Compare 90% LTV Mortgages

A 90% LTV mortgage is a financial product where the loan-to-value (LTV) on a new mortgage covers 90% of the value of a property, provided by the lender. The remaining 10% is paid up-front by the borrower as a deposit.

Yes. Lower deposit deals, including 10% deposit mortgages, are generally targeted at first time buyers.

First time buyers can find it more difficult to save a large deposit, while 95% LTV deals can offer relatively high interest rates. 10% deposit mortgages can therefore be a useful middle ground.

Yes. However, many lenders will see new-build properties as more of a lending risk. Older properties have a history, so lenders can be more confident in their structural integrity and durability. You may find that it is harder to find a 90% LTV mortgage for a new-build property, or that the options available have relatively high interest rates.

Despite this, there are some lenders offering 10% deposit mortgages on certain new build properties.

It is highly unlikely you would be able to purchase a buy-to-let property with a 90% LTV mortgage.

Most lenders have lower minimum LTV requirements for buy-to-let purchases than for standard house purchases, and a 25% minimum deposit is common. It may still be possible, but you would likely need to have an established property portfolio and speak to a specialist broker.

Yes, you may be able to remortgage to a 90% LTV deal. If you originally took out a fixed-term mortgage at 95% LTV and are now approaching the end of that fixed period, you may find that your LTV has gone down.

By making your monthly repayments you are reducing the value of your debt, while the value of your home may have risen. If you now find that your debt is 90% of the value of your house, you can likely access 90% LTV mortgages with a better rate than your existing 95% LTV deal.

This also works the other way around. If house prices drop, you may find the difference between the value of your home and your loan is not as great as it used to be. When you try to remortgage, you could find that you can no longer access a low LTV deal.

You can use our mortgage comparison tool to compare 90% LTV mortgages and find the right deal for you.

The mortgage comparison tool will show which deals are available with their respective interest rates, lending fees, monthly cost and more. You might find the lowest interest deal is best for you, or the one with the lowest fees.

Think about your current financial situation, how long you want your fixed term to be and how long you will need to pay back the whole mortgage. Also be aware of early repayment charges.

An LTV of 90% on a mortgage means a borrower spends less time saving up to buy a property than they would have to on a mortgage requiring a larger deposit, for example, 80%. It reduces the upfront deposit costs as a result, allowing them to buy a property sooner rather than later, but the cost of the loan and fees may well be higher than if you save a bigger deposit.

First-time buyers are generally most likely to benefit from a 90% LTV on a mortgage, as this means having a smaller deposit to save up for. This allows them to buy their first home sooner.

Yes. As the lender is required to provide a large contribution in a financial sense, they will wish to mitigate risk if a borrower defaults. As a result, they will likely require a higher rate of interest to be paid on the mortgage for the duration of the loan term to compensate.

It’s hard to find a mortgage with an LTV higher than 95% on the market, as higher LTVs require such a great financial commitment from lenders. While some 100% mortgages are available, these require a close relative or friend to act as a guarantor, who will make the mortgage repayments if you can no longer afford to do so, or provide some form of security until the loan drops to a certain level.

Yes. Even if your deposit is low, you will need to have a good credit score to prove to your provider that you are capable of paying back the mortgage on a regular basis. With a lower credit score, fewer providers will be willing to lend, and those who are willing will charge a higher level of interest.

NerdWallet has a mortgage comparison tool to help you determine which 90% LTV mortgage will be most suitable for your requirements. Just answer a few quick questions, and it will search the whole market to find deals to suit you.

Interest is cumulative and accrues for the duration of your mortgage term. Mortgages are significant financial commitments, often being paid back over years or even decades. The longer the term lasts for, the greater the volume of interest payments you will need to account for.

This depends on whether you opt for a fixed- or variable rate mortgage. Some providers offer 90% LTV mortgages that keep the interest rate fixed for a period of time, keeping costs predictable and easy to account for.

You should expect your mortgage interest costs to fluctuate from month to month on a variable rate mortgage, as they will be moving in tandem with market rates based on what other lenders provide, as well as the base rate set by the Bank of England.

If you have higher levels of cash flow than expected, it should be possible to start making early repayments on your mortgage, to reduce the number of payments left in the long-term. However, many lenders have an early repayment charge (ERC), so make sure to check how much this might cost first, before making any agreements. Typically, lenders will also set a maximum limit on how much you can overpay in any given year.

f you are unable to save 10%, you may be able to take out a 95% LTV deal, especially if you are a first-time buyer. Alternatively, if you can save more than 10% you will likely find an 80% LTV product offers a lower interest rate and cheaper monthly repayments.

While there are 100% LTV mortgages available, they will require a guarantor.

Saving a significant deposit can be tough, but there are ways to improve your saving strategy and increase your house budget.