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Mortgage Advisor & Director
Some people are in a position to apply for a 50% LTV mortgage, and if you’re one of them, you might find yourself in a strong position. Low LTVs are attractive to lenders, and here, you'll learn why, how to get the best deal and more.
What is a 50% LTV mortgage?
A 50% loan-to-value (LTV) mortgage is a mortgage that covers exactly half of a property’s market value. The other 50% would come from the borrower’s deposit or existing equity.
For example, if you were buying or remortgaging a property priced at £200k and have £100k in deposit funds or existing equity, your loan-to-value ratio would be 50%.
Whether you are buying or refinancing a residential home or an investment property, 50% LTV will put you in good stead to land the best rates on the market. The more deposit you can put down, the more lenders, rates and deals you will have to choose from.
What are the benefits of putting down this much deposit?
An LTV of 50% would mean you are applying for a large deposit mortgage, and they are usually low risk agreements for lenders. This means they may offer you incentives, such as:
- Lower mortgage rates
- Flexible features, such as the option to make more overpayments
- More product choice, including longer fixed-rates and interest-only deals
- Borrowing more (potentially 5-6 times salary)
- Get approved with bad credit and limited trading history (self-employed)
Not all lenders offer these incentives and some offer more favourable rates than others. The best way to secure the lowest rate and the best incentives is to speak to a mortgage broker, as they will be able to search the entire market for the ideal mortgage for your needs.
What interest rate to expect
The interest rates available at 50% LTV are no different than they are at 60-65% LTV as this is typically where “large deposit” territory begins. All lenders offer their best rates to borrowers within this ratio, but the rates don’t get any lower from there.
This is true of both residential mortgages and buy-to-let agreements, but there are incentives to put down that 10-15% extra deposit if you are in a position to. For one, you will pay off your mortgage sooner and your repayments will obviously be lower if you borrow less.
Current rates available
Mortgage lenders’ best interest rates kick in at 60-65% LTV, so with 50% LTV you will more than qualify for them, assuming you fulfil the rest of their eligibility requirements.
The table below shows examples of the current rates available with a high deposit:
|
Mortgage Lender |
Rates at 50% LTV |
Products Available |
|
4.09% to 6.14% |
2, 3, 5 and 10-year fixes & 2-year tracker mortgages |
|
|
4.17% to 5.68% |
2 and 5-year fixes & 2-year tracker mortgages |
|
|
4.04% to 6.24% |
2, 3, 5 and 10-year fixes & 2-year tracker mortgages |
|
|
4.19% to 5.39% |
2 and 5-year fixes & 2-year tracker mortgages |
These rates were sourced in December 2024 but can change at any time
How to compare 50% LTV mortgage rates
You can compare rates on 50% deposit mortgages for free on Teito and choose the deal you want online. After you have made your selection, one of our brokers will be in touch to offer bespoke advice about your application and make sure it all goes smoothly. Get started below:
Compare 50% LTV mortgage rates and deals
50% LTV buy-to-let mortgage deals
A deposit of 50% will more than suffice for a buy-to-let mortgage and will open you up to a wide range of products. Like with residential mortgages, rates don’t get any lower than they are at the 60-65% range, so you should have access to favourable deals too.
At the time of writing (February 2024), rates on buy-to-let mortgages for borrowers with deposits this high start at around 4%, with longer-term fixed rate deals among the cheapest. Tracker mortgages can be more expensive, with rates reaching 6-7%.
In addition to regular buy-to-let mortgages, you would also have enough deposit to qualify for specialist types of investment mortgage with a 50% LTV. These include:
Calculate the repayments on a 50% LTV mortgage
To work out how much your mortgage will cost each month, first deduct your 50% deposit from the property’s value and enter the resulting figure into our calculator below. Input a term length interest rate and repayment type and the tool will do the rest.
Why choose Teito for your mortgage needs?
You can compare rates on 50% LTV mortgages for free on Teito and access support from a broker who specialises in high deposit mortgages, if you need a little help.
Here are just some of the reasons why our customers choose us:
- You can view rates from 90+ lenders in seconds
- We can access exclusive deals for borrowers with large deposits
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and deals and take advantage of a free, no-obligation chat with an advisor who specialises in high deposit mortgages? Get started here.
FAQs
Yes. 50-60% LTV is low enough to offset the risk posed by most types of bad credit and ensure you have mortgage options. However, your chances of approval and securing a favourable interest rate might still be affected if your credit issues are very severe (bankruptcies, repossessions etc), or they occurred within the last 1-3 years.
Read more about bad credit mortgages in our standalone guide.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.