80% LTV Mortgages

Looking for an 80% LTV mortgage? You’re in the right place! Here, you’ll learn how they work, how to compare rates, and how we can help you get the best deal.

What is an 80% LTV mortgage?

An 80% LTV mortgage is a mortgage with a loan-to-value ratio of 80%, which means it would cover this percentage of the property’s value. If you were buying a house with a mortgage at this LTV, you would need to put down 20% deposit and borrow the rest from a lender.

If you are remortgaging at this LTV ratio, this would mean that you hold 20% equity in your home which can serve as the deposit, enough to grant you access to a range of deals.

Example: If you were buying or remortgaging a property valued at £200,000 with £40,000 deposit (or equity), your loan-to-value ratio would be 80%.

Is 80% LTV a good mortgage ratio?

It is above average in the UK residential market, as the median deposit amount is around 15% of the property’s value. This means the interest rates you have access to will be above average too, and you will meet the minimum deposit requirements at almost every lender.

However, 80% LTV would be considered relatively high if you are applying for a non-residential or specialist mortgage, such as a buy-to-let or commercial agreement, or an interest-only mortgage, as deposit requirements can be higher for these.

What interest rate to expect on an 80% LTV mortgage

At the time of writing (June 2024), interest rates on 80% LTV residential mortgages start at around 4.5%. The cheapest deals tend to be fixed-rate mortgages with an introductory rates period of 5 years or longer, while the most expensive are tracker mortgages. 

There are a range of deals available at this LTV and you can compare them for free on Teito. Not only can you choose the mortgage you want in real time, you can access support from a whole-of-market broker along the way. Select one of the options below to get started:

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Can you get an 80% LTV buy-to-let mortgage?

Yes but your options may be somewhat limited, especially among high street mortgage lenders. This is because the majority of buy-to-let mortgage providers set the maximum LTV at 75% (25% deposit). With an LTV of 80%, many of your options will be specialist lenders.

You can compare buy-to-let mortgage and remortgage rates for free on our service too.

Holiday lets and HMO mortgages

Deposit requirements for specialist property types such as holiday lets and houses of multiple occupancy (HMOs) generally have slightly higher deposit requirements than regular buy-to-let properties, with most lenders requesting the LTV to be 75% or lower.

There are, however, specialist lenders who will accept 15-20% deposit under the right circumstances, so 80% LTV is doable for these niche property types.

Commercial mortgage availability

It is possible to get an 80% LTV commercial mortgage but 20% would be considered a small deposit in this corner of the market. Commercial mortgages generally come with higher rates and deposit requirements, but a favourable deal is possible under the right circumstances.

Commercial lending is unregulated, which means lenders have the flexibility to review applications on a case-by-case basis, so even with the minimum amount of deposit, it can be possible to secure a favourable deal if you can convince them the investment is viable.

Your chances of getting approved for an 80% LTV commercial mortgage will improve if you:

• Have a track record in the industry you are investing in
• Can produce a solid business plan
• Apply through a broker who specialises in commercial mortgages

Calculate the repayments on an 80% LTV mortgage

To work out your mortgage repayments, deduct your 20% deposit from the property’s purchase price and enter this figure into our calculator below. Select a term length, interest rate and repayment type to find out how much your mortgage is likely to cost:

Why choose Teito for your mortgage needs?

You can compare rates and deals on 80% LTV mortgages for free on Teito and choose the one you want in real time. Our service also allows you to access support from a whole-of-market broker who can provide bespoke advice and guidance.

Here are just some of the reasons why our customer choose us:

• Exclusive 80% LTV mortgage deals are available
• It takes seconds to access rates from across the market
• We are 5-star rated on leading review websites
• You can secure an agreement in principle through us in minutes

Ready to access rates from 90+ lenders and take advantage of a free, no-obligation chat with a mortgage broker? Get started here.