90% LTV Mortgages

There are plenty of 90% LTV mortgage options out there, but doing your homework before you apply for one is recommended. Here, we will 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 (June 2024), interest rates on 90% LTV residential mortgages typically start at just under 4.5%. Mortgage rates tend to be lower on fixed-rate agreements, especially ones with introductory rates periods of five years or longer.

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 independent mortgage brokers on hand to help. Choose an option below to get started:

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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.

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.