Compare 50% LTV Mortgages

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About Mortgages

A 50% loan-to-value (LTV) mortgage means your deposit covers half the value of the property. To find and compare 50% LTV mortgages, just choose your type of borrowing below, answer a few questions and you’ll be matched with deals across lenders.

Think carefully about securing debt against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

Last updated on 15 August 2022.

How to compare 50% LTV mortgages with NerdWallet

It couldn’t be easier to compare 50% LTV mortgages with NerdWallet.

Simply click on the button below and answer a short series of questions about your current situation.

These will include the reason you are comparing mortgages – whether you are a first-time buyer or are remortgaging, for instance – the details of any existing mortgage, the value of the property you plan to mortgage, and what you are looking for from your new mortgage.

Our super-speedy comparison tool will then take a look at the entire mortgage market, and select the providers and offers that are most tailored to your needs.

From there, you can compare interest rates, APRCs, initial payments and more, before applying directly or through a broker.

What do I need to be eligible for a 50% LTV mortgage?

First and foremost, to be eligible for a 50% LTV mortgage, you will need a deposit worth at least 50% of the value of the property you intend to purchase.

Other than that, you will need to meet the mortgage provider’s lending criteria. Although it can vary from lender to lender, it tends to include:

  • Proving your deposit comes from an approved source.
  • Passing the lender’s affordability and sustainability criteria, based on your income and expenditure.
  • Supplying the required proofs of ID, income and evidence of deposit.
  • A successful credit check.
  • Being within the maximum and minimum age requirements.

Not only will these factors affect whether or not your mortgage application is successful, they will also help determine the terms of your mortgage.

What are the advantages of a 50% LTV mortgage?

There are a number of advantages to opting for a 50% deposit mortgage. These include:

  • The ability to pay your mortgage off quicker, as the amount of money you are borrowing is reduced.
  • The choice of lower monthly repayments.
  • The possibility of accessing lower mortgage interest rates, as you are seen as less risky by lenders.
  • A better chance of a successful mortgage application if you have bad credit, though you may still have to pay higher interest rates.

What are the disadvantages of a 50% LTV mortgage?

A 50% LTV mortgage would be a substantial sum of money to meet the deposit criteria– an option that may only be available to a select few, especially when it comes to first-time buyers.

But don’t worry – you can still get a mortgage with a much smaller deposit. This can sometimes be as low as 5% of the overall value of the property.

You should also avoid spending all of your savings just to get a 50% LTV mortgage. If you do this, you may not have enough money left over if you need to make improvements to your property, or if you encounter any financial emergencies.

50% Deposit Mortgages FAQ

What is a 50% LTV mortgage?

Loan to value (LTV) is the proportion of the value of a property that a mortgage accounts for. Some providers offer mortgages at an LTV of 50%, which would mean that half the property’s value is paid for by the mortgage itself, with the remaining half coming from your deposit.

How do you calculate LTV?

When seeking a mortgage, you simply divide the sum you wish to borrow by the total value of a property and multiply it by 100. This should give you a percentage figure adding up to 50% or another percentage figure, depending on the LTV you can secure.

What’s the ideal LTV for a mortgage?

This depends on your own financial circumstances. Some borrowers consider an LTV of 80% to be an ideal LTV, because it helps secure an affordable rate of interest and lenders favour LTV where the risk is reduced by larger deposits. However if you can afford a larger deposit, it is likely to reduce the overall costs you'll pay.

Is a higher LTV riskier on a mortgage?

Yes. The higher the LTV on your mortgage, the riskier it is for the lender to offer you a mortgage, because less equity is offered up by the borrower and the likelihood of default is therefore greater.

Can you get a 50% LTV mortgage on bad credit?

It’s easier to secure a mortgage with an LTV as low as 50% on bad credit, but you need to be mindful of how bad credit will limit the options available to you. Out of the mortgages still open, interest will be higher, as poor credit is perceived as higher risk for lenders.

» COMPARE: Bad credit mortgages

How do I secure a 50% LTV mortgage on bad credit?

Despite having poor credit, a 50% LTV mortgage can still be obtained, but it's very dependent on your personal circumstances. Showing proof of a stable income or offering an even higher deposit to allay any concerns the provider may have about high risk and help your application. Seeking advice is always a good idea in these circumstances.

What happens if I struggle to meet repayments?

While having a 50% LTV on a mortgage offers you more competitive mortgage rates, defaulting on a mortgage is something that should be avoided at all costs.Doing so could result in your home being repossessed. Your credit rating would also be damaged. Always contact a lender as soon as you are likely to face repayment issues.

NerdWallet has selected Koodoo to provide you with this information-only online comparison service on a non-advised basis. NerdWallet will receive a share of the commission that Koodoo earns from the lender or from our partnered broker, Fluent Mortgages.

Koodoo is the trading name of Mortgage Power Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 845978), and is a registered company in England and Wales (company registration number 10978680), with a registered address at Scale Space, 58 Wood Lane, London, W12 7RZ

Fluent Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FRN 458914), and is a registered company in England and Wales (company registration number 10978680), with a registered address at 102 Rivington House, Chorley, New Road, Horwich, Bolton, BL6 5UE