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Welcome to our complete guide to 75% LTV mortgages. Here you will learn how these mortgages work, what rates to expect and how to get the best deal.
What is a 75% LTV mortgage?
A 75% LTV mortgage is a mortgage with a 75% loan-to-value ratio, which means it would cover this percentage of the property’s purchase price, with the deposit making up the rest.
If you were buying a property at 75% LTV, this would mean that you were paying a 25% deposit up front and borrowing the rest. Remortgages at this ratio work in the same way, but the homeowner’s existing equity (in this case 25%) can serve as the deposit.
Example: If you were buying or remortgaging a £200,000 property with £50,000 deposit/equity, your loan-to-value ratio would be 75%.
Is 75% a good loan-to-value ratio?
Yes. The lower your LTV, the better as this will reduce the amount of risk a mortgage lender would be taking on by offering you finance. The minimum amount of deposit you would need to get a mortgage in the UK is 5-10% of the property’s value, so 75% LTV is well above this.
It is also higher than the average deposit amount in the UK, which currently stands around the 15% mark. Residential mortgage lenders offer a range of favourable deals aimed at borrowers with this LTV, and it is also low enough to qualify for more specialist types of home finance, such as buy-to-let and commercial mortgages, as well as interest-only agreements.
What mortgage rate to expect with 75% LTV
At the time of writing (June 2024), interest rates on 75% LTV residential mortgages start at slightly above 4%. Fixed-rate deals with introductory rates periods of 5 years tend to have the lowest rates, while 2-year tracker mortgages have some of the highest.
You can compare rates and deals on 75% mortgages from across the market for free on Teito, choose one you like in real time and access support from a mortgage broker.
Choose one of the options below to get started:
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Buy-to-let mortgages with 75% LTV
It is possible to get a buy-to-let (BTL) mortgage from a range of different mortgage lenders with an LTV of 75%. Deposit requirements in this market generally range between 20-25% of the property’s value, so you should have options from high street and specialist lenders.
Holiday let mortgages
Holiday let mortgages are available at 75% LTV as lenders generally insist on a minimum deposit of 20-25% for this property type. Interest rates for holiday let mortgages are generally higher than for standard buy-to-let as lenders consider them higher risk, since many holiday properties might not generate rental income all year round.
There are, however, specialist lenders who fully understand the needs of holiday let landlords and offer bespoke mortgages for them - speak to a broker to access one.
Interest-only mortgages
You will be able to access a range of interest-only mortgages from lenders on the high street and specialist providers with 75% LTV. Interest-only mortgages tend to start with deposit requirements of 25% but the interest rate you will end up with will likely be no different.
Lenders who offer interest-only mortgages tend to have the same products available with this repayment type or capital repayment as the two options.
You can read more about this repayment option in our guide to interest-only mortgages.
Calculate your mortgage repayments
To calculate the repayments on a 75% LTV mortgage, deduct your 25% deposit from the property’s purchase price and enter the resulting figure into the calculator below, along with an interest rate, term length and repayment type to be served with some fast results.
Why choose Teito for your mortgage needs?
You can compare rates and deals on 75% LTV mortgages for free on Teito and take advantage of a free, no-obligation chat with one of our mortgage advisors.
Here are just some of the reasons why people choose our service:
- It takes seconds to access rates from 90+ lenders
- Exclusive 75% LTV mortgage deals are available
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to source your mortgage and get expert advice? Get started here.
FAQs
Yes. deposit requirements on commercial mortgages are usually 20-40% of the property’s purchase price, so you will have options at 75% LTV, assuming you are creditworthy.
See our guide to commercial mortgages for information about the eligibility criteria, interest rates and the application process for this type of business finance.
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.