Compare 70% LTV Mortgages
A 70% LTV mortgage means you need a deposit of 30% of the value of the property. Just choose your type of borrowing below, answer a few questions and compare 70% LTV deals across lenders.
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Is 70% LTV good?
Considering that lenders offer mortgages with an LTV as high as 95%, a 70% LTV mortgage is among the more competitive loan-to-value ratios and is unlikely to be prohibitively expensive in terms of interest rates.
For example, if you wanted to buy a property worth £300,000 with a 70% LTV mortgage, you would need a deposit of £90,000. That’s not a small sum by any means, but neither is it beyond the realms of possibility.
With a 70% LTV mortgage, you may be able to access better interest rates, as lenders will see you as less of a risk.
Can I get a 70% mortgage?
As its name suggests, the main requirement to apply for a 70% LTV mortgage is a deposit worth 30% of the property you are looking to buy.
However, having that deposit will not guarantee that your application is successful. You will also need to meet the lending criteria, some of which can differ between providers.
You will likely need to:
- Prove your deposit comes from an approved source.
- Meet the lender’s affordability checks, based on your income and spending.
- Supply the required proofs of ID, income and evidence of deposit.
- Pass the lender’s credit check.
- Be within the maximum and minimum age requirements.
The outcome of these checks will also help inform the terms of the mortgage you are eventually offered.
How to find the best 70% LTV mortgages for me
Our simple, quick-to-use mortgage comparison tool can help ensure you find the best 70% LTV mortgage available for your current situation.
First, we need you to answer a few short questions. These will cover your existing mortgage (if applicable), the value of the property you wish to buy, and the kinds of rates and terms you are looking for in your new mortgage.
Then we will compare providers across the mortgage market and only show you those offers that match your search requirements.
Once you have chosen the mortgage that is best for you, taking into consideration interest rates, initial monthly payments and more, you can then either apply directly or through a mortgage broker.
Advantages of a 70% LTV mortgage
There are a number of benefits that can come from a 70% LTV mortgage. First and foremost, you will likely be able to access better interest rates from lenders than if you had a higher LTV.
The higher your initial deposit, the quicker you may be able to pay off your mortgage. You may also have the option of smaller monthly repayments, since you are borrowing less.
And if you have bad credit, a larger deposit, such as the 30% deposit required for 70% LTV, may mean you have a better chance at a successful mortgage application.
Disadvantages of a 70% LTV mortgage
While not as high as the deposit required for a 50% LTV mortgage, a 30% deposit can still be a lot of money depending on the value of the property you are looking to buy.
It can be risky to spend all of your savings on a deposit, as you may need to make improvements to the property or have money in reserve for emergencies. Therefore you should only opt for a 70% LTV mortgage if you can comfortably afford that level of deposit.
If you cannot afford a 30% deposit, don’t worry – a 20% deposit, i.e. an 80% LTV mortgage, is still seen as a strong application. And some providers will even consider mortgages with a deposit as low as 5%.
70% LTV Mortgages FAQ
What is a 70% LTV mortgage?
Loan-to-value (LTV) is the ratio used to help you determine how much you can borrow as a proportion of the property you wish to purchase on a mortgage. With an LTV of 70%, your mortgage effectively covers that much of the value, while the remaining 30% is covered by the deposit you provide.
Is it normal to have a 70% LTV mortgage?
Many lenders expect a borrower to be in a position to pay at least 20% of their property’s value as an upfront deposit. A 70% LTV mortgage means that you have a deposit worth 30% of the property’s value.
Is a 70% LTV mortgage good?
The lower your LTV on a mortgage, the less risky it is for your provider. If you can reduce risk for your provider, they will be inclined to charge a lower rate of monthly interest, helping reduce the overall cost of your mortgage.
What is an interest-only mortgage?
With interest-only mortgages you agree to only pay interest each month for the duration of your mortgage term. When it expires, you are required to pay the full cost of your loan as a single lump sum.
Why does higher interest matter on a mortgage?
As part of any mortgage repayment plan, not only do you need to repay the capital that you have borrowed, but you also need to pay interest on the sum you have borrowed. When you’re talking about the value of a house, even a low interest rate of a few percent can add up to a lot.
What’s the difference between residential and buy-to-let mortgages?
Both types are some of the most common mortgages requested from lenders. Buy-to-let mortgages with 70% LTV are aimed at borrowers wishing to buy a property with the intention of renting it out. Residential mortgages are simply sought by those wishing to occupy the property themselves.
Is a good credit score important on a 70% LTV mortgage?
A good credit score is important when seeking any type of loan, including mortgages. The higher your score, the greater access you have to mortgage products with lower rates of interest and more favourable terms. Low scores denote higher risk, so costs will be higher in order to compensate.
What happens if I default on a 70% LTV mortgage?
Defaulting on monthly repayments of your 70% LTV mortgage is a serious financial matter and could result in your property being repossessed in order to repay the debt you owe. Your credit score will be downgraded as a result of defaulting, and lenders will view you as less creditworthy.
Can I repay my 70% LTV mortgage earlier than planned?
Yes, many borrowers might wish to do so if cash flow allows. It is important to note that early repayment charges may apply, but some providers allow early repayment of a specific percentage of your mortgage each year before such charges take effect. Always check the terms and conditions with each provider.
Where can I compare 70% LTV mortgages?
NerdWallet provides an extensive comparison tool, allowing you to look at the wide variety of 70% LTV mortgages on the market.
Are there other LTV mortgages available to me?
You are by no means limited to a 70% LTV mortgage. Lenders offer mortgages with LTV as high as 95%, meaning you would need a deposit of just 5%.
Even if you have a 30% deposit, you should consider whether that is the best option for your financial situation. It is wise to leave some savings in reserve for any home improvements or emergencies that may arise with your new property.
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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