTV. You can even source a mortgage offer on the basis of 100% LTV but there are fewer such deals available as very few lenders will offer a mortgage loan based on covering the entire purchase price of a property without a deposit.

60% LTV mortgages are commonly offered as fixed-rate mortgages or tracker mortgages, but you can also choose an offset mortgage. You can check the "Best mortgage rates in the UK" - an article that we regularly update with the most recent mortgage deals for a wide range of specifications.

How can I find the best 60% LTV mortgage for me?

You can find 60% LTV mortgage offers across many lenders as most banks and building societies prefer to lend on the basis of a larger deposit or equity amount as this lowers the risk of recouping the loan in case the borrower were to default. 60% LTV mortgages are generally the lowest LTV rate that is offered although you can arrange a mortgage that requires less than 60% LTV.

In the below tables, we share the best offers for a 60% LTV mortgage on the basis of a purchase mortgage or a remortgage deal. You can also find the best 60% LTV mortgage offers using our mortgage rate comparison tool which allows you to enter your specific information for a bespoke list of mortgage deals that you could apply for. There are a number of mortgage deals to choose from and you can arrange this according to the best mortgage interest rates, the lowest overall costs over the deal period or over the whole term of your mortgage.

Alternatively, speak to a mortgage specialist* who can search the market on your behalf as well as assist you in completing your mortgage application. If you would prefer to speak to a mortgage broker in your area, you can source one using the online professional directory services provided by VouchedFor*. The directory arranges financial professionals according to your postcode and the type of mortgage assistance you need - you can then make your choice based on customers' reviews alongside each profile.

Best 60% LTV mortgages for home movers

Home movers and first-time buyers can access a 60% LTV mortgage if they can contribute at least 40% of the purchase price as a deposit. You can choose between a fixed-rate or tracker-rate deal and how long you would like to fix your mortgage rate for - this is referred to as the deal period.

Here we have listed the best 60% LTV mortgage deals based on fixed and tracker rates over a 2 or 5-year initial period. We have assumed a purchase mortgage arranged on a repayment basis where the property purchase price is £350,000 and the mortgage is repaid over 25 years. The deposit amount for this example would be £140,000 but the deposit needed to achieve 60% LTV will vary depending on the purchase price of your property. The interest rate and type will be applied during the initial period of the deal and will revert to the standard variable rate (SVR) once this set period ends.

You can also check for specific mortgage deals using our mortgage rate comparison tool.

Cheapest 2-year fixed-rate 60% LTV mortgages (home movers)

Lender	Initial interest rate	Interest rate after 2 years	Lender fee
Barclays	3.96%	6.99%	£1,014
NatWest	3.99%	7.99%	£1,025
Royal Bank of Scotland	3.99%	7.99%	£1,025

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

Cheapest 5-year fixed-rate 60% LTV mortgages (home movers)

Lender	Initial interest rate	Interest rate after 5 years	Lender fee
Royal Bank of Scotland	3.84%	7.99%	£1,025
NatWest	3.84%	7.99%	£1,025
Halifax	3.85%	8.49%	£1,099

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

Cheapest 2-year tracker-rate 60% LTV mortgages (home movers)

Lender	Initial interest rate	Interest rate after 2 years	Lender fee
Scottish Building Society	4.59%	8.24%	£1,485
Leek United Building Society	4.74%	7.99%	£1,100
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-rate 60% LTV mortgages (home movers)

Lender	Initial interest rate	Interest rate after 5 years	Lender fee
Earl Shilton Building Society	4.99%	8.19%	£1,530
Barclays	5.60%	6.99%	£1,114
Scottish Widows	5.74%	8.49%	£1,599

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

Best 60% LTV mortgages for remortgaging

Remortgage deals are offered to those borrowers who are looking to transfer their mortgage to a new mortgage deal either because they have come to the end of the mortgage deal period or because they wish to raise more money by releasing equity in their home. Here we list some of the mortgage deals available to those looking to remortgage on the basis of 60% LTV.

Best 60% LTV mortgages for remortgaging

Cheapest 2-year fixed-rate 60% LTV mortgages (remortgage)

Lender	Initial interest rate	Interest rate after 2 years	Lender fee
Coventry Building Society	4.08%	7.24%	£1,007
Santander	4.10%	7.25%	£1,224
Nationwide	4.12%	7.74%	£999

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

Cheapest 5-year fixed-rate 60% LTV mortgages (remortgage)

Lender	Initial interest rate	Interest rate after 5 years	Lender fee
Santander	3.81%	7.25%	£1,224
NatWest	3.82%	7.99%	£1,025
Royal Bank of Scotland	3.82%	7.99%	£1,025

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

Cheapest 2-year tracker-rate 60% LTV mortgages (remortgage)

Lender	Initial interest rate	Interest rate after 2 years	Lender fee
Scottish Building Society	4.59%	8.24%	£1,095
Leek United Building Society	4.74%	7.99%	£1,100
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-rate 60% LTV mortgages (remortgage)

Lender	Initial interest rate	Interest rate after 5 years	Lender fee
Earl Shilton Building Society	4.99%	8.19%	£1,530
Barclays	5.60%	6.99%	£1,114

Rates based on a property price of £350,000 with a repayment mortgage over 25 years

What are the advantages of a 60% LTV mortgage?

• You are likely to be able to secure a lower interest rate on your mortgage deal as lenders tend to offer the best rates at 60% LTV.
• Having a higher LTV usually means you have the ability to choose from a wider range of mortgage deals as more lenders offer mortgage loans at 60% LTV.
• You may benefit from paying less on your monthly mortgage repayment as you need to borrow less money.
• You may have reduced exposure to negative equity due to the fact that you are starting with 40% equity which is relatively high.

What are the disadvantages of a 60% LTV mortgage?

• It can be difficult to save a 40% deposit towards buying a property. A 40% deposit on the average house price of £280,000 in the UK is £112,000 - a large sum to save for most homebuyers.
• You could end up tying up all of your savings in your property where they are more difficult to access at short notice. In this case, you may wish to consider an offset mortgage that allows you to use your savings to offset the interest that you pay on your mortgage balance. It can be a good idea to discuss your options with a mortgage broker* who will assess and compare mortgages based on your preferences and financial goals and make recommendations that help you achieve the best outcomes.

What are the alternatives to a 60% LTV mortgage?

The alternatives to a 60% LTV mortgage are mortgage deals with either a higher or lower LTV such as a 70% LTV, 80% LTV or even a 90% LTV. Choosing a mortgage deal with a lower LTV such as 50% or 40% LTV may not drastically improve the deal that you are offered but homeowners who have a large amount of equity in their home may find that their loan-to-value is much lower than 60%.

You will find mortgage deals and information about the higher loan-to-value options in our articles, "Is a 90% LTV mortgage right for you? How to find the best deals", "Which are the best 80% LTV mortgages?" and "Which are the best 95% LTV mortgages and should I get one?".

 

 

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