The mortgages displayed on this page encompass all major types, unless you specify otherwise. This could be a variable or a fixed rate deal, depending on the wider mortgage market.
If in the column for mortgage type you see variable, this means that the rate could change at any time if the market or wider economy shifts. If it says discounted variable, this means you’ll get a rate that is a set percentage below the provider’s standard variable rate (SVR) for a certain number of years. A deal that says fixed comes with a rate that can’t change until the initial term of the deal is up. Capped mortgages come with a variable rate that can’t go above a certain amount (but tend to come with higher initial interest rates compared to simple variable rate mortgages), while tracker rate mortgages follow a specific external rate, usually the Bank of England base rate.
As you can see, most deals tend to only last for a certain number of years or even until a specific date. After this initial term is up, your rate with revert to the lender’s SVR unless you remortgage in time. If you find a deal that is ‘for term’, it means that you could have that mortgage for the entire 25 years or so that it would take you to repay the loan (provided you don’t pick an interest-only mortgage, in which case you’d still owe the exact same amount at the end of the term).
While it may be easy to have just one mortgage for the entire loan term and it means you’d only have to pay any product fees once, it’s highly likely that the rate you get won’t be the most competitive on the market, certainly not after a while. That’s why, no matter what kind of mortgage you have, it’s always a good idea to keep an eye on the comparison chart – especially if your initial deal period is about to end.
Finally, before you start applying for mortgages based on the list above, remember that the success of your application will depend on your credit rating, among other things, and that a failed application will decrease your credit score. So, do your homework and improve your score if needed to ensure you’ll be able to get the first mortgage you apply for.
As stated, the main advantage of an 80% LTV mortgage is that they’re generally cheaper than 85% or 90% alternatives, and almost certainly a better deal than first-time buyer mortgages. What’s more, thanks to the comprehensive mortgage search, you can tailor your search so you can easily find the most suitable mortgage for your needs, while seeing how much you’d need to pay each month should your application be accepted.
There are a few things to look out for, however. For one, you will notice that many mortgages may come with product fees, which can make the mortgage more expensive over the long run, so keep these extra upfront costs in mind when comparing the products on offer. Another potential disadvantage when it comes to 80% LTV mortgage deals is that if you stick with them for too long, you may be overpaying as you could qualify for a 75% or even 70% LTV mortgage (provided you’re on a repayment deal). This is another reason why it pays to review your mortgage deal every half year or so.
When looking at the details of any mortgage it’s also a good idea to see what the early repayment charges would be and if your mortgage is portable. This way, you will already know what you’d need to pay if you needed to remortgage early for whatever reason and you’ll be prepared if you decided to move home – not all mortgages allow you to port the deal over to a new home, and the ones that do allow it may require additional fees to be paid.
Our mortgage calculator helps you to see how much your mortgage might cost you each month.
Our how much can I borrow calculator gives you a range of how much a lender might consider lending you under a mortgage. This calculation is only an indication only.
Read our How much can I borrow for a mortgage guide to find out more about what can impact your potential sum of borrowing.
If you’re still not sure what kind of mortgage is right for you, you could consider using a mortgage broker. Not only can they provide valuable advice, but they may also have access to 80% LTV mortgage deals that are not available directly and therefore not on our charts.
However, keep in mind that you will have to pay a fee for such a service. Of course, it’s entirely possible that you will end up saving money anyhow thanks to the broker finding you a cheaper deal than you would have been able to get on your own, but it’s up to you whether you want to try talking to an adviser or go it alone – you can easily request a callback here.
Mortgage brokers could have access to 80% LTV mortgage deals that aren’t available directly to you.
It’s easy to change the calculator above so you are looking at mortgages with different LTVs or focus on a specific type. If you know exactly what kind of mortgage you want, you could also make things easy for yourself by going directly to the relevant comparison chart.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.