How LTV Affects Your Mortgage Rate Mortgage lenders price their products in LTV tiers, typically at 60%, 75%, 80%, 85%, 90% and 95%. Within each tier, every lender sets their own rate, but rates almost always improve as LTV falls. The difference between a 95% LTV and a 75% LTV can be 1 to 1.5% on the interest rate, which translates to hundreds of pounds per month on a typical mortgage. That is why saving an extra few percent of deposit can pay for itself quickly.

First-Time Buyers and High LTV Mortgages Many first-time buyers start at 90% or 95% LTV because of the difficulty in saving large deposits. Mortgages are available at these levels, but the choice of lenders is smaller and the rates are higher. Your adviser can identify which lenders currently offer the best deals at your specific LTV and whether any government-backed schemes are available to you.

Remortgaging and Your LTV When you remortgage, your LTV is based on your current outstanding mortgage against your property's current value. If your property has increased in value or you have made significant overpayments, your LTV may have fallen since you first bought. This could mean you qualify for a better rate tier when you remortgage. Getting a valuation before you remortgage lets you know exactly where you stand and could unlock a considerably better deal.