75% LTV mortgages (25% deposit)

A 75% LTV mortgage means you’re borrowing 75% of the property’s purchase price, leaving a 25% deposit to cover the rest. For many home buyers, that deposit level can be a practical stepping stone—particularly if a larger deposit isn’t achievable.

This guide explains what 75% LTV mortgages are, how they work in practice, the types of repayment options you may see, and the factors lenders commonly consider.

What does “75% LTV” mean?

LTV stands for Loan-to-Value. It compares the size of the mortgage loan to the value of the property.

• 75% LTV = mortgage borrowing of 75% of the property value
• 25% deposit = deposit of 25% of the property value

Example

If you’re buying a home for £350,000:

• 75% LTV borrowing would be £262,500
• your deposit would be £87,500

How 75% LTV mortgages work

A 75% LTV mortgage works like other residential mortgages: you borrow money to buy a property and the lender takes security over the home. Your repayments are made over the agreed term, and the interest rate determines how much you pay for borrowing.

Repayment balance over time

On a repayment mortgage, in the early years a larger share of your monthly payment typically goes towards interest, with a smaller portion reducing the capital you owe. Over time, as your balance falls, more of each payment usually reduces the loan.

Repayment types you may come across

When looking at 75% LTV mortgages, you’ll generally see two main repayment structures.

Repayment mortgages

With a repayment mortgage, your monthly payment covers both:

• interest (the cost of borrowing)
• capital (the amount you borrowed)

This means the mortgage balance is designed to reduce to zero by the end of the term.

Interest-only mortgages

With an interest-only mortgage, your monthly payments cover interest only, and the original loan amount remains outstanding. You would need a separate plan to repay the capital at the end of the mortgage term.

Interest-only options are not always available for every borrower or every property type, and lenders typically apply stricter requirements.

Common interest rate options

The interest rate structure can affect how your payments behave over time.

Fixed-rate mortgages

A fixed-rate mortgage keeps the interest rate the same for an agreed period (often a number of years). This can help with budgeting because your monthly payment is usually more predictable during the fixed period.

Tracker mortgages

A tracker mortgage is linked to a reference rate. When the reference rate changes, the mortgage rate can change too.

Discounted variable-rate mortgages

A discount is applied to the lender’s standard variable rate (SVR) for a set period. After the discount ends, the mortgage typically reverts to the lender’s SVR.

Standard variable-rate (SVR)

An SVR mortgage has an interest rate set by the lender and can change over time. Many borrowers prefer not to rely on SVR for the long term because it can move without the same structure as fixed or tracker deals.

What lenders typically look at for a 75% LTV mortgage

A 75% LTV mortgage doesn’t automatically mean you’ll be accepted—lenders still assess affordability and risk. While criteria vary, the following are commonly considered.

Credit history

Lenders review your credit record to understand how you’ve managed borrowing in the past. A stronger credit history can support access to a wider range of deals, while a weaker history may lead to higher rates or reduced options.

Affordability and stress testing

Lenders assess your income and outgoings to determine whether you can afford the mortgage payments. They also typically test affordability under more challenging conditions (for example, higher interest rates).

Employment and income stability

Steady employment and reliable income are usually viewed more favourably. If your income is variable (for example, commission or self-employed earnings), lenders may require additional evidence and may apply different calculations.

Deposit and overall affordability

To proceed with a 75% LTV mortgage, you’ll need the 25% deposit available. Lenders may also consider whether you have sufficient funds for other purchase-related costs.

The application process for a 25% deposit mortgage

Applying for a 75% LTV mortgage generally follows the same broad stages as other residential mortgages.

1) Work out what you can borrow

Before you start viewing properties, it helps to estimate your borrowing capacity and monthly payments. This can also highlight whether the mortgage amount you want aligns with your budget.

It’s also important to factor in costs beyond the deposit, such as legal fees and stamp duty, as well as moving and ongoing home costs.

2) Get a mortgage in principle

A mortgage in principle (sometimes called an agreement in principle) provides an indication of how much a lender may be willing to lend based on the information you provide. It can help you move forward with confidence when making an offer.

3) Find the property and make an offer

Once you’ve identified a suitable property, the purchase price and your deposit amount determine the mortgage size you’ll need. Your offer should reflect both the property cost and the funds available for deposit and other expenses.

4) Submit the full mortgage application

After your offer is accepted, the lender will carry out more detailed checks. This typically includes confirming your income and outgoings, reviewing your credit history, and arranging a property valuation.

5) Completion and starting repayments

After the mortgage offer is issued and the purchase completes, you’ll begin making repayments according to the mortgage terms.

75% LTV mortgages and first-time buyers

Many first-time buyers consider a 25% deposit because it can offer more mortgage options than lower-deposit routes. However, eligibility still depends on lender criteria, including affordability, credit history, and the details of your income.

75% LTV mortgages for self-employed borrowers

Self-employed applicants may be able to access 75% LTV mortgages, but lenders often require additional documentation and may assess income differently to reflect variability.

If you’re self-employed, it can be helpful to prepare evidence of earnings and understand how your accounts and tax information are likely to be considered.

Is 25% a good deposit?

A 25% deposit is often seen as a reasonable balance between affordability and mortgage flexibility. That said, what matters most is whether the overall package works for you—monthly payments, total costs, and whether the mortgage amount aligns with lender affordability assessments.

Key points to remember

• 75% LTV means a 25% deposit and borrowing 75% of the property value.
• Repayment mortgages are the most common structure; interest-only may be more restricted and requires a clear plan to repay the capital at the end of the term.
• Lenders focus on affordability, credit history, and income stability, not just deposit size.
• The process typically includes affordability checks, a mortgage in principle, a full application, valuation, and completion.

75% LTV mortgages: common questions

Who is eligible for a 75% LTV mortgage?

Eligibility depends on lender criteria, but most lenders consider credit history, affordability (including stress testing), and employment/income type. You’ll also need the deposit required for a 75% LTV purchase.

Can I get a 75% LTV mortgage if I’m a first-time buyer?

Yes, first-time buyers can often apply for 75% LTV mortgages. Acceptance still depends on affordability and lender criteria.

Can self-employed applicants get a 75% LTV mortgage?

Self-employed borrowers may be able to access 75% LTV mortgages, but lenders may require additional evidence and may assess income differently.

Are interest-only 75% LTV mortgages available?

Interest-only options may be available in some circumstances, but they are typically subject to stricter requirements and a clear plan to repay the capital at the end of the term.