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.”
You May Also Enjoy
Applicant budgets remain stable and rental prices in line with historic norms
The Impact of Increasing Lease Conversions on Estate Agents in 2026
First-time buyers help drive the most home moves for three years
Mortgage Lending Statistics – December 2025
Bank of England interest rates decision – Thoughts from the Industry
