If you're in the enviable position where you can make a 50% deposit on a house, you'll soon find you have the pick of the bunch when it comes to getting the best mortgage 50% LTV deal.
Of course, even though a 50% down payment puts you in a strong position you still need to be careful when making a 50% mortgage comparison.
Remember, your lender still wants to make money from the deal. Here's our advice for making sure you get your hands on the cheapest and best 50% loan to value mortgages.
The lowdown on low LTV mortgages
The loan to value (LTV) mortgage ratio refers to how much cash your provider lets you borrow as a loan compared to the house's value.
The less you want to borrow, the happier your creditor will be as there's less danger to them of losing a lot of money.
However lenders still do their due diligence even if you have a large deposit to stick down. Likewise you should do your own affordability check to make sure you can meet the ongoing payments.
It's actually unlikely the majority of first time buyers will be able to stick down such a hefty down payment, but if you can then a high deposit mortgage could save you a lot in interest payments.
More likely, if you've built up equity in your current home and you're looking to move then any profit on its sale can help boost your deposit for mortgage number two.
If you want to stay put, albeit on a better mortgage deal, you can think about remortgaging. You won't have to worry about putting down another deposit because you already own the house; instead your remortgage simply needs to be under 50% of your home's value AND enough to pay off your outstanding mortgage.
If you shop around and compare 50% LTV mortgages, you can drive down your monthly payments and pay less interest overall - whether that's to buy a new home or remortgage on an existing property.
Interest rates on less than 50% LTV mortgages
When it comes to making a decision on how you want to make those nice monthly repayments, you basically have to choose between playing it safe or taking a calculated gamble.
If you choose safety, you might want to take a look at 50% LTV fixed rate mortgages. If taking a punt on potentially smaller payments is your thing, a variable mortgage might be your best bet.
Fixed rate mortgages
Fixed 50% deposit mortgage rates stay the same each month for however long the initial interest period lasts. You'll pay the same amount back each time, at the agreed rate, meaning you are not vulnerable to base rate interest rate hikes.
Fixed rates will work for you if rates start to climb elsewhere, but you won't feel the benefit of any fall in interest rates either. If it's stability you want - so you can budget - you might not be bothered by this.
Lenders offer different kinds of variable mortgages, but the important point is that what you pay can change from one month to the next - guided to a greater or lesser extent by the Bank of England base rate.
Options include Standard Variable Rate mortgages, which use the lender's own in-house rate at any given time, and tracker mortgages which add a fixed margin onto the general Bank of England base rate (e.g. your interest always 'tracks' at 2% above).
While general rates are low you could end up paying under the odds. If the market suddenly picks up and they increase, you might end up paying more than your neighbour who picked a fixed rate. It's about judging and playing the market, if you are willing to take that risk.
How to compare the best mortgage rates 50% LTV
Using our table you can see what deals banks and building societies are offering to those looking for 50% or 60% LTV mortgages, both in terms of rates and duration.
While some lenders will be offering what at first glance seem to be very attractive rates, remember to look at the finer details, such as how long the initial rate will last and what extra costs there are.
Initial rates can last for between two and five years on a typical 25-year loan, so when comparing 50% LTV mortgages you need to look beyond that period.
What rates does the mortgage move onto thereafter and are you organised enough to switch? What does that make the overall rate, taking into account the initial period?
If you take the best rates available, chances are the mortgage provider might also charge a product fee for doing so. This might costs hundreds of pounds, so weigh up how much you are willing to pay and work out if the fee has a significant impact on the rates offered.
To find the cheapest and best mortgage deals, shop around and compare what each company is offering against your finances.