85% LTV Moving Home Mortgages

What is an 85% loan-to-value mortgage?

An 85% loan-to-value (LTV) mortgage is a type of loan used to purchase property if you only have a 15% deposit or equity. Also known as 85% mortgages, they are so named because the loan will cover 85% of a property’s overall value.

While usually more expensive than those that cater to smaller portions of a property, 85% LTV mortgages often charge lower interest rates than their 90% and 95% LTV counterparts. This makes them a popular choice among those looking to join the property ladder who can stretch to a 15% deposit. In fact, nearly one in four first-time buyers (23%) look for an 85% LTV mortgage deal, according to Moneyfacts data (correct as of November 2025).

The data also revealed there’s modest demand from homemovers – with more than one in 10 (13%) searching for a mortgage that can finance up to 85% of their new home.

85% LTV mortgage application process

Borrowers can apply for an 85% LTV mortgage either directly with the lender or via an intermediary (depending on the specific deal). As well as proof of a deposit equivalent to 15% of the property’s value, you’ll also likely need:

• Good credit history. (Check your credit score and learn how to improve your rating).
• Proof of identity (e.g. a driving licence or passport) and address (e.g. a bank statement or utility bill).
• Bank statements and payslips (usually from the last three to six months).
• Details of any regular outgoings (including utility bills, insurance premiums and credit card or loan repayments).

However, this list is by no means comprehensive. The documents you need to provide can also differ slightly if you work for yourself; learn more about how to get a mortgage when you’re self-employed.

What are the costs associated with 85% LTV mortgages?

In addition to 15% deposit or equity, there are some other costs to getting an 85% LTV mortgage that you’ll need to consider, such as:

• Product fees (e.g. booking or arrangement fees)
• Surveyor fees
• Legal fees
• Broker fees (only if using a mortgage broker)
• Stamp duty (applicable to first-time buyers and homemovers purchasing a property over certain thresholds, as well as those buying a second home).
• Early Repayment Charges (ERCs)

Best mortgage rates: 85% LTV

Just like other types of mortgage deals, those that cater to 85% LTV charge either a fixed or variable rate.

The best 85% LTV mortgage rates will vary depending on your needs and circumstances. For instance, borrowers who prefer the stability of a longer-term fix will find these traditionally charge higher interest rates than their shorter-term counterparts (although this isn’t always the case – especially during periods of uncertainty).

Meanwhile, those who want to save money on upfront costs may find some mortgage deals come with higher interest rates in exchange for charging no additional product fees.

That’s why it’s crucial to consider more than just the rate when choosing a mortgage – as the lowest-priced deal may not necessarily be the most cost-effective for your situation. Other factors to think about include the fees, lending area, incentives and any restrictions.

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

Speak to an award-winning mortgage broker today