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Loan to Value (LTV) on Tracker Mortgages

Discover how different loan to value (LTV) ratios affect tracker mortgages

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 27, 2021

While some people like the certainty of a fixed-rate mortgage, others are happy to have payments fluctuate in line with prevailing interest rates.

If that’s you, a tracker mortgage could be of interest, so you’ll no doubt want to know more about the deals are on offer and the typical loan-to-value (LTV) ratios that lenders offer.

To help you find out more about tracker mortgage LTVs, we’ve written this article.

For the best advice, call us on 0808 189 2301 or make an enquiry. The mortgage experts we work with are, whole of market, meaning that they have access to the best deals that may not be available to the public. They’ll be able to provide tailor-made advice to your personal circumstances.

Do loan to value (LTV) ratios affect the tracker mortgage deal I can get?

As with most mortgages, loan-to-value ratios (LTV) do have an effect on the cost of your mortgage. If you have a bigger deposit to put down, the lower your LTV ratio will be, therefore you’re more likely to secure a mortgage with a lower interest rate.

For those of you who have a smaller deposit and higher LTV, then the cheaper mortgages with the lower rates of interest likely won’t be offered to you because mortgage lenders may consider you to be more of a risk.

Even if you’ve got a fantastic credit history and a secure job with a good wage, if you only have a small deposit the risk associated with your mortgage is higher. That’s because if anything were to go wrong, your chosen lender would have more money to recoup from the property.

But, just because a smaller deposit and higher LTV might mean the best rates aren’t available to you right now, doesn’t mean you can’t secure a great tracker mortgage deal.

A good way to make sure you’re getting the best possible rate on your tracker mortgage, no matter whether your LTV is 60%, 75% or 95%, is to speak with a mortgage advisor.

Call us on 0808 189 2301  we’ll connect you with an experienced broker who can answer all your questions and help you get the right mortgage for your specific needs.

Can I get a 95% LTV tracker mortgage?

Yes, there are a number of different lenders who offer tracker mortgages with a 95% LTV. The mortgage interest rate available on your 95% tracker mortgage will vary but expect to pay anything upwards from 2% above the base rate with a 5% deposit.

Of course, because many of the 95% loan to value tracker mortgages are offered for a period of between two to five years, you may be able to secure a better rate in just a couple of years’ time. That’s even if you opt to stick with a tracker mortgage, so it pays to keep on top of mortgage and housing market developments to try and get the best deal that’s available.

Alternatively, you may decide to wait a little bit longer to save up for a larger mortgage deposit.

Another way to secure the best 95% LTV tracker mortgage rate is to speak with a fully qualified and experienced mortgage broker, like those we work with. If you’d like to find out more, make an enquiry and we’ll introduce you to the right expert for free.

Is there a good selection of 90% LTV tracker mortgages?

Where you have a slightly larger deposit and apply for a tracker mortgage with a 90% LTV, you may be able to get a lower rate of interest.

Of course, finding the best 90% LTV tracker mortgage isn’t just about the rate of interest, other details that can be useful include:

  • The ability to overpay each month
  • Flexibility to exit the mortgage deal without stiff penalties on certain tracker mortgages

Do lenders offer 85% or 80% LTV tracker mortgage deals?

With so many different mortgage lenders on the market, it’s no surprise that some tracker mortgage deals are aimed at homebuyers looking for finances for 80% and 85% LTV ratios.

Again, where you have a larger deposit, lenders consider you less of a risk and are typically willing to offer you a lower mortgage interest rate. This helps reduce your monthly repayments and can make it easier to overpay and attempt to repay your mortgage earlier than the term you agreed.

To find the best 80% and 85% LTV tracker mortgages, you could spend time researching online and speaking to different lenders. However, that still wouldn’t give you access to all the deals an experienced mortgage advisor can choose from.

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What are the best 75% LTV tracker mortgages?

If you’re in the fortunate position to be able to put down a 25% deposit on your home, which would mean an LTV ratio of 75% for your tracker mortgage, you’ll probably see an even bigger number of products and rates available to you.

Mortgage interest rates fall again and the number of lenders willing to agree to a mortgage deal with you is likely to increase.

To make sure you get the best tracker mortgage deal possible, contact us  and we’ll put you in touch with the right mortgage advisor for your needs.

Is it possible to get 60% LTV tracker mortgages?

Yes, however, if you think that larger deposit will secure you a better deal with an even lower rate of interest, when it comes to some lenders, you may be disappointed.

That’s not to say that some lenders don’t reserve their best mortgage deals for homebuyers with a larger deposit—they do. However, not all of them use the rate of interest as the main enticement at this level of LTV. Instead, you’re more likely to secure a flexible mortgage or even a longer-term at that great rate of interest.

That means the best 60% LTV tracker mortgage deals don’t just have the lowest rate of interest, they should come packed with other benefits that are attractive to home-buyers with such a healthy deposit.

Speak with a tracker mortgage expert

If you’re interested in finding out more about tracker mortgages and would like to know your options for different LTVs such as 75% and 90%, then call us on 0808 189 2301 or fill out an enquiry form.

We’ll connect you to a tracker mortgage broker who could save you time. money and disappointment in the long run.

We don’t charge a fee, there’s no obligation and your credit report will not be affected.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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