Compare 80% LTV Mortgages

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About 80% LTV Mortgages

An 80% LTV buy-to-let mortgage means you need a deposit of 20% of the value of the investment property. To find 80% LTV buy-to-let mortgages, just select the button above, answer a few questions and compare rates, fees and features 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

Information written by Connor Campbell Last updated on 08 February 2022.

Types of 80% LTV mortgages

When comparing 80% LTV mortgages, one of the big factors to weigh up is which type of mortgage rate you want. You will normally be able to find 80% LTV mortgages with the following rates:

Fixed mortgage rates

With a fixed rate mortgage, you will pay exactly the same amount each month towards your mortgage for the length of the deal period specified. This is because a fixed mortgage rate is decided at the outset of your mortgage, with the interest rate locked in place for a specified number of years.

Fixed rates are normally an introductory offer and will usually last between two and five years, depending on the mortgage and lender.

Standard variable rates

A standard variable rate mortgage will see the interest you pay each month, and therefore the cost of your monthly repayments, go up and down depending on wider interest rate movements and the discretion of your lender.

You will also usually be put on this rate once your introductory rate has expired.

Discounted mortgage rates

A discounted mortgage rate is normally a reduced version of the lender’s standard variable rate. This means the amount of interest you pay monthly will vary.

As with fixed rate mortgages, discounted mortgage rates tend to be introductory offers, which expire after a set period of time.

Tracker mortgage rates

A tracker rate is another form of variable mortgage rate. It is usually fixed at a percentage above the Bank of England’s base rate, so when the base rate moves, so too will your mortgage repayments.

Tracker rates are usually introductory rates, which only last a few years.

Is 80% LTV good?

A ‘good’ LTV number will depend on your personal circumstances and will vary from borrower to borrower. After all, you can find mortgages with an LTV as high as 95%.

However, if you are applying for a standard residential mortgage, then an 80% LTV is a good starting place. It may even be the maximum LTV for certain lenders.

It is worth noting that some of the more favourable mortgage rates may be unlocked with a higher deposit. Therefore, if you can save extra it may be beneficial to your long-term finances.

Can I get a mortgage with a 20% deposit?

A 20% deposit is a fantastic starting point when applying for a mortgage. However, that alone will not guarantee that your application is successful. You will also need to pass the lender’s other criteria.

This can include, but is not limited to, passing credit and affordability checks, proving that your deposit has come from an approved source, and being within the minimum and maximum age requirements. This is on top of promptly supplying the lender with all the documentation it needs.

How to choose the best 80% mortgage for me?

NerdWallet’s mortgage comparison tool has been designed with the express purpose of helping you find a mortgage to meet needs and finances. All you need to do is follow a few simple steps:

1 Answer a series of short questions covering what you are looking for in a new mortgage. 2 Let the mortgage comparison tool search the mortgage market for you. 3 Compare the tailored results, including interest rates and initial monthly payments. 4 Select the mortgage that best matches what you want. 5 Apply directly or through a mortgage broker, depending on the lender or speak to an adviser.

What are the benefits of an 80% LTV mortgage?

There are a number of benefits to consider when weighing up whether or not to apply for an 80% LTV mortgage. This is especially true if you are a first-time buyer, and are also looking at 95% LTV mortgages.

The larger your deposit, the smaller your monthly repayments will be. So in this instance, an 80% LTV mortgage would likely cost you less each month than the 85%, 90% or 95% equivalent.

Similarly, the bigger your deposit, the more choice you will have when it comes to competitive interest rates. This is because you are seen as less of a risk by lenders.

You would also be in less danger of falling into negative equity with an 80% LTV mortgage.

What are the disadvantages of an 80% LTV mortgage?

One of the main disadvantages of an 80% LTV mortgage is that it requires you to supply 20% of the value of the property you want to buy as a deposit.

For example, if the property cost £200,000, you would need a deposit of £40,000. At £300,000, you would need £60,000, and at £500,000 it would be £100,000.

If you do have a deposit worth 20% of the property you are looking to purchase, it may be worth trying to get to 25%. This is because some of the more attractive mortgage rates start at an LTV of 75%.

80% LTV Mortgages FAQ

What is an 80% LTV mortgage?

LTV (loan to value) is a metric used by lenders to indicate the proportion of a property’s value that they can finance in the form of a mortgage. An LTV of 80% means four-fifths of the property’s value is covered by the loan.

How large is the deposit on an 80% LTV mortgage?

While the monetary value of a deposit will vary from mortgage to mortgage, having an LTV of 80% would mean having a deposit worth 20% of a property’s value.

What does LTV mean?

LTV stands for loan-to-value ratio. It is the amount of money you provide as a deposit versus the amount you borrow in the form of a mortgage when buying a property.

For example, if you had a deposit of £40,000, and a mortgage worth £160,000, for a property valued at £200,000, your loan-to-value ratio would be 80%.

The calculation would be expressed as: ((Property Price – Deposit) ÷ Property Price) x 100

Can I get a 80% LTV buy-to-let mortgage?

Yes, it is possible to apply for an 80% LTV buy-to-let mortgage. However, the minimum deposit requirements can vary significantly depending on the lender.

For some lenders, the minimum deposit will be 25%, i.e. 75% LTV, though it can range anywhere from 5% to 40%. Therefore to successfully apply for an 80% LTV buy-to-let mortgage, you would need to find a lender that has a minimum deposit requirement of 20% or less.

What are the alternatives to an 80% LTV mortgage?

There are a number of different alternatives to an 80% LTV mortgage. You can apply for a mortgage with a deposit as small as 5%, i.e. a 95% LTV mortgage, as well as mortgages with LTVs of 85% or 90%.

At the other end of the spectrum, if you have a deposit worth 25% or more of the property you intend to buy, you may be able to unlock more attractive interest rates. This would continue to be the case the larger your deposit, for example a 30% deposit or a 40% deposit.

Does a higher LTV keep costs lower?

No, is the short answer. Higher LTVs denote larger mortgage loans and smaller deposits to save up for. This can seem as if it reduces costs, but a larger loan will entail having to pay higher interest, as providers are keen to mitigate risk.

How do I keep interest rates low?

Finding a low rate fixed-rate deal is one way to keep interest payments fixed for a limited time. Terms can last up to five years, and you will find interest payments stay constant even if market rates rise, however, if they drop, you will not benefit from lower interest rates.

What is a variable rate mortgage?

Variable rate deals mean you can expect interest to fluctuate depending on the direction of market rates. This can make mortgage costs much more volatile, so you need to factor this volatility into your budget if you intend to opt for such a deal.

Where can I find the best 80% LTV mortgages?

NerdWallet’s quick and easy mortgage comparison tool will help you find the right mortgage for you. Answer a few short questions and it will search the market for you, only showing the results relevant to your needs.

What is APRC?

Annual percentage rate of charge, or APRC, is a metric that includes interest, plus additional fees and charges, to give you a realistic idea of the actual costs associated with a particular mortgage product in comparison to another. You will find this next to the mortgages listed on NerdWallet’s comparison tables to help you compare one product to another, as they can have different additional charges beyond interest.

What is overpayment?

Overpayment is a mechanism by which borrowers can repay parts of their loan ahead of time if they have additional cash flow. This reduces the amount of the loan left to pay in the future, which can ultimately help reduce the costs of a mortgage in the long run. However, you must always check the lender’s overpayment limits, if you exceed these you may incur significant early repayment charges.

Why is it important to find a good rate of interest?

Finding a good rate of interest on your mortgage matters because you will have to repay your loan over a number of years. If the rate is too high, your mortgage could become unaffordable, risking your creditworthiness if you don’t meet repayments.

What if I worry about affordability on a mortgage?

If you have concerns about affordability before applying for a mortgage, using NerdWallet’s Mortgage Calculator will help determine what size of mortgage you can afford. If you are already in the process of repaying when concerns arise, notify your provider as soon as possible, to find a possible solution.

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

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.

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