Compare 90% LTV mortgages
Why are you looking for a mortgage?
Yorkshire Building Society 2 year BBR tracker
Repayment mortgage of £252,000 over 25 years, representative APRC 3.9%. Repayments: 27 months of £1,024.50 at 1.64% (bbr tracker), then 36 months of £1,271.62 at 3.75% (discount), then 237 months of £1,354.83 at 4.49% (variable). Total amount payable £395,529.53 which includes interest of £142,534.53. Completion Fee (£995) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
The Cumberland 2 year fixed remortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.8%. Repayments: 27 months of £1,035.30 at 1.73% (fixed), then 273 months of £1,315.49 at 4.09% (variable). Total amount payable £389,080.87 which includes interest of £135,081.87. Arrangement Fee (£1,999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Remortgage only.
Available in branch only.
Additional criteria may apply.
Leeds Building Society 2 year fixed
Repayment mortgage of £252,000 over 25 years, representative APRC 4.4%. Repayments: 27 months of £1,035.30 at 1.73% (fixed), then 36 months of £1,309.16 at 4.04% (discount), then 237 months of £1,453.95 at 5.29% (variable). Total amount payable £420,668.01 which includes interest of £167,669.01. Product Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 85 years
Additional criteria may apply.
Accord Mortgages 2 year discount
Repayment mortgage of £252,000 over 25 years, representative APRC 3.8%. Repayments: 28 months of £1,036.50 at 1.74% (discount), then 36 months of £1,272.01 at 3.75% (discount), then 236 months of £1,354.94 at 4.49% (variable). Total amount payable £394,580.20 which includes interest of £142,580.20. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Max age at term end: 80 years
Available via brokers only.
Additional criteria may apply.
Platform 2 year fixed cashback mortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.9%. Repayments: 27 months of £1,038.91 at 1.76% (fixed), then 273 months of £1,347.82 at 4.34% (variable). Total amount payable £397,504.43 which includes interest of £144,005.43. Product Fee (£1,499) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Max age at term end: 75 years
Minimum income £15,000
Available via brokers only.
Additional criteria may apply.
The Cumberland 2 year fixed remortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.7%. Repayments: 27 months of £1,041.33 at 1.78% (fixed), then 273 months of £1,316.13 at 4.09% (variable). Total amount payable £388,418.40 which includes interest of £135,419.40. Arrangement Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Available Direct.
Remortgage only.
Available in branch only.
Additional criteria may apply.
Digital Mortgages 2 year fixed remortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.3%. Repayments: 26 months of £1,042.54 at 1.79% (fixed), then 274 months of £1,243.23 at 3.5% (variable). Total amount payable £369,251.06 which includes interest of £115,751.06. Product Fee (£1,500) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Max age at term end: 80 years
Minimum income £16,000
Remortgage only.
Available via brokers only.
Additional criteria may apply.
Platform 2 year fixed cashback mortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.9%. Repayments: 27 months of £1,046.17 at 1.82% (fixed), then 273 months of £1,348.60 at 4.34% (variable). Total amount payable £397,413.39 which includes interest of £144,414.39. Product Fee (£999) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Wales
Are older than 18 years
Max age at term end: 75 years
Minimum income £15,000
Available via brokers only.
Additional criteria may apply.
Digital Mortgages 2 year fixed remortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.3%. Repayments: 26 months of £1,048.59 at 1.84% (fixed), then 274 months of £1,243.80 at 3.5% (variable). Total amount payable £368,964.54 which includes interest of £116,064.54. Product Fee (£900) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Max age at term end: 80 years
Minimum income £16,000
Remortgage only.
Available via brokers only.
Additional criteria may apply.
Yorkshire Building Society 2 year fixed remortgage
Repayment mortgage of £252,000 over 25 years, representative APRC 3.9%. Repayments: 27 months of £1,054.67 at 1.89% (fixed), then 36 months of £1,274.70 at 3.75% (discount), then 237 months of £1,358.10 at 4.49% (variable). Total amount payable £397,229.99 which includes interest of £144,234.99. Completion Fee (£995) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Scotland
Are resident of Northern Ireland
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Remortgage only.
Additional criteria may apply.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Guide to 90% LTV mortgages
Last updated: 29 October 2021
If you want to buy a home but can only afford to put up a deposit worth 10% of the property’s value, then you will need to take out a 90% loan to value (LTV) mortgage.
A 90% loan to value mortgage, sometimes called a 90 mortgage, is a higher loan-to-value ratio mortgage and is offered by more lenders, compared to 95% or 100% LTV mortgages. We look at how they work and what you need to be aware of.
What is a 90% mortgage?
A 90% loan-to-value ratio mortgage refers to the amount you are borrowing - so 90% - in relation to the value of the property. The difference between the two, the 10%, is the deposit you need to save and provide in order to secure the mortgage.
The higher the ratio between the borrowing amount and the value of the home, the greater the risk for any lender.
This risk is priced into the mortgage and means the interest rate offered on the mortgage will always be higher than if you were able to put down a larger deposit.
Should I get a 90% mortgage?
A 90% LTV mortgage is more expensive than a lower ratio mortgage because of the risk involved. This is why a lender will charge a higher interest rate.
This will add up over the lifetime of the mortgage and it’s likely to run into thousands of pounds extra than if you had put in a higher deposit.
A larger deposit will mean you pay a lower interest rate, and will save thousands of pounds during the typical 25 year mortgage term.
Pros of 90% mortgages
One advantage of a 90% LTV mortgage is that you will only need to provide a 10% deposit, which can help buyers to get on the property ladder sooner.
The interest rates available are likely to be lower than 95% LTV mortgage rates, although if you can save an even bigger deposit, you may be able to access even better rates. A wide range of lenders tend to offer 90% LTV mortgages in the UK.
A 90 per cent mortgage is cheaper than a 95% or 100 per cent mortgage
It means you can get on the property ladder rather than spend years having to save up more of a deposit
Once you’ve paid off some of your mortgage you can remortgage to a cheaper rate
Cons of 90 mortgages
The downside of a 90 percent mortgage is that the criteria you have to meet in order to secure a mortgage are likely to be stricter than if you were applying for a lower LTV ratio.
Lenders are very wary about the risk of negative equity and when you take out a 90% LTV mortgage, a 10% drop in house value could result in the property being worth less than the loan value.
For that reason, it can also be challenging to get a 90% LTV mortgage on a new build property. This is when you may need to speak to a specialist mortgage adviser.
You will pay a higher interest rate than if you put down a 15% or 20% deposit
Over the 25 years of the mortgage you’ll end up paying thousands more in interest
The value of your property only has to fall by 10% for it to be in negative equity
Should I take out a 90% LTV mortgage?
While taking a lower LTV ratio mortgage will probably lead to a lower interest rate and hence lower costs over the lifetime of the mortgage, you should consider your savings.
The costs of buying a property include stamp duty, solicitor’s fees and mortgage arrangement fees.
Buying a home will involve sudden and sometimes unexpected costs, like repairs or fixing small problems around your property. Therefore you should always keep a portion – typically 5% to 10% of the total property value – in reserve.
It’s also a good idea to keep 3 to 6 months’ worth of everyday household and mortgage payments in an emergency savings account.
Can first time buyers get 90% mortgages?
The UK Government runs a mortgage guarantee scheme, this means that lenders taking part in the scheme are offering mortgages which allow first time buyers to take out a home loan with a deposit of 5%.
If this is your first home then the choice of mortgages available will depend on a number of factors including the deposit you have available and the amount you are able to borrow.
Ideally, aim to save a minimum of 10% mortgage deposit which will give you plenty of options, although remember that your affordability will determine how much you can borrow.
Lenders will assess your affordability based on your salary along with your expenses and any debt you may have. The combination of the deposit and the amount a lender is willing to give you will determine the price of a property that you can afford.
A 90% LTV mortgage is cheaper than a 95% mortgage but for some first time buyers this is the only option
Can you get 90% buy-to-let mortgages?
Most buy to let mortgage lenders will insist on a minimum of a 25% deposit or 75% LTV ratio.
You are unlikely to be able to find a 90% buy-to-let mortgage as lenders have strict affordability criteria for both standard and buy-to-let mortgages. You can find out more about buy-to-let mortgages here.
Are 90% mortgages expensive?
Cheap mortgages will always be mortgages with the lowest LTV ratios as the lower the loan to value ratio, the lower risk the lender considers you as a borrower.
That said, a 90% mortgage, while more expensive than other mortgages, might still be cheaper than paying rent.
Whatever your LTV, you can increase your chances of being offered a competitive interest rate by ensuring that you have a good credit score and your credit history is up to date.
How to find the best 90 mortgages?
You can use our 90% LTV mortgage calculator to help find the cheapest mortgage offers available, however it’s worth remembering to consider all factors and not simply the cheapest option when looking for the best mortgage deal.
Think about whether you want a fixed, variable or tracker mortgage rate - depending on the option you choose, the cheapest mortgage may not be the best option for your needs.
Also pay attention to mortgage arrangement fees, as cheap mortgages often have hefty fees which can add to your overall costs.
Looking for a different LTV?
Uswitch is authorised and regulated by the Financial Conduct Authority (FRN 312850) to provide this mortgage comparison service.
Uswitch services are provided at no cost to you, but we may receive a commission from the companies we refer you to.