Compare 90% LTV Mortgages

If you want to put down a deposit of 10% on a property purchase then you will need a mortgage with a loan-to-value (LTV) of 90%. Compare mortgage rates, lenders and deals for 90% LTV mortgages.

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Information written by Brean Horne Last updated on 12 January 2022.

What is a 90% LTV or 10% deposit mortgage?

90% LTV mortgages are the same as 10% deposit mortgages. It means that 90% of the money comes from the lender and 10% comes from the buyer.

For example, if you are looking to buy or remortgage a £300,000 home with a 90% mortgage, you will need a deposit of £30,000, which is 10% of the value of the property

Mortgage providers will offer mortgages at different levels of LTV, with higher interest rates for higher LTVs.

Are 90% LTV and 10% deposit mortgages available in the UK?

Yes. You can use our comprehensive mortgage comparison tool to see a host of deals for prospective homebuyers with a 10% deposit.

Mortgage interest rates and fees will vary from lender to lender, so it is important to look at a variety of deals to get an idea of which is right for you.

Can I get a 90% mortgage?

To qualify for a 90% LTV mortgage you will need to have saved up a 10% deposit. Mortgage providers may still lend to you if you have a smaller deposit, but these mortgages will likely come with a higher interest rate.

However, saving enough money for the deposit is only the first step to a 90% mortgage. You will also need to pass your prospective lender’s affordability checks, as well as fall within their required age range. Most lenders will also require proof that your deposit, or a certain proportion of it, is from your own savings rather than part of a conditional gift.

For example, saving a deposit of £40,000 is no guarantee you will be eligible for 90% mortgages on £400,000 a property. To borrow £360,000, your household earnings will likely need to be at least £80,000, as lenders typically only lend up to four-and-a-half times an applicant’s annual salary. Your lender may also have other requirements you need to meet.

What are the benefits of a 90% LTV mortgage?

The larger your deposit, the lower your monthly repayments. Therefore, monthly repayments for a 90% mortgage will usually be lower than 95% LTV deals, but more than an 85% LTV option.

This is because lenders partly base the interest rates they charge on your LTV. If you can save up for a larger deposit and then choose a mortgage with a lower LTV, you should be able to access a lower interest rate.

You can use our mortgage comparison tool to compare 90% mortgages and find the lowest interest rates, but you will likely be able to access a cheaper deal if you can save a larger deposit and compare 85% LTV mortgages.

What are the risks of a 90% LTV mortgage?

The major risk with any mortgage is negative equity. This is when the balance of your loan exceeds the value of your home. The smaller your deposit, the less your property value will need to drop by to leave you in negative equity.

With a 90% LTV mortgage, you will owe the bank 90% of the value of your home when you buy it or remortgage. If the value then drops by more than 10%, you will be in negative equity. If your LTV is a lower figure such as 80%, your home would need to drop in value by at least 20%.

Negative equity is a risk to you, as it would mean you will struggle to sell the property or remortgage, but also to the lender. If your home is worth less than your debt, the lender could not recover the debt from selling your home if you default.

With lower deposit mortgages, including 90% mortgages, lenders will be wary of negative equity and so may have stricter affordability criteria.

90% LTV Mortgages FAQs

What is a 90% LTV mortgage?

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.

Can you get a 90% mortgage as a first-time buyer?

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.

Can you get a 90% LTV mortgage on a new-build property?

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.

Can you get a 90% LTV buy-to-let mortgage?

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.

Can I remortgage to a 90% LTV mortgage?

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.

How do I choose the best 90% LTV mortgage?

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.

Why apply for a 90% LTV mortgage?

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.

Who are 90% LTV mortgages best suited for?

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.

Do 90% LTV mortgages carry higher costs?

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.

What’s the highest LTV I can find on the market?

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.

Does a credit score matter on a 90% LTV mortgage?

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.

Where can I compare the best 90% LTV mortgages?

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.

Why does interest matter on a 90% LTV mortgage?

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.

Can interest vary on 90% LTV mortgages?

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.

What would a variable rate mortgage mean?

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.

Can I repay my 90% LTV mortgage early?

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.

What are the alternatives to a 90% LTV or 10% deposit mortgage?

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.

About the author:

Brean is a personal finance writer at NerdWallet. She covers a range of financial topics and has written for consumer titles including Which?, Moneywise and The Motley Fool. Read more

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