60% LTV mortgages
Compare 60% LTV mortgage rates to find the right deal. Learn everything you need to know about buying a house with a 40% deposit.
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Buying a home with a 60% LTV mortgage can mean accessing some of the lowest rates available. By putting down a 40% deposit, you could get competitive rates because you’ll borrow less. Your home may be repossessed if you do not keep up repayments on your mortgage.
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What is a 60% LTV mortgage?
A 60% Loan-to-Value (LTV) mortgage is a loan used to cover 60% of the value of the property you’re buying or remortgaging. It means you will need to provide the remaining 40% as a deposit.
Loan-to-Value (LTV) is the ratio of the amount you want to borrow to the property's value, expressed as a percentage. If you’re a first-time buyer, your deposit is the amount of the property value you’re not borrowing.
For example, if you want to buy a new home worth £300,000 with a 60% LTV mortgage, you’ll borrow £180,000. You’ll then need to put down £120,000 (40% of the property value) of your own money to cover the rest.
As a general rule, the more deposit you can put down, the better mortgage rate you can get. That’s because the risk is reduced for the lender if the property's value falls.
How do 60% LTV mortgages work?
60% mortgages work the same way as other mortgages; the only difference is the deposit you put down will be higher.
You will own more equity from the outset by providing 40% of the property value yourself. This gives the lender more security as it is more likely that they’ll get their money back if you cannot make your repayments.
As a result, mortgage lenders offer their lowest interest rates to homebuyers who can contribute a large deposit.
However, the interest rate offered on a 60% mortgage will still be influenced by your credit score, affordability, employment history, and external market conditions.
Can I get a 60% LTV remortgage?
60% LTV remortgage rates are widely available, and they can be an attractive option if you’re looking for a lower interest rate or to access some of your equity.
Whether or not you’re eligible to remortgage on a 60% deal will depend on several factors, including:
Your credit score: You'll need a good credit score to get a 60% LTV remortgage. Lenders use this score to assess your creditworthiness. The better your score, the more likely you will get approved.
Your personal finances: Lenders will also consider your income, expenditure, employment status, and outstanding debts. They do this to ensure you can comfortably afford the new mortgage repayments.
Your property value: This will determine how much your remortgage will be. Your new loan amount will need to be 60% of the property’s current value; for example, if it is valued at £400,000, you can borrow £240,000 to leave 40% in equity.
Your existing mortgage: When you remortgage, you will need to pay off your existing mortgage, and you could face early repayment charges as part of the process. Make sure you know the terms and conditions of your current mortgage before you start.
It’s always worth discussing your options with a mortgage broker if you want to remortgage. Our expert advisors can help you find a 60% LTV remortgage and guide you through the process.
How to get a 60% LTV mortgage
Our expert says…
“If you can afford to, putting down a 40% deposit towards your property purchase is a very savvy move. It means you’ll get favourable rates from your mortgage lender and have a smaller mortgage to pay back.
“It’s important not to use all of your savings towards your mortgage deposit, but hold some back as a safety net. If you want to find the right 60% LTV mortgage, speak to one of our expert brokers today.”
60% LTV mortgage FAQs
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Important info & marketing claims
You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
*The savings figure of £506 is based on Better.co.uk remortgage customers in December 2023. Read more on our marketing claims page.
We can't always guarantee we will be able to help you with your mortgage application depending on your credit history and circumstances.
Average mortgage decision and approval times are based on Better.co.uk's historic data for lenders we submit applications to.
Tracker rates are identified after comparing over 12,000 mortgage products from over 100 mortgage lenders.
As of January 2023, Better.co.uk has access to over 100 lenders. This number is subject to change.
For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.