By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
Large-deposit mortgages: we reveal the best remortgaging and home-buyer deals
Mortgages for buyers and homeowners with large deposits might be getting cheaper, following Yorkshire Building Society's decision to cut the rates on its two-year fixed-rate deal at a 65% loan-to-value (LTV) ratio.
Under the terms of the deal, first-time buyers and home movers with a deposit of at least 35% can lock in a rate of just 1.46% for two years.
But can you get a cheaper mortgage rate if you've got an even bigger deposit? And what about if you're remortgaging your current property? Here, we look at the best deals at 50-65% LTV, plus how the market differs if you're borrowing more than £1m.
What counts as a large-deposit mortgage?
Large deposits are usually considered to be those covering 35% or more of the property's value, meaning you'd require a mortgage at an LTV (loan-to-value) ratio of 65% or less.
But does having a bigger deposit mean you'll get a significantly better deal?
Generally, the more money you can put down as a portion of the property value, the lower the interest rate you'll be charged.
However, recent months have seen fierce competition between lenders to encourage first-time buyers with small deposits to enter the market. So, if you're saving for your first property, building up a much larger deposit may not always pay off.
- Find out more:LTV calculator- what LTV will you need on your mortgage?
Cheapest mortgage rates at 50%, 60% and 65% LTV
In the current market, most people are taking out fixed-rate mortgages for two or five years.
We've recently identified that two-year rates are on the rise, with the gap closing between two and five-year deals, but it is still possible to get a good deal for both terms.
The average rates are currently 2.49% for a two-year fix and 2.9% for five years. But if you've got a large deposit you'll be able to pay considerably less.
The tables below show the best introductory rates at 50%, 60% and 65% LTV. Links take you to our reviews of each lender.
Two-year fixed-rate deals
| Max LTV | Lender | Initial rate | Revert rate | APRC | Fees | Available to | Loan size |
| 50% | Coventry Building Society | 1.55% | 4.99% | 4.4% | £999 | First-time buyers, home movers, remortgagers | Up to £2m |
| 60% | Halifax | 1.4% | 4.24% | 4% | £1,495 | First-time buyers | £250,000 - £1m |
| 65% | Yorkshire Building Society | 1.46% | 4.25% | 4.2% | £995 | First-time buyers, home movers | £25,000 - £500,000 |
Source: Moneyfacts. Correct 21 February 2019.
Bucking the trend that a bigger deposit gets you a better rate, the top rates on offer at both 60% and 65% LTV beat that offered by the cheapest deal at 50% LTV.
However, this may be due to the fact that there's much less competition between lenders over 50% LTV mortgages. In fact, there are currently only seven two-year mortgage deals with maximum LTVs of 50%, compared with 38 deals at 65%, and 113 products at 60% LTV.
It's worth noting that, while the Halifax mortgage offers an attractive deal, there are a few caveats. It is only available tofirst-time buyers. And, due to the loan size restrictions, to take out this mortgage at 60% LTV, you would need to be buying a home worth at least £417,000.
Five-year fixed-rate deals
| Max LTV | Lender | Initial rate | Revert rate | APRC | Fees | Available to | Loan size |
| 50% | Coventry Building Society | 1.99% | 4.74% | 3.8% | £999 | First-time buyers, home movers, remortgagers | Up to £2m |
| 60% | Halifax | 1.79% | 4.24% | 3.6% | £1,495 | First-time buyers | £250,000 - £1m |
| 65% | Principality Building Society | 1.9% | 5.05% | 3.9% | £1,395 | First-time buyers, home movers, remortgagers | £5,000 - £750,000 |
Source: Moneyfacts. Correct 21 February 2019.
There are comparatively fewer five-year deals for large deposits: seven at 50% LTV, 96 at 60% and 30 at 65%.
Again, the 60% and 65% deals beat the rate offered by the top 50% deal, so you won't necessarily find cheaper rates if you have a bigger deposit.
The Coventry Building Society deal does have the advantage of offering loans of up to £2m - twice that of Halifax. However, if you're borrowing more than £1m, you may find that the mortgages in the section below offer better value.
Note that the Halifax deal, again, is only for first-time buyers, and has the same minimum loan restriction.
- Find out more:how to find the best mortgage deals
Large deposits for premium properties
If you have a large deposit to put down, but you also need to borrow a lot of money for a premium property, the mortgages available can start to look quite different.
A few 60% LTV deals are available, and some come with surprisingly low rates.
Halifaxoffers a two-year fixed-rate mortgage to first-time buyers and home movers borrowing between £1m and £5m.The deal has an initial rate of 1.48%, reverting to 4.24%. There's an arrangement fee of £1,495 and an overall APRC of 3.8%.
As the deal is available at 60% LTV, the property you were buying would need to cost at least £1.67m.
The same applies to the best five-year rate for those borrowing £1m-£3m, which is available fromSkipton Building Society at 1.99%.
The mortgage comes with acompletion fee of £995 and reversion rate of 4.99%, giving a 3.8% APRC.
Skipton's deal is available to people remortgaging their current home, as well as first-time buyers and home movers.
- Find out more:remortgaging: how to save thousands on your mortgage
