85% LTV Mortgages with a 15% Deposit
If you have saved around 15% of a property's purchase price, an 85% loan-to-value mortgage may be one route to consider. Understand how the deposit works, what lenders may assess and what to prepare before making an application.
This illustrates the LTV calculation only. Availability remains subject to affordability, valuation, lender criteria and underwriting.
What does an 85% LTV mortgage mean?
An 85% loan-to-value mortgage means the mortgage represents 85% of the relevant property value, while you provide the remaining 15% as your deposit.
For example, if a property costs £300,000, a 15% deposit is £45,000. An 85% mortgage would therefore be £255,000, before allowing for any separate purchase costs or fees.
Having the deposit does not by itself determine whether a mortgage will be available. A lender will normally consider the applicant's income, expenditure, existing commitments, credit history, property and other criteria before deciding whether to lend.
How much is a 15% mortgage deposit?
The cash deposit depends on the price of the property. These examples show the simple 15% deposit and 85% mortgage relationship.
| Property price | 15% deposit | 85% mortgage |
|---|---|---|
| £200,000 | £30,000 | £170,000 |
| £250,000 | £37,500 | £212,500 |
| £300,000 | £45,000 | £255,000 |
| £400,000 | £60,000 | £340,000 |
Examples are illustrative calculations only and do not represent a mortgage offer, borrowing recommendation or affordability assessment.
How does 85% LTV compare with other deposit levels?
A larger deposit produces a lower LTV. A smaller deposit produces a higher LTV. This can affect which mortgage products and lender criteria may be relevant to your application.
| Cash deposit | Mortgage LTV | Mortgage share of property value | Simple example on £300,000 |
|---|---|---|---|
| 5% | 95% | 95% | £15,000 deposit / £285,000 mortgage |
| 10% | 90% | 90% | £30,000 deposit / £270,000 mortgage |
| 15% | 85% | 85% | £45,000 deposit / £255,000 mortgage |
| 20% | 80% | 80% | £60,000 deposit / £240,000 mortgage |
| 25% | 75% | 75% | £75,000 deposit / £225,000 mortgage |
The table explains LTV only. It is not a comparison of interest rates, lender availability or overall mortgage cost.
When a 15% deposit mortgage may be relevant
The same LTV can be relevant to borrowers in different circumstances. The lender assessment will still depend on the individual application.
First-time buyers
Buyers who have built a 15% deposit and are preparing for their first residential mortgage can compare the 85% LTV route with other deposit levels while considering affordability and purchase costs.
Home movers
Existing homeowners may use cash savings, equity released from the sale of their current home, or a combination of sources toward the deposit for their next property.
Self-employed applicants
Self-employed borrowers may be considered at 85% LTV, but the evidence used to establish income and affordability can vary between lenders and according to the applicant's circumstances.
Previous credit issues
The type, value, age and severity of previous credit problems can influence lender choice and the deposit required. A 15% deposit does not guarantee that an 85% LTV product will be available.
What can lenders assess at 85% LTV?
Deposit size is only one part of a mortgage application. The exact assessment and evidence depend on the lender and product.
Income and affordability
Income, regular expenditure and the proposed mortgage payment can all form part of an affordability assessment.
Existing commitments
Loans, credit cards, finance agreements, maintenance payments and other commitments can affect the amount a lender is prepared to consider.
Credit history
Lenders may review your credit conduct and any missed payments, defaults, CCJs or other relevant credit information.
Deposit source
You may need to evidence where the deposit comes from, such as personal savings, property equity or another source accepted by the lender.
The property
Property type, construction, condition, location and valuation can influence whether a lender is comfortable with the proposed security.
Mortgage term
The proposed term, applicant age and lender criteria can affect both affordability calculations and the available mortgage structure.
Information you may need for an 85% LTV mortgage
Having the main documents ready can make it easier to establish your circumstances before an application is submitted. Requirements vary by lender, employment type and case.
- Proof of identity and address.
- Evidence of employed or self-employed income, as applicable.
- Recent bank statements where requested.
- Evidence of the deposit and its source.
- Details of existing loans, credit and financial commitments.
- Information about the property being purchased.
- Details of any relevant previous credit issues.
How the process can work
A clear view of the deposit, income, commitments and property helps establish which route is realistic before progressing further.
Share your circumstances
Provide the expected property price, available deposit, income, commitments and relevant background information.
Review the mortgage route
The case can be considered against relevant lender criteria to establish what additional information may be required.
Prepare the application
Gather the requested evidence and confirm the property and borrowing details before submission.
Lender assessment
The lender completes its affordability, credit, valuation and underwriting checks before deciding whether to issue a mortgage offer.
Your 15% deposit is not the only cost to consider
Keeping some funds separate from the deposit can be important because a property purchase may involve additional costs. The amounts and charges depend on the transaction, lender and services you choose.
Your solicitor or conveyancer will charge for the legal work involved in buying the property.
A lender valuation and any separate survey you choose may involve a charge depending on the mortgage and service used.
Some mortgage products have fees. How they are paid or added to the mortgage can affect the overall cost.
The tax treatment depends on the property location, price and buyer circumstances.
Removals, insurance and other practical expenses should also be considered when setting the purchase budget.
Lockwell Finance's current site-wide fee disclosure states that all applications have a non-refundable £599 booking fee payable on submission. Confirm all fees relevant to your case before proceeding.
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Questions about 85% LTV mortgages
These answers explain the general principles. Individual lender criteria and mortgage availability can differ.
What is an 85% LTV mortgage?
An 85% LTV mortgage is a mortgage equal to 85% of the property value used for the lender's calculation. A buyer providing the remaining 15% would therefore have a 15% deposit.
Is a 15% deposit enough for a mortgage?
A 15% deposit corresponds to an 85% LTV mortgage, but having the deposit does not guarantee that a lender will offer a mortgage. Income, affordability, credit history, property details and lender criteria will also be assessed.
How much is a 15% deposit on a £250,000 property?
Fifteen per cent of £250,000 is £37,500. An 85% mortgage would be £212,500 before allowing for separate legal, tax, valuation, lender or other purchase costs.
Can a first-time buyer get an 85% LTV mortgage?
First-time buyers may be considered for 85% LTV mortgages where their circumstances meet the lender's affordability, credit, property and other eligibility criteria.
Can I get an 85% mortgage if I am self-employed?
Self-employed applicants may be considered at 85% LTV. The lender will normally require evidence of income, but the documentation and assessment method can vary according to the lender and how the applicant's income is structured.
Can I get an 85% LTV mortgage with bad credit?
Previous credit problems do not have one universal outcome. Their nature, age, amount and severity can affect lender availability, pricing and the deposit a lender requires. The wider application will also be assessed.
What evidence might I need for my deposit?
A lender may ask for bank statements or other evidence showing how the deposit was built up and where the money comes from. Requirements can differ where the deposit includes a gift, property equity or another source.
What other costs should I budget for?
Depending on the transaction, you may need to budget for legal work, valuation or survey costs, lender fees, applicable property taxes, insurance and moving costs in addition to your deposit.
Important information
The advice we give is not FCA regulated.
Mortgage and finance availability is subject to status, affordability, valuation, lender criteria and underwriting.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or another debt secured against it.
Information on this page is general and does not constitute legal, tax or financial advice.
Have you saved around 15% for your property purchase?
Share the property price, your available deposit, income, existing commitments and expected purchase timing so the case can be reviewed against relevant mortgage criteria.