Average mortgage loan-to-value hits a record 79.31% as Moneyfacts rate reaches three-year high
More deals for buyers with 5% deposits and fewer for those with 40% pushed the average loan-to-value on core products to a record in data going back to November 2011, while the average new mortgage rate rose to 5.89%.
By Daily Oracles News Team1 min read
Lenders added deals for borrowers with small deposits in October while products for those putting down 40% or more became scarcer, pushing the average loan-to-value (LTV) on a core mortgage to 79.31%. That is the highest since Moneyfacts began keeping electronic records in November 2011.
According to the Moneyfacts UK Mortgage Trends Treasury Report, released on Wednesday, mortgages at 90% and 95% LTV now account for 24% of core products. The number of deals at 60% LTV fell to its lowest since March 2024.
Rates still rising
Moneyfacts' average new mortgage rate went from 5.83% in October to 5.89% at the start of November, the highest reading in three years. The Bank of England raised Bank Rate to 4% on 5 November.
At 90% and 95% LTV, average two-year and five-year fixed rates all went up over the month and are now above 6%.
Products also lasted a little longer on the shelf. The average deal was available for 17 days in October, up from 13 days in September but still shorter than the 21 days of a year earlier. Moneyfacts said the churn of products had calmed slightly.
First-time buyers stretching further
Moneyfacts linked the trend to how much first-time buyers now have to borrow. Office for National Statistics figures it cited put the median LTV for first-time buyers at 85.6% in 2025, the highest since before the 2008 financial crisis. The ratio of house prices to income for first-time buyers rose from 3.7 in 2006 to 4.3 in 2025.
Moneyfacts said lenders had spent months dealing with uncertainty over where interest rates were heading, alongside weak demand for property.
