65% LTV mortgages

Compare 65% LTV mortgage rates and find out everything you need to know about buying a house with a 35% deposit.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Compare our best 65% LTV mortgage deals

65% LTV mortgages come with some of the lowest rates you can get. If you put down a 35% deposit, you could pay less each month and over the life of your mortgage.

Your loan to value is 65.00%

What is a 65% LTV mortgage?

A 65% Loan-to-Value (LTV) mortgage is a  home loan that covers 65% of the purchase price of the property you’re buying. To complete the purchase, you will need to provide the remaining 35% as a deposit from your own funds. 

LTV is the ratio of the size of your loan 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.

Interest rates are offered on a sliding scale, and the lower the LTV, the lower the interest rate you’ll be charged. This is because it is less risky for the lender when you own more equity in the property.

How do 65% LTV mortgages work?

65% mortgages work by lending you 65% of the property’s purchase price, leaving you to make up the remaining 35%. This will be in the form of a deposit if you’re a first-time buyer or could be from the equity in your property if you’re remortgaging

For example, if you want to buy a new home worth £250,000 with a 65% LTV mortgage, you’ll borrow £162,500 (65%) and need a deposit of £87,500 (35%) to complete the purchase.

This means you will own 35% of the equity in your home outright, and the rest you will pay back to your lender over the term of your mortgage. Every month, you will repay a small amount of the loan balance and the interest you’ve been charged.

By having a 65% mortgage, you will have a smaller balance to pay back compared to a higher LTV loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Can I get a 65% LTV remortgage?

It is possible to remortgage at a 65% LTV rate, and it could be an attractive option if you want to reduce your monthly payments or access some of your equity.

65% LTV remortgage deals are widely available, but whether or not you can get one depends on the lender’s eligibility criteria. Your ability to remortgage will depend on:

  • Your credit score: Lenders use this score to assess your creditworthiness; the better your score, the more likely you will get approved. Some lenders will still lend to you if your score is low, but they may offer you a higher interest rate.

  • Your finances: Lenders need to be confident you can comfortably keep up with your new mortgage repayments. To do that, they look at your income, expenditure, employment status, and outstanding debts.

  • Your property value: Your remortgage will need to be 65% of the property’s current value. That means how much your home is worth will influence if you can remortgage onto a 65% deal. 

  • Your current mortgage: When you remortgage, you pay off your existing mortgage and could face early repayment charges if you're in a fixed term. Make sure you understand any fees you might face before you apply.

If you’re unsure whether you can remortgage onto a 65% deal, speak to a mortgage broker first. They can discuss your options and help you find deals that work for you.

Is 65% a good LTV?

65% is considered a low LTV, and mortgages at this loan-to-value ratio come with some of the lowest interest rates available.

Therefore, if you can afford a 35% deposit, a mortgage at 65% LTV could be a good option. However, it might not be the right choice for everybody - here’s a breakdown of the pros and cons of a 65% LTV mortgage:

Pros of 65% LTV mortgages

  • A low LTV ratio, like 65%, usually means you can get better rates

  • Your loan will be smaller than a higher LTV mortgage, so you’ll pay less interest overall

  • Your large deposit means you’re less likely to fall into negative equity, which is when the outstanding mortgage balance is higher than the market value of your property

Cons of 65% LTV mortgages

  • If you tie all of your savings up in your home, you won’t have access to them in an emergency 

  • Saving up a 35% deposit can take a long time and delay you getting on to the property ladder

  • To get the very lowest interest rates, you need to save at least another 5% to access 60% LTV mortgage deals

Our expert says…

“65% LTV mortgages come with some of the lowest interest rates on the market, so if you can afford the 35% deposit, they could be a great way to pay less on your repayments

“Always remember the extra costs of moving home. Things like stamp duty and solicitors fees can mount up, so don’t leave yourself short by putting too much towards your deposit. Speak to one of our expert brokers today to find the right 65% LTV mortgage for you.”

Jon Bone \ CeMAP-qualified mortgage adviser

65% LTV mortgage FAQs

Having a lower LTV and a large deposit can help you get a mortgage if you have poor credit. However, whether or not you can get a mortgage will depend on the lender's specific lending criteria. 

Lenders will see you as a lower risk if you have a big deposit and more equity in your property. This is because their loan will cover a smaller amount of the property’s value, so if you fall behind on your repayments, there is less risk they will be unable to recoup their money. 

However, providing a 35% deposit is no guarantee that you’ll be accepted. Always try to improve your credit before starting a mortgage application to reduce the risk of rejection. Talk to a broker who can discuss your options and help you find a mortgage suited to your situation.

Getting a 65% mortgage as a first-time buyer is possible, and a 35% deposit could mean getting better interest rates and mortgage terms. 

As a first-time buyer, your deposit will have to come from your own funds, and saving up 35% of the value of the property you want to buy can be difficult.

Remember that having a large deposit doesn’t guarantee your eligibility. Lenders will look at things like your credit history, affordability and employment status when deciding to give you a loan.

Having as low an LTV as possible is an attractive option if you can afford it, but it might not be the right option for everybody. 

Here are a few reasons you might want to get a low LTV mortgage:

  • Lower interest rates and lower monthly payments

  • Paying less interest over the term of the mortgage

  • Less chance of falling into negative equity

  • Option to pay off your mortgage faster

  • Can make you more attractive to lenders

On the other hand, building up 35% could delay you getting onto the property ladder. If you’re currently renting, buying sooner with a higher LTV mortgage could work out cheaper in the long run.

A high deposit also means you might risk committing all your savings and tying them up in your property. That means you won’t be able to access them in an emergency or for things like home renovations.

You can get most mortgage types at 65% LTV, including:

  • Repayment: This is the most common mortgage type where you pay off a small amount of the balance and the interest each month. You will have cleared your loan and own your property outright at the end of your term.

  • Interest-only: With interest-only mortgages, you only pay off the interest each month and don’t clear any of the balance. This means you’ll need to pay back the balance in one lump sum at the end of the term.

  • Fixed-rate mortgages: These fix the rate of interest you pay for a set period, typically between 2 and 5 years. Having a rate that doesn’t change means your monthly payments will stay the same, even during times of fluctuation in the mortgage market. 

  • Variable-rate mortgages: This type of mortgage has a rate that can fluctuate, often based on the Bank of England base rate or other market changes. There are several types of variable-rate mortgages, including discount mortgages and tracker mortgages.

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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.