CasviaThe headline: high-LTV lending is rising
The Bank of England reported on 8 September 2026 that the share of gross mortgage advances with an LTV above 90% rose to 8.4% in the second quarter of 2026. That was up 0.4 percentage points from the previous quarter and 1.4 percentage points from a year earlier.
The 8.4% figure is the highest share recorded since 2008 Q2. It does not mean that most buyers are borrowing above 90% LTV — more than nine in ten advances are still at 90% LTV or below — but it does show that high-LTV borrowing has become a larger part of the market.
Source: Bank of England — Mortgage Lenders and Administrators Statistics, 2026 Q2, published 8 September 2026.
What does 90% or 95% LTV actually mean?
Loan-to-value (LTV) is the mortgage as a percentage of the property's value. If you buy a £300,000 home with a £30,000 deposit, you borrow £270,000 and your LTV is 90%.
| LTV | Deposit | Deposit on £300k | Mortgage |
|---|---|---|---|
| 95% | 5% | £15,000 | £285,000 |
| 90% | 10% | £30,000 | £270,000 |
| 85% | 15% | £45,000 | £255,000 |
| 80% | 20% | £60,000 | £240,000 |
| 75% | 25% | £75,000 | £225,000 |
| 60% | 40% | £120,000 | £180,000 |
Deposit = property price × (100% − LTV). Figures above are simple purchase-price examples and do not include fees or taxes.
Why does a lower LTV usually help?
MoneyHelper says buyers usually need a deposit of at least 5% to 10% of the house price. A larger deposit means a lower LTV, which reduces the lender's exposure if property prices fall or the borrower cannot keep up with repayments.
That lower risk usually gives borrowers access to a wider range of mortgage deals and can mean a lower interest rate. MoneyHelper notes that the most competitive rates are typically available around 60% LTV, although actual pricing changes by lender and market conditions.
This is why the deposit affects your cost twice: first because you borrow less, and second because a lower LTV may place you in a cheaper mortgage pricing band.
Source: MoneyHelper — Saving money for a mortgage deposit.
How much can LTV change the monthly payment?
To isolate the effect of borrowing less, take a £300,000 home and use the same illustrative rate of 5% over a 25-year repayment term at each LTV. The rate is held constant here, so this table does not assume that any specific LTV will get a specific market rate.
| LTV | Mortgage | Illustrative monthly payment |
|---|---|---|
| 95% | £285,000 | ≈ £1,666 |
| 90% | £270,000 | ≈ £1,578 |
| 85% | £255,000 | ≈ £1,491 |
| 80% | £240,000 | ≈ £1,403 |
| 75% | £225,000 | ≈ £1,315 |
| 60% | £180,000 | ≈ £1,052 |
Illustrative only: 5% annual rate, 25-year repayment mortgage. Product rates, fees and eligibility vary by lender.
On those assumptions, moving from 95% to 90% LTV cuts the loan by £15,000 and the payment by about £88 a month. Moving from 95% to 80% LTV cuts the loan by £45,000 and the payment by about £263 a month. If the lower LTV also unlocks a cheaper interest rate, the difference could be larger.
Does the rise in 90%+ lending mean buying is easier?
Not necessarily. A higher share of high-LTV lending suggests that more borrowing is taking place with smaller deposits, but affordability still depends on income, existing debts, monthly spending, credit history, lender stress tests and mortgage rates.
The Bank of England's September 2026 Agents' summary said the property market had softened further, with higher mortgage rates weighing on affordability. So the two things can coexist: more high-LTV lending can be available while monthly affordability remains difficult for many households.
For an individual buyer, the practical question is not simply “Can I get a 95% mortgage?” but “Can I comfortably afford the payment if rates or other costs are higher than expected?”
Source: Bank of England — Agents' summary of business conditions, September 2026.
Should you wait for a bigger deposit?
There is no universal answer. Waiting can reduce your LTV and borrowing cost, but it also means delaying a purchase while house prices, rents, savings rates and mortgage rates can move in either direction.
A useful way to frame the decision is to compare the next LTV threshold. If you are close to moving from 95% to 90%, or from 90% to 85%, calculate how much more cash you need and then compare:
- the lower mortgage balance;
- the monthly payment difference;
- the mortgage rates actually available to you at each LTV;
- the extra rent and time required to save the larger deposit; and
- the cash buffer you would have left after buying.
Do not use every pound of savings just to reach a lower LTV band. Home purchases also involve legal fees, surveys, moving costs, possible repairs and property taxes. Keeping an emergency buffer can matter more than forcing the LTV down by one extra percentage point.
What should first-time buyers take from the 2026 data?
The main message is not that a small deposit is suddenly cheap. It is that high-LTV mortgages are playing a larger role in the UK market again. For buyers who cannot reach a 15% or 20% deposit quickly, that can widen the set of possible routes into home ownership.
But a 5% deposit still leaves you borrowing 95% of the property's value. That means a larger loan, potentially higher monthly payments and less protection if property prices fall. Before comparing products, work out the full purchase budget rather than focusing only on the minimum deposit.
Frequently asked questions
What is a high-LTV mortgage?
There is no single legal definition, but mortgages above 90% LTV are commonly described as high-LTV because the borrower is providing less than a 10% deposit. The Bank of England specifically tracks the share of gross advances above 90% LTV.
Is 90% LTV better than 95% LTV?
A 90% LTV mortgage means a larger deposit and a smaller loan than 95% LTV. That generally reduces monthly repayments and may improve the mortgage deals available, but actual rates and eligibility vary by lender.
How much deposit do I need for 90% LTV?
You need a 10% deposit. For a £250,000 home that is £25,000; for £300,000 it is £30,000; and for £400,000 it is £40,000.
How much deposit do I need for 95% LTV?
You need a 5% deposit. For a £250,000 home that is £12,500; for £300,000 it is £15,000; and for £400,000 it is £20,000.
Does a lower LTV guarantee a lower mortgage rate?
No. Lower LTV generally improves your risk profile and can unlock cheaper product bands, but the rate also depends on the lender, product, term, credit profile and wider market conditions.
Sources
- Bank of England — Mortgage Lenders and Administrators Statistics, 2026 Q2
- Bank of England — Agents' summary of business conditions, September 2026
- MoneyHelper — Saving money for a mortgage deposit
Educational guide only — not financial advice. Mortgage rates, lender criteria and property-market conditions change. Check current lender terms and official guidance before making a decision.