A 90% mortgage is when you borrow 90% of the value of the property you're buying. These are also often referred to as 90 LTV mortgages, or 10% deposit mortgages.

LTV, or the Loan-to-Value ratio, is a measure of the percentage of the property's value on which you will borrow money.

For example, if you want to buy a property worth 200,000, a 90% LTV mortgage will mean you have a deposit of 20,000 and will need a mortgage to cover the remaining 180,000.

The higher the LTV, the more interest you will end up paying.

Should I get a 90% mortgage?

Yes, a 90% LTV mortgage may be appropriate if you want to:

  • Buy your first home with a 10% deposit

  • Sell your current house and get a new mortgage to buy a new one

  • Get a new remortgage deal on your current home

A 90% mortgage can cover up to 90% of a property's value, so you will need to pay for the remaining 10% of the price yourself with either:

  • Equity in your current home, which is the share of it you own

  • A deposit, which is money you have saved up

Compare the best 90% mortgages

This comparison includes every 90% LTV mortgage you can get directly from lenders in the UK.

Work out how much they cost by checking the interest rate and what fees and charges they come with. You can then choose the cheapest 90% mortgage and apply for it online, by phone, or in one of the lender's branches.

What types of 90% mortgage can you get?

Getting your first mortgage

If you are buying your first home, you need to save up a 10% deposit to get a 90% LTV mortgage.

You can get a normal mortgage or one that is part of a scheme for first time buyers like Help to Buy.

Here is how to find a mortgage for your first home and make sure you can afford it.

Remortgaging to a 90% LTV mortgage deal

If you already own your home but want to remortgage it, you need to have 10% equity in your house to get a 90% LTV mortgage.

You can use most types of mortgage as long as they are not designed for a particular type of borrower, such as someone buying their first property.

If you own more than 10% of your property, i.e., you have over 10% equity in your home, and you are remortgaging to finance home improvements you may want to consider alternative forms of borrowing, such as a bridging loan.

Getting a 90% mortgage if you are moving home

You can get a 90% LTV mortgage if you own your house but want to buy a new one. You need equity in your current home worth at least 10% of the value of the new property.

For example, if you own 15% of a house worth 200,000, your equity is worth 30,000. If you buy a 300,000 house, you could use your 30,000 equity towards 10% of it and get a 90% LTV mortgage for the remaining 270,000.

You can top this up by saving a deposit as well. For example, if you have equity in your home worth 8% of the new property's value, you could save up a deposit for the remaining 2% in order to get a 90% mortgage.

Getting a bad credit mortgage with a 10% deposit

If your credit record makes it hard for you to find a mortgage, you can compare deals designed for bad credit.

These are specialist mortgages from lenders more likely to accept borrowers with bad credit. However, bear in mind you usually need a deposit of at least 15% to get them.

You may be able to get a mortgage of up to 90% LTV with a bad credit rating, but be prepared for a higher rate of interest.

Investing in property

You cannot usually get 90% buy to let mortgages because most need a deposit of at least 25%. You can compare buy to let mortgages here.

Should you get a 90% mortgage?

A 90% LTV mortgage is a high loan to value (LTV) mortgage. This means you are more likely to be affected by negative equity even if there is a small fall in house prices.

House prices do fluctuate, and a house purchase is a long-term financial commitment so even if you are in negative equity, it may not affect your finances.

As you pay off more of your mortgage you will find you owe less to the mortgage lender and are more likely to have expanded the amount of equity - which is the amount you own - in your home.

Taking out a repayment, rather than interest-only mortgage means you will be paying more off your mortgage and building more equity in your home.

If you are considering using a 90% LTV mortgage to finance your first home, consider trying to save up a deposit of more than 10%, as doing so will give you more access to better deals.

90% mortgages FAQs

Q

Can I get a mortgage without a deposit?

A

Yes, if you have a guarantor. You need at least a 5% deposit for other mortgages, but some come with schemes to help you buy your first home.

Q

How can I save a 10% deposit?

A

Here is how to save up for a deposit. Saving more helps your chances of being accepted and could help you get a cheaper mortgage.

Q

Does my credit record matter?

A

Yes, it will show lenders if you can keep up with repayments on a mortgage. Here is why your credit record matters.

Q

Can I afford a 10% deposit mortgage?

A

Check if you can afford one by working out how much you earn and spend. Compare this to how much buying a home will cost you.

Q

What is a higher lending charge?

A

Some lenders add a fee of around 1.5% if your deposit is less than 10%. Not every lender charges this as a separate fee.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include every mortgage in the UK you can apply for directly from the lender. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.

Last updated: 29 January, 2021