The best mortgage rates, whatever your deposit

It doesn't matter what you have upfront, you can still get a great deal

Since the mortgage market imploded in 2008 getting a homeloan has been all about the deposit.

Your loan-to-value (LTV) ratio -- the mortgage amount as a proportion of the property's value -- is key to getting hold of the best deal. A small LTV is the new black.

Of course, it’s always been better to have a large deposit or equity and, in the good old days (or the bad old days depending on your perspective), the level of your deposit still made a difference to the rate you could access.

Just not as much of a difference as it does now!

Cheap but inaccessible

The global financial meltdown sent the Bank of England Base Rate tumbling to 0.5%, making many mortgages cheaper to service. Combined with the fact that house prices fell in 2008, affordability became much less of a problem. Indeed in January this year the Council of Mortgage Lenders noted that the amount of their income buyers spend on mortgage interest payments dropped to just 10.6% -- a five-year low.

But while affordability may no longer be a significant stumbling block for some, having the required deposit now is.

100% mortgages are gone, 95% deals are available but with such restrictive criteria they are barely there, and 90% mortgages are now pretty much the entry point.

At every deposit tier more and more deals become available so it will definitely pay off to save that little bit more if at all possible. It’s not as if house prices are rocketing (despite a small rise in prices in March reversing the drop in February according to Nationwide), so it might pay to bide your time and increase your deposit.

If you do want to buy now, what’s the best mortgage deal depending on your deposit?

Small deposit – 10%-15%

If you only have a 10% deposit, the mortgages available are the most expensive on the market, but the best buys are much cheaper than the average rates, so it really pays to shop around for a good deal tailored to your needs.

For example, NatWest offers a fee-free tracker at 4.69% but it is only available to first-time buyers. Saffron Building Society’s competitive three-year fix at 5.89% is available to all home movers but is geographically restricted for first-time buyers (see table).

If you can muster 15% things look a lot more attractive with deals under 3%, like Leek United’s two-year discounted rate with a tiny £195 fee and £250 cashback. You can even fix for two years at 4.49% with The Co-op Bank with an arrangement fee of £999.

Below are the best mortgages available right now if you have a modest deposit:

*open to all homebuyers, although first-time buyers must come from Saffron branch area of Essex, Hertfordshire, Cambridgeshire, Suffolk, Norfolk and London where the postcode starts with E.

Decent deposit – 20% to 25%

A larger deposit will really make a difference to the deals you can get as you begin to enter the competitive homeloan zone.

With 20% upfront more deals open up to you and, while the best buy rates are only slightly cheaper than you would get with 15% upfront, you have a lot more choice. The Post Office’s two-year fix at 4.15% for those with 20% upfront is a cracking deal and comes with a fee of £999.

Once your deposit reaches a quarter of the property’s value you can get your hands on some of the most competitive deals in the mortgage market. Borrowing up to 75% LTV gives you access to hundreds more deals.

Choose from a good range of tracker deals at less than 3% and fixes starting from 3.19% from The Co-op Bank (with a £999 fee).

Chunky deposit – 30% plus

If you do have a large amount upfront, for example if you have owned your home for a long time and have substantial equity, you really get to take your pick.

Lenders still reserve their cheapest deals for those with 30% and 40%-plus upfront. Frankly you get to choose from pretty much the whole mortgage market.

HSBC has taken fixed rates at this LTV tier below 3% with its 2.99% fixed for two years, and variable deals under 2% with its 2-year discount -- both have a fee of £999.

First Direct, Yorkshire Building Society and Santander also have some stonking deals for those who can raise the biggest deposits. They consider you to be the lowest risk customers and reward you with their very best mortgage deals.

More: House prices grinding to a halt | Buy-to-let investors are drowning in debt