Almost one in five first-time buyers seeking max 60% LTV mortgages
Almost one in three (31%) first-time buyers are opting for 90% LTV mortgages, and a further 10% are looking at 95% LTV options. This hints at many first-time buyers relying on 5-10% deposits. This translates to £13,650 to £27,300 at the average UK house price of £272,995 [source].
Almost one in five (17%) first-time buyers are seeking mortgages with maximum 60% LTVs. For context, a 40% deposit on the average UK house price would require a deposit of around £110,000, highlighting that there is a distinct group of first-time buyers in a favourable financial position.
Borrowers with smaller deposits, or those who have accumulated less equity, could be paying £134 more per month more compared to those with a larger deposit or equity to borrow the same amount.
Homeowners with around 25%equity are m ore likely to make their next next move on the housing ladder, with this threshold potentially acting as a key financial or psychological milestone before progressing to a new property.
| Consumer demand for fixed rate mortgages by LTV | |||||
| Max Loan-to-Value (LTV) | First-time buyers | Second-time buyers | Remortgage | Moneyfacts Average Mortgage Rate (2-year fix) | Monthly mortgage repayment* |
| 60% | 17% | 50% | 71% | 4.48% | £1,387 |
| 75% | 16% | 24% | 17% | 4.88% | £1,444 |
| 85% | 23% | 13% | 8% | 4.95% | £1,454 |
| 90% | 31% | 9% | 3% | 5.24% | £1,497 |
| 95% | 10% | 3% | 1% | 5.41% | £1,522 |
Consumers comparing fixed term mortgage deals on moneyfactscompare.co.uk, 3 October to 2 November 2025, by borrower type and LTV. Average mortgage rates correct as at 31 October 2025.
*Assumed £250,000 borrowed over 25 years. Capital and interest repayment.
Source: Moneyfacts Analyser
Adam French, Head of News at Moneyfactscompare.co.uk, said:
“First-time buyers in particular are feeling the weight of affordability pressures, with many relying on more expensive high LTV loans due to the challenges of raising a sizeable deposit. Meanwhile, more established homeowners who have accumulated greater equity, are in a better position to benefit from lower LTVs and more competitive mortgage rates.
“However, a significant proportion of first-time buyers are seeking mortgages at lower LTVs, suggesting that many are receiving significant financial support from family contributions or inheritance. This marks a growing divide in the housing market as those without additional financial assistance face greater financial strain, particularly as they are more vulnerable to rising rates or potential housing market corrections.”
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