What is a 75% LTV mortgage

With a 75% LTV mortgage you can borrow up to 75% of the purchase price of a home.

You pay the remaining 25% as a deposit before you start paying your mortgage.

If you’re remortgaging onto a 75% LTV mortgage the 25% could be the equity in your home. 

This would only be an option if:

  • your home’s gone up in value enough

  • you’ve repaid enough of your current mortgage

LTV stands for loan to value.

It’s the ratio between the loan you take out and the value of the property.

The higher the LTV, the higher the interest rate you’ll pay as the risk to the lender increases when you borrow more.

75% LTV buy to let mortgages

A 75% LTV mortgage could be right for you if you want to buy a property to rent out or remortgage to get a better deal.

Some lenders have withdrawn certain buy to let mortgages, or left the market entirely, because of the coronavirus.

It’s still possible to get a 75% LTV mortgage, so speak to a broker to find out which lender has the most suitable deal for your circumstances

75% LTV Help to Buy mortgages

If you take out a Help to Buy equity loan the government will lend you up to 20% of the cost of your home. 

This means you only need a 5% deposit and a 75% mortgage.

The loan is interest free for the first 5 years. You then pay 1.75% on the outstanding amount as interest. This goes up each year by 1%, plus inflation.

Read our Help to Buy guide to find out more.

75% LTV 5 year fixed mortgages

A 75% LTV 5 year fixed rate mortgage might be for you if you want to pay the same amount each month for the next 5 years.

Rates for a 5 year fixed mortgage are usually higher than for a 2 year fixed mortgage, but you’ll be certain that your repayments won’t increase in that time.

If you want to pay a lower rate, you could take out a 2 year fixed rate mortgage and then take out another fixed rate mortgage after that.

You run the risk of interest rates having risen by then, though.

Should I get a 75% LTV mortgage

A 75% LTV mortgage could suit you if you’ve got 25% of the purchase price for a deposit.

There’s usually a good choice of 75% LTV mortgages on the market, so ask a mortgage broker to find you a deal that best suits your circumstances.

How to get the best 75% LTV mortgage

The best 75% LTV mortgages have lower interest rates and lower fees.

There might be less choice at the moment as some lenders have reduced their range of mortgages because of the coronavirus.

Speak to a broker who works with lots of lenders if you need any help.

Trussle, for example, works with 90 lenders offering about 12,000 deals.

To get the best deal make sure you know how much a mortgage will really cost you before taking it out. 

This is known as the true cost. It’s the total amount you'll pay back over the initial fixed or discounted period.

Add up the interest, monthly repayments and any fees, then take away any cashback.

We also take into account how much you’d still have to repay at the end of the initial period.

Knowing the true cost – as well as the outstanding balance at the end of the initial period – helps you choose the most suitable mortgage for your circumstances.

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Your home could be repossessed if you don't keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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