70% LTV mortgages (30% deposit)

A 70% loan-to-value (LTV) mortgage is one way to buy with a larger deposit than the high-LTV options. In practical terms, it means you’re borrowing 70% of the property’s purchase price and putting down 30%.

This guide explains what 70% LTV means, how these mortgages work, what to consider before you commit, and the key factors that can affect whether a lender will lend.

What does 70% LTV mean?

LTV (loan-to-value) compares the size of your mortgage to the value of the property.

• 70% LTV = mortgage covers 70% of the purchase price
• 30% deposit = you provide the remaining 30% from your own funds

Example

If you buy a home for £300,000 with a 70% LTV mortgage:

• Mortgage: £210,000
• Deposit: £90,000

How 70% LTV mortgages work

A 70% LTV mortgage is structured like most other residential mortgages:

• The loan is secured against the property.
• You make monthly repayments under a repayment or interest-only arrangement (depending on the product).
• With a repayment mortgage, your balance reduces over time.
• With an interest-only mortgage, the interest is paid monthly and the original loan amount is typically repaid at the end of the term.

Because you’re borrowing less relative to the property value, a 70% LTV position is generally considered lower risk than higher LTV lending. This can affect the range of products available to you.

Is 70% LTV a good option?

For many buyers, 70% LTV can be a sensible middle ground: it often offers access to mainstream mortgage products while still requiring a meaningful deposit.

Potential advantages

• Lower borrowing risk for lenders: A larger deposit can support more competitive product availability.
• Less interest paid than higher LTV options: Borrowing less can reduce the total interest cost over the term (all else being equal).
• A clearer path to equity: You start with more equity in the property from day one.

Common trade-offs

• You need a 30% deposit: For many people, saving 30% is the biggest hurdle.
• Cashflow and flexibility: Putting most of your savings into the deposit can leave less room for unexpected costs.
• Buying costs still apply: Even with a larger deposit, you’ll still need to budget for the additional expenses of buying.

Repayment vs interest-only at 70% LTV

At 70% LTV, you may see both repayment and interest-only options, though availability can vary by lender and product.

Repayment mortgages

• Your monthly payment covers interest plus a portion of the balance.
• Over time, you reduce what you owe.
• You’re working towards owning the home outright at the end of the term.

Interest-only mortgages

• Your monthly payment covers interest only.
• The mortgage balance typically needs to be repaid in full at the end of the term.
• This requires a credible plan for how the capital will be repaid.

Interest-only mortgages can be suitable for some borrowers, but they require careful planning because the capital repayment is not built into the monthly payments.

What lenders typically look at for 70% LTV

Even with a 30% deposit, lenders still assess whether the mortgage fits your circumstances. While criteria vary, common areas include:

1) Affordability

Lenders consider whether you can make the repayments comfortably based on your income and outgoings. They may also apply stress testing to understand how you’d cope if interest rates rise.

2) Credit history

Your credit profile can affect both whether you’re accepted and the type of product you can access.

3) Employment and income stability

Lenders generally prefer stable, verifiable income. If you’re self-employed, they may look at accounts and trading history.

4) Deposit source and documentation

A 70% LTV mortgage requires a deposit of 30%. Lenders may ask for evidence of funds and may have rules on how the deposit is sourced.

5) Property and valuation

The property must meet the lender’s requirements and pass valuation. If the valuation comes in lower than expected, it can affect the LTV calculation and the mortgage amount.

Budgeting for the full cost of buying

A common mistake is focusing only on the deposit. Alongside your 30% deposit, you’ll likely need to plan for other buying costs such as:

• solicitor and conveyancing fees
• survey and valuation-related costs
• stamp duty (where applicable)
• moving and setup costs

If you’re stretching to reach a 30% deposit, it’s worth considering whether you’ll still have enough funds for these expenses and for short-term contingencies.

FAQs about 70% LTV mortgages

Can first-time buyers get a 70% LTV mortgage?

Yes. First-time buyers can often access 70% LTV mortgages if they can provide the required deposit and meet the lender’s affordability and credit requirements.

Can I get a 70% LTV mortgage if I’m self-employed?

It may be possible, provided you meet the lender’s criteria. Self-employed applicants usually need to provide evidence of income and may be assessed differently depending on how long they’ve been trading.

Is 70% LTV better than higher LTV options?

It can be, mainly because you’re borrowing less and starting with more equity. However, “better” depends on your priorities—such as how quickly you want to buy, your savings, and your monthly budget.

What if I don’t want to put down 30%?

If a 30% deposit isn’t realistic, you may consider higher LTV options. These can reduce the upfront deposit requirement, but they may come with different pricing and product availability.

External guidance

For general information on mortgages and buying a home, you can also visit:

• https://www.moneyhelper.org.uk/en/housing-buying-a-home/mortgages
• https://www.gov.uk/browse/housing-local-services/house-buying