Top mortgage deals for buyers with big deposits

Four in ten people buying a London property in May accomplished it with a deposit of at least 60%, according to new research.

Data from chartered surveyor e.surv’s Mortgage Monitor report shows a significant deposit divide within the capital, with only 14% of London buyers using small deposits.

Here, we take a look at in which the highest proportion of buyers have big deposits, and run through some of the best rates available to buyers with money in their pockets.


Where do people have the largest deposits?

The research by e.surv implies that London and also the East possess the highest proportion of homebuyers with large deposits – despite the fact that property prices during these areas also are usually greater than the rest of the UK.

For the needs of the table, ‘small deposit lending’ encompasses deposits as high as 15%, while ‘large deposit lending’ are the ones over 40%.

Region Large deposit lending Small deposit lending
London 40% 13.8%
South East 38.2% 18.9%
Eastern England 35.7% 20.8%
South/South Wales 34.8% 20.8%
Northern Ireland 32.8% 35.7%
Scotland 32.7% 21.9%
Midlands 27.2% 27.4%
Yorkshire 24% 32.6%
North West 23.5% 32.1%

At another end of the scale, more than a third of homes in Northern Ireland go to borrowers with small deposits.

But does a big deposit mean a significantly better deal? Usually of thumb, the more money you can put down like a area of the property value – referred to as loan-to-value ratio or LTV – the lower the eye rate the lending company charges you you.

Below, we look at the best-available deals for buyers with deposits in excess of 25% from the property value.

Best fixed-rate deals

Fixed-rate mortgages are very well-liked by homebuyers, as they offer protection against interest rate rises for any set period of time – usually two, three or five years.

In the last couple of years, there's been a great deal of competition in the two-year market, which has led to really low rates for buyers and individuals remortgaging.

The table below shows the very best deals currently available on two and five-year terms based on their initial rate.

Two-year fixed-rate deals

Lender Initial rate Revert rate APRC Max LTV Fees Remortgage only?
Santander 1.29% 3.75% (3.25% + base rate) 3.5% 75% lb1,999 No
Yorkshire Building Society 1.36% 4.99% 4.5% 75% lb1,495 No
Halifax 1.43% 3.99% (3.49% + base rate) 3.6% 60% lb1,495 No

Five-year fixed-rate deals

Lender Initial rate Revert rate APRC Max LTV Fees Remortgage only?
Skipton 1.83% 4.74% 3.6% 60% lb1,995 No
HSBC 1.84% 3.94% 3.1% 60% lb1,499 No
Lloyds Bank 1.84% 3.99% 3.1% 50% lb1,495 Yes

Best variable-rate deals

While fixed-rate goods are by far the most popular type of mortgage, there are several attractive discount and tracker deals out there for buyers with a higher appetite for risk.

Two-year discount deals

Discount mortgages provide a set reduction on the lender’s standard variable rate (SVR) for a set amount of time. For example, if the bank’s SVR is 5% and the discount is 4%, you’ll pay an interest rate of 1% in your mortgage during this period.

While this might sound cheap in writing, if the lender’s SVR increases (for example due to the Bank of England base rate rising), then you’re prone to face higher costs.

In the two-year market, the table topping discount deals offer rates of under 1% – well below those on the other popular type of variable product, the tracker mortgage.

Lender Initial rate Discount Revert rate APRC Max LTV Fees
Yorkshire Building Society 0.97% 4.02% 4.99% 4.4% 65% lb1,495
Clydesdale Bank 0.99% 3.96% 4.95% 4.3% 60% lb1,449
Monmouthshire 0.99% 4% 4.99% 4.4% 80% lb2,149

Five-year discount deals

Lender Initial rate Discount Revert rate APRC Max LTV Fees
Newbury 1.74% 2.46% 4.2% 3.5% 75% lb600/lb850
Leeds 1.80% 3.89% 5.69% 4.4% 80% lb499

Five-year tracker deals

In the five year market, however, tracker mortgages are priced nearly as cheaply as discount deals.

Tracker mortgages follow the Bank of England base rate plus a set percentage. Therefore if your rate is 1.5% and the base rate is 0.5%, you’ll pay 2%.

Tracker deals are attractive right now, but with speculation within the base rate increasing over the next couple of months, it’s doubtful that they’ll have the ability to maintain fixed-rate deals.

Lender Initial rate Tracker Revert rate APRC Max LTV Fees
Nationwide 1.89% 1.39% + base rate 3.99% 3.1% 60% lb999
Barclays 1.99% 1.49% + base rate 3.49% + base rate 3.4% 75% lb1,999

Note: All mortgage data in this article is sourced from Moneyfacts, accessed 20 June 2022. Some products are only accessible through either mortgage brokers or from a lender.

Finding the very best mortgage deal: top tips

When you are looking at finding the best mortgage deal, scientific studies are key, so it’s worth using the following steps.

Learn more within our full guide on finding the best mortgage deal.


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