High Deposit Mortgages: How a Larger Deposit Can Unlock Better Rates and More Options
If you’ve managed to save a large deposit — first of all, congratulations! Whether it’s from years of saving, equity from a previous home, or a recent inheritance, having a high deposit puts you in a strong position when applying for a mortgage.
At Mortgage Bridge, we help clients with all kinds of deposit sizes, but we’ve seen time and time again that a bigger deposit can open more doors — from lower interest rates to greater lender choice and faster approval.
In this guide, we’ll walk you through how high deposit mortgages work, what counts as “high” in the eyes of lenders, and how to make your money work harder when buying or remortgaging.
What Is Considered a High Deposit for a Mortgage?
When we talk about a “high deposit,” we usually mean anything over 20–25% of the property’s value.
For example, if you’re buying a £300,000 home:
- A 5% deposit is £15,000
- A 10% deposit is £30,000
- A 25% deposit is £75,000
- A 40% deposit is £120,000
Once you hit the 25–40% mark, lenders typically view you as a low-risk borrower, which can unlock access to better interest rates and more competitive products.
The exact definition of “high” varies by lender, but generally, the more you can put down, the stronger your position becomes — especially in today’s competitive market.
How Does a High Deposit Mortgage Work?
A high deposit mortgage works exactly like any other mortgage — you borrow money to buy a property, but the key difference is how much you’re putting down upfront.
Lenders calculate mortgages based on something called Loan-to-Value (LTV) — that’s the percentage of the property’s price that you’re borrowing compared to your deposit.
Here’s how that looks in practice:
- 95% LTV = 5% deposit
- 90% LTV = 10% deposit
- 75% LTV = 25% deposit
- 60% LTV = 40% deposit
The lower your LTV, the lower the risk for the lender — and the better the rates you’re likely to be offered.
For example, a buyer putting down 40% may get a rate 1–2% lower than someone borrowing at 90% LTV. That difference can save thousands of pounds over the life of the mortgage.
What Are the Benefits of a High Deposit Mortgage?
Putting down a larger deposit comes with several major advantages. Here are the biggest ones:
1. Lower Interest Rates
Lenders reward low-risk borrowers with better rates. A high deposit means you’re borrowing less relative to the property value, so you’ll typically qualify for lower interest rates — saving you money each month and over the long term.
2. Access to More Lenders and Deals
With a smaller deposit, your options are more limited. But once you reach around 25% deposit or more, a wider range of lenders and exclusive products become available.
3. Smaller Monthly Payments
A bigger deposit reduces the amount you borrow, which naturally lowers your monthly repayments.
4. Better Chance of Approval
Lenders see a high deposit as a sign of financial stability, which improves your mortgage approval odds — especially if your credit history isn’t perfect.
5. Protection Against Market Changes
With more equity in your home, you’re better shielded if property values dip in the future.
At Mortgage Bridge, we help clients find deals that make the most of their high deposit — ensuring you’re not overpaying when you don’t have to.
Is There Such a Thing as Too High a Deposit?
Technically, no — but it’s important to think about balance.
If you’re putting down more than 50% of the property’s value, that’s fantastic for affordability and lender confidence, but it might not always be the most efficient use of your cash.
You might be better off keeping some funds aside for:
- Renovations or home improvements
- Emergency savings
- Investments or pension contributions
We’ll help you assess what deposit level makes the most sense for your situation — ensuring you’re comfortable financially while still securing the best possible rate.
What Deposit Levels Do Lenders Offer the Best Rates For?
Generally, lenders set their best deals around certain LTV thresholds. Here’s a rough guide:
| Deposit | LTV | Rate Band | Access Level |
|---|---|---|---|
| 5% | 95% | High rate | Limited lenders |
| 10% | 90% | Moderate | Wider options |
| 15% | 85% | Better | More choice |
| 25% | 75% | Excellent | Best rates available |
| 40% | 60% | Exceptional | Premium rates |
Once you hit 60–75% LTV, you’re in the sweet spot for competitive deals. Beyond that, rates don’t tend to drop much further — but you’ll still benefit from peace of mind and long-term stability.
How Much Can You Borrow With a High Deposit?
Even with a large deposit, lenders still calculate affordability based on your income.
Most lenders offer 4 to 5.5 times your annual income, depending on your circumstances.
For example:
- If you earn £40,000 and put down a 25% deposit on a £200,000 property, you’d borrow £150,000 (75% LTV).
- If you earn £60,000 and put down 40% on a £400,000 property, you’d borrow £240,000 (60% LTV).
Your deposit boosts your chances of approval and may allow you to stretch your borrowing slightly further within safe limits — but affordability rules still apply.
Do High Deposit Mortgages Mean You Can Borrow More?
Not necessarily — but you’ll often find it easier to borrow what you need.
A larger deposit won’t increase your income, but it does:
- Make your application more appealing to lenders
- Reduce the impact of any credit or affordability concerns
- Allow more flexibility with product choice and repayment terms
So while you might not borrow “more,” you’ll usually be offered better rates and more options for the same amount — a win in anyone’s book.
Are High Deposit Mortgages Good for People With Bad Credit?
Yes — if you have a few marks on your credit file, a high deposit can make a big difference.
Lenders are more willing to consider applicants with previous credit issues when they’re putting down a larger amount, because it reduces the risk to the lender.
At Mortgage Bridge, we regularly help clients with bad credit, defaults, or historic CCJs get approved by matching them with specialist lenders who are comfortable with higher-deposit cases.
Even a 20–25% deposit can significantly improve your approval odds if your credit score isn’t perfect.
What About High Deposit Buy-to-Let Mortgages?
If you’re buying a rental property, you’ll usually need a bigger deposit anyway — typically 25–40%.
But if you can put down more than that, lenders may offer:
- Better rental coverage ratios (so you can borrow more)
- Lower interest rates
- Access to higher-value properties
A high deposit can make your buy-to-let mortgage more profitable, as you’ll reduce your monthly costs and increase your net yield.
We’ll help you weigh up how much to invest upfront versus what to borrow, depending on your long-term goals.
Can You Get a High Deposit Mortgage if You’re Self-Employed?
Absolutely — in fact, a large deposit can make self-employed applications much easier.
Many self-employed borrowers find that lenders are cautious about variable income, but a high deposit reassures them you’re financially secure.
If you’re self-employed, lenders will usually look at:
- Two or three years of accounts or tax returns
- Business stability and profit trends
- Your overall financial health
We work with lenders who understand self-employed applicants and know how to use your high deposit to your advantage — even if your income fluctuates.
Is It Worth Putting Down a Big Deposit to Lower Monthly Payments?
If your goal is long-term affordability, then yes, absolutely.
A bigger deposit means:
- Smaller monthly payments
- Less interest paid overall
- The ability to shorten your mortgage term if you want to clear it faster
For example:
If you buy a £300,000 property at 5% interest over 25 years:
- With a 10% deposit (£30,000), monthly payments might be around £1,550.
- With a 40% deposit (£120,000), monthly payments could drop to around £950 — saving you nearly £600 every month.
That’s a huge difference, and it can make homeownership much more comfortable.
How Can Mortgage Bridge Help With High Deposit Mortgages?
Even with a big deposit, finding the right lender and deal matters just as much as it does for smaller deposits.
At Mortgage Bridge, we work with a wide range of lenders — from mainstream banks to specialist providers — and we know exactly where to look to get you the most value from your deposit.
Here’s what we do for you:
✅ Compare high deposit mortgage rates across multiple lenders
✅ Show you how much you could save with different deposit levels
✅ Access exclusive products not available on comparison sites
✅ Manage the application from start to finish, saving you time and stress
We’ll make sure your deposit is working as hard as possible, whether you’re buying, remortgaging, or investing.
If you’d like to see what kind of rates your deposit could unlock, we’re happy to run through your options and find the best fit for you.
Final Thoughts: A High Deposit Is a Powerful Advantage
A large deposit isn’t just about having more money to put down — it’s about unlocking flexibility, security, and better value.
Whether you’re aiming for lower monthly payments, faster approval, or long-term savings, a high deposit mortgage gives you real leverage with lenders.
At Mortgage Bridge, we’ll help you make the most of that advantage — guiding you to the right lender, the best rate, and a mortgage that fits your life perfectly.
Let’s explore your options together and see how far your deposit can take you.