Head of Content
Mortgage Advisor & Director
There are plenty of 90% LTV mortgage options out there, but doing your homework before you apply for one of these deals is recommended. In this guide, we’ll explain why this is the case and offer guidance on how to get the mortgage you need.
What is a 90% LTV mortgage?
A 90% LTV mortgage is a mortgage with a loan-to-value of 90%. This would mean that the borrower is buying a property with 10% deposit and borrowing the rest of the purchase price.
90% LTV mortgages are common in the UK residential market and you should have plenty of options with 10% deposit, assuming you are creditworthy and affordability is not an issue.
However, mortgage rates can sometimes be on the high side at this LTV ratio, as 5-10% of the property’s value is generally the minimum lenders will accept. The higher your LTV, the higher your rate is likely to be so the mortgage provider can reduce the level of risk.
The good news is that favourable deals are opossible, especially if you apply for your mortgage through a broker - they know how to maximise your options based on your deposit amount and sometimes have access to exclusive rates and deals.
What interest rates are available?
At the time of writing (January 2024), interest rates on 90% LTV residential mortgages typically start at around the 4.5% mark. Mortgage rates tend to be lower on fixed-rate agreements, especially ones with introductory rates periods of five years or longer.
The table below shows examples of the kind of mortgage rates you can expect right now with 10% deposit (90% LTV). Please note that these deals are subject to change.
Mortgage Lender | Interest Rates Available | Product Details |
4.41% to 6.34% | 2, 3 and 5-year fixes & 2-year trackers available | |
4.97% to 6.64% | 2 and 5-year fixes & 2-years trackers available | |
4.85% to 6.35% | 2 and 5-year fixes & 2-years trackers available | |
4.43% to 6.38% | 2 and 5-year fixes & 2-years trackers available |
How to compare 90% LTV mortgages
You can compare rates and deals for 90% LTV mortgages from lenders across the market for free on Teito. Our user-friendly service lets you choose the mortgage you want in real time, and we have a network of independent mortgage brokers on hand to help.
Once you have selected a deal that fits your needs, you can take advantage of a free, no-obligation chat with one of our advisors, during which you will receive bespoke advice and guidance to see you through the application process - get started here.
Can you get approved with bad credit?
Yes but your options will be more limited if you have a history of bad credit and need a 90% LTV mortgage. There are specialist adverse credit mortgage lenders, but many of their mortgage deals typically have higher deposit requirements, starting at around 15%.
There are, however, a few specialist mortgage providers such as Kensington who offer 90% LTV deals, although the rates are likely to be higher under these circumstances.
Your chances of qualifying for a bad credit mortgage with 10% deposit will improve if:
- Your credit issues are minor in severity, such as a late payment
- They occurred a long time ago (3-6 years)
- You have a good explanation for them (e.g. an unexpected life event)
- Your financial conduct has been good since they occurred
It is recommended that you speak to a mortgage broker if you are applying for a bad credit mortgage with 10% deposit, as your options might otherwise be limited.
Getting a second home mortgage with 10% deposit
The minimum amount of deposit you would need to buy a second residential property is 10% (90% LTV), but your choice of lenders will be much higher with 20-25% deposit.
If you are remortgaging your current home to raise funds to put towards a deposit on a second home, there are lenders who will let you remortgage at 80-90% for this purpose, although the average LTV requirement you can expect for this purpose is 75-85%.
Remortgaging at 90% LTV
There are remortgage deals available at 90% LTV and higher but you may need more equity than this if you are planning to release capital for a specific purpose. For example, borrowers who are remortgaging to consolidate debt typically need an LTV of 60-85%.
Calculate the repayments on a 90% LTV mortgage
To work out what your monthly repayments will look like, first deduct your 10% deposit from the property value to arrive at the amount you need to borrow. Enter this amount into our calculator below along with an interest rate and term length to get some quick results.
Get your mortgage in principle certificate in 5 minutes
Why choose Teito for your mortgage needs?
You can compare rates and deals for 90% LTV mortgages for free on Teito and access support from one of our expert mortgage brokers if you need a little help.
Here are just some of the reasons why our customers choose us:
- You can access 90% LTV mortgage rates in seconds
- Our brokers can offer bespoke advice based on deposit amount
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and take advantage of a free no-obligation chat with a mortgage broker who specialises in finding 90% LTV deals? Get started here.
FAQs
Can I get a 90% LTV buy-to-let mortgage?
Not usually as buy-to-let mortgage deposit requirements typically start at 20% of the property’s value (80% LTV). If you have 10% saved up, though, there could be options to consider that could help you get eventually approved for a mortgage. See our standalone guide to low deposit buy-to-let mortgages for further information on this.
Can I get a commercial mortgage with 10% deposit?
Commercial mortgage deposit requirements are usually between 20% and 40% of the property’s value (or 60-80% LTV). But as commercial lending is unregulated, lenders have the flexibility to approve 90% LTV deals on a case-by-case basis, but the investment would have to be strong enough to convince them that it is worth taking on the risk.
Can I get a 90% LTV interest-only mortgage?
Deposit requirements from interest-only mortgages are typically higher than capital repayment mortgages and start at 25% (75% LTV) at most lenders. Specialist lenders, however, may consider a 90% LTV agreement if the mortgage is part-and-part.
Part-and-part mortgages are a hybrid of capital repayment and interest-only. You can read more about them in our dedicated guide to part-and-part mortgages.
Are there any 90% LTV schemes for first-time buyers?
Many mortgage lenders have a specific product range aimed at first-time buyers with 90% LTV, but if you’re concerned you might not be able to get a competitive deal, there are schemes first-time buyers can apply for to boost their chances of approval.
Firstly, there is Shared Ownership, which could be an option if affordability is your biggest concern. It’s a middle ground between buying and renting which involves paying rent to a local authority or housing association for the share of the property you won’t own.
It is possible to increase your state in the property over time, all the way up to 100% ownership, through a process called staircasing.
Secondly, if you are living in a council or local authority property and want to buy it, the Right to Buy scheme offers a discount on the purchase price to make that 10% deposit go further.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 21 February 2024