What are 85% mortgages and can I get one?

What are 85% mortgages?

An 85% mortgage, also called an 85% LTV (Loan to Value) mortgage, is a mortgage loan equivalent to 85% of the full property price of a home you want to buy. To get an 85% mortgage, you’ll need to put down at least 15% of the property price as a down payment, a.k.a your house deposit. You’ll then borrow the rest of the money from your mortgage lender. The mortgage loan and your deposit together will make up 100% of the full purchase price.

Are 85% mortgages available?

There is a wide range of mortgage lenders who offer 85% mortgages, both for traditional repayment mortgages and specialist schemes designed to help first-time buyers, or other people like doctors, nurses or teachers boost their buying budget. However, whether you can get an 85% LTV mortgage depends on if you have a big enough deposit, and whether you pass a lender’s eligibility and affordability criteria. If you have a low credit score, are self-employed or have a high Debt-to-Income ratio, you might struggle to be accepted for an 85% mortgage. 

Working with a mortgage broker that specialises in affordability can help you find mortgage deals you are likely to be accepted for, as well as ways you could boost your buying power. At Tembo, our online Fact Find will give you a view of what you could be eligible for in under 10-minutes, scanning over 100 lenders and over 20,000 mortgage products. It’s completely free, and there’s no credit check involved. 

Find out more: What to do if my mortgage application is declined?

Is 85% a good LTV?

Getting an 85% LTV mortgage is normally better than a 90% or 95% mortgage because you will typically have access to lower mortgage interest rates. However, most first-time buyers put down a 24% deposit, which would mean getting a 75%-80% LTV mortgage. But putting down a down payment of this size is easier to do for some than others, depending on how much properties cost and what you can save.

If you need help boosting your buying power, you’re in the right place. Create a free Tembo plan to discover all the ways you could boost your borrowing.

Can you get an 85% mortgage?

You may be able to get an 85% mortgage, it all depends on whether you’ll be accepted by a lender or not. If you’re not eligible for their specific mortgage products, or don’t pass their affordability and credit checks, your mortgage application will be declined. It might be that you need to increase your affordability to be accepted, which can mean putting down a larger deposit or using a guarantor mortgage. For example, if you have adverse credit, you may have to put down a larger deposit as lenders may see you as a riskier borrower.

An expert in mortgage affordability like Tembo can help you work out what 85% mortgages you could be eligible for, as well as all the ways you could boost your affordability if you’re struggling to get accepted. Get started today.

Can you get an 85% BTL mortgage?

Yes, it is possible to get an 85% BTL mortgage, but it’s much more common that the maximum loan size available for a Buy to Let mortgage is 80% LTV or less. Few lenders offer Buy to Let mortgages at 85% or 80% LTV; it’s more typical to put down a 25% deposit, which means you’ll need to put down a bigger down payment. 

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