Compare 60% LTV Mortgages

A 60% LTV mortgage means you need a deposit of 40% of the value of the property. To find the latest rates and compare deals, just choose your mortgage type below, answer a few quick questions and you’ll be matched with deals across lenders.

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Information written by Connor Campbell Last updated on 11 January 2022.

How do I choose the best 60% LTV mortgage for me?

Our mortgage comparison tool couldn’t be easier to use, and will help you find 60% LTV mortgages that fit your requirements.

To start your mortgage journey, all you need to do is:

  1. Answer a few short questions, such as why you are comparing mortgages, details of any existing mortgages, and what you are looking for in a mortgage.
  2. The comparison tool will then search the mortgage market for you.
  3. You will then only be shown the mortgages that are relevant to your circumstances and needs.
  4. Once you have compared mortgages, you can apply directly or through a mortgage broker.

Is a 60% LTV good?

There is no question that a 60% loan-to-value ratio is seen as a very strong LTV when applying for a mortgage.

This is because the more money you provide as a deposit, the less of a risk you are to lenders, in theory.

This means it is likely that you will be offered some of the most competitive interest rates, leading to smaller monthly repayments.

Of course, saving for a 40% deposit mortgage can be difficult, and there are plenty of higher LTV – i.e. lower deposit – mortgages available for a range of different budgets.

However, if you have been able to accrue such a large deposit, you will have a wide array of mortgages to choose from.

Can I get a 60% LTV mortgage?

To get a 60% LTV mortgage, you need to have a deposit worth 40% of the value of the property you would like to buy.

For example, if you wanted to buy a home worth £200,000, you would need a deposit worth £80,000 to be able to access a 60% LTV mortgage.

However, though you will be in a very strong position, you are not guaranteed to get a mortgage even with a 40% deposit.

You will still need to meet the lender’s various criteria. This will include passing credit and affordability checks, proving your deposit has come from an approved source, and meeting minimum and maximum age limits.

What 60% LTV mortgage rates could I get?

The specifics of your mortgage rate will not only depend on the size of your deposit, but on your overall financial health.

When applying for a 60% LTV mortgage, you will likely be offered the below types of mortgage rates:

  • Fixed mortgage rates: an interest rate that will not change for the duration of the period specified, keeping your repayments the same month on month. This will usually only apply for the first two to five years of your mortgage.
  • Standard variable mortgage rates: an interest rate that can rise and fall on a monthly basis, therefore causing your monthly repayments to go up and down. You will normally be put on this rate at the end of your introductory deal.
  • Discounted mortgage rates: a type of variable mortgage rate, discounted from the standard variable rate (SVR) for a set period of time.
  • Tracker mortgage rates: a type of variable mortgage rate, which normally moves up and down in line with the Bank of England base rate. The mortgage rate itself will be higher than the base rate.

It is important to carefully consider each type of mortgage rate to find the best fit for your financial situation.

Does a 40% deposit give you a good chance of getting a mortgage?

A 40% deposit is a substantial amount of money to contribute towards buying a property, and will put you in a very strong position when applying for a mortgage.

It also means that you can potentially access the best, and widest, selection of mortgage products available.

It is important to remember, however, that you will still need to pass the lender’s credit and affordability checks, and supply the lender with the various documents they require, including proof of where your deposit has come from.

What other LTV mortgages should I consider?

While it is fantastic if you have a 40% deposit, that won’t be possible for many prospective buyers.

And even if you have got a 40% deposit, it might be worth opting for a mortgage with a higher LTV to ensure you still have some savings once you have bought your property. This could be so you have money to make improvements to your new home, or to ensure that you have an emergency fund in case anything goes wrong.

Normally, you can access some of the best mortgage rates with a 25% deposit and above. You could therefore consider an LTV of 75%, instead of 60%, if you want to make sure you have savings left over while still getting a competitive mortgage rate.

60% LTV Mortgages FAQs

What is a 60% LTV mortgage?

With a 60% LTV mortgage, the provider is willing to offer 60% loan to value. This shows the amount of money being lent as a percentage of a property’s total value. The remaining sum, worth 40%, is expected to be paid by the borrower up front, in the form of a deposit.

Are higher LTVs more cost-effective for buyers?

Higher-LTV mortgages, particularly in the 70-90% range, might prove more cost-effective for some buyers, particularly those entering the housing market for the first time, as they will have a lower deposit to save up for in comparison to the deposit on, say, a 60% LTV mortgage.

What’s the lowest LTV you can find?

It’s rare to find mortgages for first time buyers with LTVs lower than 50% to 60%, lower LTV mortgages are available for customers looking to re-mortgage or move house though.

Is interest lower on a 60% LTV mortgage?

One of the benefits of having a lower LTV on a mortgage is that interest paid on a monthly basis is lower because the provider has less risk, given the borrower’s role in providing almost half of the property’s value as a deposit.

Why does interest matter on a mortgage?

Mortgages are long-term financial commitments, so it’s important to be comfortable with the financial cost associated with having to pay a specific rate of interest on your mortgage, not just for one month but for many years or even decades to come.

Is a 60% LTV mortgage right for me?

Whether a 60% LTV mortgage is suitable or not depends on whether you are able to provide a deposit as large as 40% of the property’s value. A mortgage of any kind should only be sought when a borrower feels confident that they can consistently meet the monthly repayments.

How do I compare 60% LTV mortgages for the best deals?

NerdWallet’s comparison tool conducts a whole market mortgage search to make sure you find the best 60% LTV mortgage deal for your financial situation.

What does a fixed-rate mortgage entail?

A fixed-rate 60% LTV mortgage has the benefit of allowing the borrower to repay their mortgage on a fixed rate of interest for a limited period. These types of mortgage are especially popular as a way of locking in low interest while rates remain low on the market.

How does a fixed rate differ from a variable rate?

Variable rate mortgages charge a fluctuating rate of interest for the duration of your mortgage term. Variable rates are determined by market rates set by competing providers. Rate decisions by the Bank of England are also instrumental in influencing the overall direction of mortgage market rates.

Can I get a buy-to-let 60% LTV mortgage?

Yes, you can get 60% LTV buy-to-let mortgages. As with a standard residential mortgage, to get a buy-to-let mortgage at 60% LTV, you would need to provide a deposit worth 40% of the property you intend to purchase. You would then also need to satisfy the lender’s other requirements.

Can I get a bad credit mortgage with a 40% deposit?

You may find it easier to apply for a bad credit mortgage with a large deposit, such as a 40% deposit. This is because the bigger your deposit, the less of a risk you pose to lenders.

However, you still will need to pass the lender’s other credit and affordability checks, which will help dictate the size of the deposit you need to provide to get a mortgage with bad credit.

Can I get a mortgage as a first-time buyer with a 40% deposit?

Yes, you can get a mortgage as a first-time buyer with a 40% deposit, as long as you pass the lender’s other requirements.

However, that level of deposit is likely beyond many prospective first-time buyers. If you are worried about the size of your deposit, you can access up to 95% LTV mortgages that require a deposit of just 5%.

Can I get a mortgage with a gifted 40% deposit?

Yes, you can get a mortgage with a gifted 40% deposit, as there is no limit on the size of the gifted deposit you can use. However, you will still need to meet the lender’s criteria surrounding gifted deposits, as well as their other borrowing requirements.

This could include proving the gift is from an immediate relative, producing a ‘Gifted Deposit Letter’ to confirm there is no expectation of repayment, and proof of funds from the person gifting you the deposit.

Can I repay my 60% LTV mortgage early?

Early repayment is an option on many mortgages. However, you should check terms and conditions with your provider before pursuing this course of action, because providers may place an early repayment charge (ERC) on you, adding to the cost of paying the mortgage sooner than originally intended.

About the author:

Connor is a writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and The Independent. Read more

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