Mortgage Lenders Cut 95% LTV Deals | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Derin Clark

Derin Clark

Online Reporter
Published: 02/06/2020

Despite many lenders re-introducing higher loan-to-value (LTV) mortgage deals, first-time buyers with a 5% deposit will be disappointed that the number of deals at a 95% LTV have actually fallen since May.

Research carried out by found that there were 11 two year fixed rate deals at a 95% LTV in May, but in June this had fallen to six. Meanwhile, the number of deals at a 90% LTV increased by 31 month-on-month, increasing from 24 in May to 55 in June, and the deals at 85% LTV increased from 87 in May to 116 in June.

In the five year fixed rate chart, the number of deals at a 95% LTV stood at 11 in May, but fell to nine in June. Again, the number of deals at a 90% and 85% LTV increased month-on-month, with 90% LTV deals increasing by 25, rising from 26 in May to 51 in June, and 85% LTV deals increasing by 33, up to 116 in June from 83 in May.


Product numbers May-20 Jun-20 Difference
Two-year fixed rate (85% LTV) 87 116 29
Two-year fixed rate (90% LTV) 24 55 31
Two-year fixed rate (95% LTV) 11 6 -5
Five-year fixed rate (85% LTV) 83 116 33
Five-year fixed rate (90% LTV) 26 51 25
Five-year fixed rate (95% LTV) 11 9 -2

Average first-time buyer rates

Although the average rates on both a two and five year fixed rate deal at 95% LTV have fallen since May, first-time buyers able to double their deposit from 5% to 10% can get average rates at 0.98% lower on a two year fixed mortgage and 0.91% lower on a five year fixed deal. For example, in June, the average rate on a two year fixed mortgage at a 95% LTV was 3.28%, while the average rate at 90% LTV was 2.30%. Meanwhile, in the five year fixed rate chart, the average rate at 95% LTV was 3.48%, falling to 2.57% at a 90% LTV.


Average rates May-20 Jun-20 Difference
Two-year fixed rate (all LTVs) 2.09% 2.02% -0.07%
Two-year fixed rate (85% LTV) 2.33% 2.09% -0.24%
Two-year fixed rate (90% LTV) 2.40% 2.30% -0.10%
Two-year fixed rate (95% LTV) 3.36% 3.28% -0.08%
Five-year fixed rate (all LTVs) 2.35% 2.26% -0.09%
Five-year fixed rate (85% LTV) 2.63% 2.32% -0.31%
Five-year fixed rate (90% LTV) 2.65% 2.57% -0.08%
Five-year fixed rate (95% LTV) 3.62% 3.48% -0.14%


To put these rates in real terms, first-time buyers could save an average of £153.36 per month by doubling their deposit from 5% to 10%. In January, Zoopla stated that the average first-time property costs £220,000. This means that first-time buyers would need £11,000 to put down at 5% deposit. This would mean they would need a mortgage of £209,000, which at an average rate of 3.28% on a two year fixed deal at 95%, would mean the monthly repayments were £1021.81 per month. But if a 10% deposit of £22,000 could be saved, it would mean that a mortgage of £198,000 would be needed, which at an average rate of 2.30% on a two year deal at 90% LTV, would result in repayments of £868.45 per month. Borrowers can find out exactly how much their mortgage repayments will be by using our mortgage repayment calculator.

As well as this, first-time buyers looking to purchase their first home may find that by waiting longer, they could see more mortgage deals at a higher LTV enter the market. As Rachel Springall, finance expert at, explained: “As lockdown eases, and individuals return to work and attempt to discover normality again – they may well be starting to house-hunt. However, it may be a bit premature for them to buy a home imminently and instead they may wish to wait for more competition to return to the mortgage market for low deposit deals. Alternatively, if borrowers have a bit of extra disposable income and the ability, they would be wise to raise their deposit to 10% to find a greater choice of deals for a lower cost.

“Whatever borrowers decide to do, it is imperative they seek independent financial advice before they commit to a mortgage deal. It is hoped that the mortgage market will adapt once more to accommodate borrowers with small deposits, but it will not happen overnight.”


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. 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.

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