85% LTV mortgages (15% deposit)

An 85% LTV mortgage is designed for homebuyers who can put down a 15% deposit but need to borrow the remaining 85% of the property’s purchase price.

For many buyers, it can be a practical stepping-stone onto the property ladder: you may be able to move sooner than if you were saving for a larger deposit, while still accessing a range of mortgage products.

What does 85% LTV mean?

LTV (loan-to-value) is the relationship between the amount you borrow and the value of the property.

• 85% LTV means the mortgage covers 85% of the purchase price.
• Your deposit covers the remaining 15%.

Example

If the property costs £340,000:

• 85% mortgage = £289,000
• 15% deposit = £51,000

The same principle applies whether you’re buying your first home, moving home, or remortgaging (where the “value” used by the lender is based on the property’s valuation and the new loan amount).

How 85% LTV mortgages work

With an 85% LTV mortgage, you typically:

1. Provide a deposit of 15% of the purchase price (or the equivalent in remortgaging scenarios, depending on lender rules).
2. Choose a mortgage product that fits your repayment approach and budget.
3. Meet the lender’s affordability checks and other eligibility requirements.

Repayment vs interest-only

• Repayment mortgages: your monthly payments cover both interest and a portion of the balance, so the loan is intended to be cleared by the end of the term.
• Interest-only mortgages: your monthly payments cover the interest only, with the original loan amount expected to be repaid at the end of the term (via a separate repayment strategy).

Mortgage term considerations

Your mortgage term affects your monthly payment and overall cost. Lenders may set limits based on factors such as age and affordability, and some will not offer terms that extend beyond retirement.

Is 85% LTV a good option?

85% LTV can be a sensible choice when 15% is the maximum deposit you can realistically manage.

In general terms, compared with higher LTV mortgages, 85% LTV may offer:

• More product availability
• Potentially more competitive pricing than very high LTV options

However, compared with lower LTV mortgages, it may still involve:

• Higher interest rates than you might see at lower LTV levels (for example, 75% or 60%)
• More total interest over the life of the mortgage if rates are higher

The “best” LTV is ultimately the one that balances monthly affordability, overall cost, and how quickly you can complete the purchase.

Pros and cons of 85% LTV mortgages

Pros

• You can buy sooner: a 15% deposit may be achievable sooner than saving for a larger deposit.
• A balance between deposit and borrowing: 85% LTV can sit between “low deposit” options and lower LTV options.
• Often a wider choice than the very top end of LTV: 85% LTV is a common target for many homebuyers.

Cons

• Rates may be higher than lower LTV deals: lenders often price risk differently based on deposit size.
• More interest overall: if the interest rate is higher than a lower LTV alternative, total borrowing costs may increase.
• More of your savings are tied up: putting down 15% means you may have less cash available for other home-buying costs.

A practical consideration is to avoid using all your savings for the deposit. Many buyers also need funds for costs such as legal fees, surveys, moving expenses, and stamp duty.

Can you get an 85% LTV mortgage?

Having a 15% deposit is a key starting point, but lenders will also look at whether they believe you can afford the mortgage and manage the risk of lending at that LTV.

While each lender’s criteria can vary, affordability and risk checks commonly include:

• Income and employment (including stability and type of income)
• Regular outgoings and existing financial commitments
• Credit history and how you’ve managed credit previously
• Overall affordability against the lender’s stress-testing approach
• The property and valuation (including whether the valuation supports the loan amount)

If you’re buying with a partner, lenders will assess the combined application, but the way affordability is calculated can differ depending on income type and circumstances.

What types of mortgages are available at 85% LTV?

At 85% LTV, many mainstream mortgage product types may be available, including:

• Fixed-rate mortgages (where the interest rate and monthly payment are set for an initial period)
• Variable-rate mortgages (where the rate can change over time)
• Repayment mortgages and interest-only mortgages (subject to lender rules)

The availability of specific products can vary by lender and by the current mortgage market.

85% LTV and buy-to-let

For buy-to-let, the lending approach is different from residential mortgages. Even if 85% is a possible target LTV, buy-to-let products often have stricter underwriting requirements.

Lenders may place greater emphasis on:

• Rental income and affordability based on rental performance
• Your personal income (separate from rental income)
• Credit profile
• Age and other product-specific limits

As a result, the deposit and eligibility picture for buy-to-let can be more demanding than for owner-occupied purchases.

How 85% LTV compares with other LTVs

LTV is one of the main factors that influences mortgage pricing and product availability.

In broad terms:

• Lower LTVs (bigger deposits) can reduce lender risk and may improve pricing.
• Higher LTVs (smaller deposits) can increase lender risk and may lead to higher rates.

If you’re deciding between saving for a lower LTV versus buying at 85% LTV, it can help to compare:

• the deposit you can realistically achieve
• the monthly payment difference
• the total interest cost over the term
• how long it would take to save the extra deposit

Key takeaways

• 85% LTV means a 15% deposit and borrowing 85% of the property value.
• Affordability checks go beyond the deposit—income, outgoings, credit history, and the property valuation all matter.
• 85% LTV can help you buy sooner, but rates may be higher than at lower LTV levels.
• Keeping some savings aside for home-buying costs can reduce pressure after completion.

Related LTV guides

• 100% mortgages (no deposit)
• 95% mortgages (5% deposit)
• 90% mortgages (10% deposit)
• 85% mortgages (15% deposit)
• 80% mortgages (20% deposit)
• 75% mortgages (25% deposit)
• 70% mortgages (30% deposit)
• 65% mortgages (35% deposit)
• 60% LTV mortgages (40% deposit)
• How much deposit do I need to buy a house?