While higher loan-to-value (LTV) mortgages dominate first-time buyer demand a significant minority are seeking sub-60% LTV deals, fresh data from Moneyfactscompare.co.uk can reveal.
At the same time, nearly one in five (17%) first-time buyers are seeking mortgages with a maximum 60% LTV, implying deposits of roughly £110,000 and highlighting a distinct group of buyers in a much stronger financial position. Borrowers with smaller deposits, or those who’ve built up less equity, could be paying around £134 more per month than those with larger deposits for the same borrowing amount.
The data also suggests that homeowners with around 25% equity are more likely to make their next move on the property ladder, a threshold that may serve as both a financial and psychological milestone for many.
| 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.”
