Mortgages above 90% LTV hit their highest share since 2008 — what a smaller deposit really costs
Bank of England data published on 8 September 2026 shows 8.4% of new mortgage lending was above 90% loan-to-value, the highest since 2008. UKCalc calculates that on a £250,000 home a 5% deposit rather than 25% frees £50,000 but costs about £277.91 a month more, on an illustrative 4.5% rate.
What happened
According to Bank of England data published on 8 September 2026, gross mortgage advances were £77.4 billion in the second quarter of 2026. The share of that lending advanced at more than 90% loan-to-value (LTV) — the proportion of the property price being borrowed — was 8.4%, which the Bank of England describes as the highest share since the second quarter of 2008. The share above 75% LTV was 47.5%, the highest since the fourth quarter of 2007, and lending at high loan-to-income ratios was 46.0%. These figures come from the Bank of England's Mortgage Lenders and Administrators Statistics, its quarterly return from regulated lenders.
Gross mortgage advances were £77.4 billion in 2026 Q2, according to Bank of England Mortgage Lenders and Administrators statistics published on 8 September 2026.
Bank of England — Mortgage Lenders and Administrators Statistics — 2026 Q2, 8 September 2026
The share of gross advances with a loan-to-value above 90% was 8.4% in 2026 Q2, which the Bank of England describes as the highest share since 2008 Q2.
Bank of England — Mortgage Lenders and Administrators Statistics — 2026 Q2, 8 September 2026
The share of gross advances above 75% loan-to-value was 47.5% in 2026 Q2, the highest since 2007 Q4.
Bank of England — Mortgage Lenders and Administrators Statistics — 2026 Q2, 8 September 2026
The share of lending at high loan-to-income ratios was 46.0% in 2026 Q2.
Bank of England — Mortgage Lenders and Administrators Statistics — 2026 Q2, 8 September 2026
Bank Rate is 3.75%, held by the Monetary Policy Committee on 30 July 2026.
Bank of England — Bank Rate
What it means
A higher loan-to-value mortgage means a smaller deposit and a larger loan. On UKCalc's stated scenario — a £250,000 purchase at an illustrative 4.5% rate over 25 years — the two ends of the table compare as follows. At 95% loan-to-value: a £12,500 deposit, a £237,500 mortgage and £1,320.10 a month. At 75% loan-to-value: a £62,500 deposit, a £187,500 mortgage and £1,042.19 a month. The difference is £50,000 more paid upfront and £277.91 less paid each month. That is a cash-flow comparison and nothing more. It is not a claim that either option is economically superior: the larger deposit is not spent but becomes housing equity immediately, and it also carries an opportunity cost, since money held as equity is not available for anything else. A smaller deposit is not automatically the worse choice; it is a different one.
Who is affected
- First-time buyers
- Home movers
- Mortgage brokers
- Housing market analysts
Key numbers
Every figure below is a UKCalc calculation from the stated inputs, not a figure published by any source.
At a £250,000 price, a 95% mortgage needs a £12,500 deposit and repays about £1320.10 a month on UKCalc's scenario terms.
UKCalc calculation — see 95% LTV on a £250,000 property: deposit, loan and monthly repayment for inputs and assumptions.
At the same price, a 75% mortgage needs £62,500 — £50,000 more — and repays about £1042.19 a month, roughly £277.91 less.
UKCalc calculation — see 75% LTV on a £250,000 property: deposit, loan and monthly repayment for inputs and assumptions.
Stepping from a 5% to a 10% deposit means £12,500 more paid upfront and about £69.48 a month less in mortgage payments on the same terms.
UKCalc calculation — see 90% LTV on a £250,000 property: deposit, loan and monthly repayment for inputs and assumptions.
What UKCalc calculated
95% LTV on a £200,000 property: deposit, loan and monthly repayment
£10,000 deposit, £190,000 loan, £1056.08 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £200,000
- loan-to-value 95%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
90% LTV on a £200,000 property: deposit, loan and monthly repayment
£20,000 deposit, £180,000 loan, £1000.50 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £200,000
- loan-to-value 90%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
85% LTV on a £200,000 property: deposit, loan and monthly repayment
£30,000 deposit, £170,000 loan, £944.92 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £200,000
- loan-to-value 85%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
75% LTV on a £200,000 property: deposit, loan and monthly repayment
£50,000 deposit, £150,000 loan, £833.75 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £200,000
- loan-to-value 75%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
95% LTV on a £250,000 property: deposit, loan and monthly repayment
£12,500 deposit, £237,500 loan, £1320.10 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £250,000
- loan-to-value 95%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
90% LTV on a £250,000 property: deposit, loan and monthly repayment
£25,000 deposit, £225,000 loan, £1250.62 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £250,000
- loan-to-value 90%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
85% LTV on a £250,000 property: deposit, loan and monthly repayment
£37,500 deposit, £212,500 loan, £1181.14 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £250,000
- loan-to-value 85%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
75% LTV on a £250,000 property: deposit, loan and monthly repayment
£62,500 deposit, £187,500 loan, £1042.19 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £250,000
- loan-to-value 75%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
95% LTV on a £300,000 property: deposit, loan and monthly repayment
£15,000 deposit, £285,000 loan, £1584.12 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £300,000
- loan-to-value 95%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
90% LTV on a £300,000 property: deposit, loan and monthly repayment
£30,000 deposit, £270,000 loan, £1500.75 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £300,000
- loan-to-value 90%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
85% LTV on a £300,000 property: deposit, loan and monthly repayment
£45,000 deposit, £255,000 loan, £1417.37 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £300,000
- loan-to-value 85%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
75% LTV on a £300,000 property: deposit, loan and monthly repayment
£75,000 deposit, £225,000 loan, £1250.62 a month
- Method
- Deposit is the property price less the loan. The monthly repayment is the standard capital-and-interest annuity payment on the loan at the stated rate and term, computed by the governed UKCalc engine.
- Inputs
- property price £300,000
- loan-to-value 75%
- scenario rate 4.5%
- term 25 years
- Assumptions
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
- Check it
- Run this yourself
Assumptions and scope
- A 4.5% annual rate over 25 years on a capital-and-interest basis. This is a UKCalc modelling scenario, not a market quote, not an offer and not a forecast. Real pricing varies by lender, product, LTV band, term and individual circumstances.
- The same rate is applied at every LTV so the table isolates the effect of the deposit. Lenders price LTV bands differently in reality, which is a separate effect and is discussed in the article.
- Repayment (capital and interest), not interest-only.
- Excludes lender, broker, legal and survey fees, buildings insurance and any ground rent or service charge.
Change any of these and the result changes. They are stated so the figure can be checked rather than taken on trust. How UKCalc produces its figures: methodology.
UKCalc's interpretation
The section below is UKCalc's analysis. It is separated from the facts above deliberately: it is arguable, and the facts are not.
This is a cash-flow comparison, not a claim that either option is economically better. On these scenario terms, £50,000 more deposit buys £277.91 a month less in mortgage payments. The larger deposit is not spent: it becomes housing equity from the outset, and it also carries an opportunity cost, because money held as equity is not available for anything else. Which option is preferable depends on facts this table does not contain.
UKCalc's reading of the evidence above, not a statement by any source.
A rising share of high-LTV and high-loan-to-income lending is consistent with buyers stretching to enter the market, but the Bank of England data describes the composition of lending rather than the reason for it, and does not on its own show whether borrowers are under more strain.
UKCalc's reading of the evidence above, not a statement by any source.
This table deliberately holds the interest rate constant across every loan-to-value so the deposit effect can be seen on its own. In the market, higher-LTV products are typically priced above lower-LTV ones, so a real comparison would show a larger monthly gap than this one does.
UKCalc's reading of the evidence above, not a statement by any source.
What happens next
The Monetary Policy Committee announces its next Bank Rate decision on 17 September 2026. Bank Rate is not the same thing as a mortgage rate, and a change in one does not move every product by the same amount.
Questions this answers
- How much deposit do I need for a £250,000 house?
- What is the difference between a 95%, 90%, 85% and 75% LTV mortgage?
- How much more does a smaller deposit cost each month?
- What does a 95% mortgage cost compared with a 75% mortgage?
- How long does a larger deposit take to pay for itself?
- Are more UK buyers using 90% LTV mortgages in 2026?
Sources
- Bank of England — Mortgage Lenders and Administrators Statistics — 2026 Q2 · 8 September 2026
- Bank of England — Bank Rate
Statutory figures belong to the body that publishes them. UKCalc compiles and verifies them, and any calculation built on top is UKCalc's own — see the governed rates reference.