65% LTV is completely unobtainable to most people, and definitely to most first-time buyers.
The average house price to earnings ratio in the UK is over 8x, so your 65% loan becomes 5.2x earnings, which is actually higher than the 4.5x that mortgage lenders are allowed to lend by regulation (only 15% of mortgages can be lent above this).
So let's be generous and say your 65% loan is 4.5x earnings. That means the other 35% is 2.4x earnings.
2.4x earnings is equivalent to saving something like at least 15% of your gross salary for 10 years, assuming a 7% annual investment return (which in itself is unobtainable, but lets be generous).
15% of gross salary is going to be 20-25% of take-home for most people...not exactly obtainable when you're already spending 40-50% of your take-home on rent.
When you finally get the mortgage the monthly payments might be affordable, but getting there is the problem for the vast majority.
So no, most people are still looking at 3-4% mortgages with the equity they have at hand.
