Mortgage on a £300k House with a £30k Deposit

The Short Answer

A £300,000 property with a £30,000 deposit means borrowing £270,000 at 90% loan-to-value (LTV). On a 25-year repayment mortgage at today's best rates, you'd pay roughly £1,435 to £1,490 per month depending on the deal you secure.

What Does 90% LTV Mean for You?

Loan-to-value is the percentage of the property's price you're borrowing. With a £30,000 deposit on a £300,000 home, your LTV is 90%. This matters because lenders charge higher rates for higher LTV brackets — you're borrowing a larger share, so they see more risk.

Best Rates at 90% LTV Right Now

The Bank of England base rate sits at 3.75% as of February 2026, with the rate decision on 5 February expected. Competition among lenders has driven 90% LTV rates to their lowest in over two years.

Rates as of early February 2026. Source: Moneyfacts, Which?, Rightmove. Rates change frequently.

What Salary Do You Need?

To borrow £270,000, lenders typically need your household income to be high enough under their salary multiple. Here's how the numbers break down:

• 4x multiple — You'd need a household income of £67,500. Common with high-street lenders and cautious affordability checks.
• 4.5x multiple — You'd need £60,000. This is the most common multiplier used by the majority of UK lenders.
• 5x multiple — You'd need £54,000. Available from some lenders with clean credit and low existing debts.
• Joint application — Two earners on £30,000 each would give you £60,000 combined, comfortably qualifying at 4.5x.

Run Your Own Numbers

Adjust the deposit, term, and interest rate below to see how your monthly payments change. The defaults are set for a £300k property with a £30k deposit at current 90% LTV rates.

Stamp Duty on a £300,000 Property

Your stamp duty bill depends on whether you're a first-time buyer. Following the April 2025 threshold changes, here's what you'd pay:

Rates apply to England and Northern Ireland. Scotland and Wales have separate systems. Additional property surcharges apply for buy-to-let or second homes.

The True Cost Beyond Monthly Payments

Your mortgage repayment is the biggest ongoing cost, but there are upfront expenses to budget for when buying a £300k home:

Should You Pay a Product Fee for a Lower Rate?

At 90% LTV, the difference between the best fee-charging and fee-free rates is meaningful. Here's a comparison over a 5-year fixed term on a £270,000 mortgage:

Should You Wait and Save a Bigger Deposit?

Dropping from 90% to 85% LTV (£45,000 deposit) would unlock noticeably better rates. But saving an extra £15,000 while renting isn't free either. Here's the trade-off:

• 85% LTV rates are ~0.3–0.5% lower. On £255,000, that could save £50–£80/month, or £3,000–£4,800 over the initial fixed term.
• But you'll pay rent while saving. At £1,200/month rent, an extra year of saving costs £14,400 in rent you won't get back. The maths doesn't always favour waiting.
• House prices may rise. If property prices grow by 3–4% annually, a £300k house could be £309k–£312k a year later, wiping out most of your extra savings.

For most buyers, 90% LTV with a 10% deposit is a solid entry point — especially at today's rates. You can always remortgage to a lower LTV band once you've built equity.

6 Ways to Get the Best Deal at 90% LTV

1. 1

   Compare total cost, not just rates

   A 4.10% rate with a £995 fee can be more expensive than a 4.20% fee-free deal over the fixed period. Always calculate the combined cost of interest payments plus fees.

2. 2

   Use a whole-of-market broker

   Brokers can access deals not available directly and know which lenders are most competitive at 90% LTV. Most fee-free brokers are paid by the lender.

3. 3

   Get a mortgage in principle first

   A mortgage in principle (or agreement in principle) shows sellers you're a serious buyer and confirms roughly how much you can borrow. It usually involves a soft credit check.

4. 4

   Clean up your credit file

   Check your file with Experian, Equifax, and TransUnion. Fix any errors, register on the electoral roll, and keep credit utilisation below 30%. Even small improvements can matter at 90% LTV.

5. 5

   Clear existing debts before applying

   Credit cards, car finance, and personal loans reduce your borrowing capacity. Paying down £200/month in debt could increase what you're offered by £30,000–£40,000.

6. 6

   Consider a longer fixed term

   Five-year fixes at 90% LTV are competitively priced and protect you from rate rises. By the time your fix ends, you'll have built enough equity to drop into a lower LTV band at remortgage.

Why 2026 Is a Decent Time to Buy

Several factors are working in borrowers' favour right now:

• Rates are near two-year lows. NatWest, Barclays, Nationwide, and Halifax have all cut rates in early 2026 following the base rate reduction to 3.75%.
• Strong lender competition. UK Finance forecasts mortgage lending to reach £300 billion in 2026. More lenders fighting for business means better deals at every LTV bracket.
• First-time buyers pay no stamp duty. The £300,000 threshold means you keep your full £30,000 deposit for the property, not tax.
• More flexible affordability checks. The removal of the strict 3% stress test means lenders have greater discretion, which can increase the amount they'll offer you.