What is a 90% LTV mortgage
A 90% LTV mortgage allows you to borrow 90% of the money you need to buy a home.
This means you only need a 10% deposit, so they’re useful if you don’t have much savings.
LTV stands for loan to value. LTV is the ratio between the loan you take out and the value of the property.
It’s expressed as a percentage.
The highest LTV that most lenders will accept is 95%.
Lenders take into account the LTV when deciding how much they’ll lend you and what rate they’ll charge.
Best 90% LTV mortgages
Most lenders offer 90% LTV mortgages.
With so much choice it can be difficult to decide which deal’s right for you.
Before choosing your mortgage, it’s really important to make sure you know its true cost, rather than just picking the lowest rate.
This is because the lowest rate doesn’t always mean the cheapest mortgage.
The true cost is the total amount you'll pay back over the initial period. This means the interest, capital repayments and fees, minus any incentives like cashback.
If you need help finding the best 90% LTV mortgage deal speak to a mortgage broker.
They have lots of deals – Trussle, for example, works with 90 lenders who have around 12,000 deals between them.
Some lenders only offer their mortgages through brokers.
And if you go straight to a lender, they can only offer you their own mortgages.
Read our guide to learn how to compare mortgage rates and deals.
Should I get a 90% LTV mortgage
A 90% LTV mortgage could be a good idea if you only have 10% of the purchase price to put down as a deposit.
The smallest deposit you can put down is usually 5% and the recommended amount is about 20%.¹
While a 90% LTV mortgage is a great way to get on the property ladder, they tend to be more expensive.
Lenders see them as a bigger risk because you’re borrowing so much of the property’s value.
This means they’ll charge you a higher interest rate.
You might decide to save up for a bigger deposit if you want to save money in the long term.
New build mortgages 90% LTV
There are far fewer lenders who offer 90% LTV mortgages on new builds than on existing properties.
New builds are often more expensive and lenders tend to see them as a bigger risk to lend against because they don’t have a history.
Around 20 lenders currently offer 90% LTV mortgage products on new build houses.
Far fewer – around 10 – offer 90% LTV mortgages for new build flats and maisonettes.
Yorkshire Building Society, for example, offer 2 and 5 year fixed mortgages with a 90% LTV for both new build houses and new build flats.²
While Barclays offer 90% LTV products for houses and 85% LTV products for flats and maisonettes.³
Speak to a mortgage broker to find out which lender will give you the best deal for your situation.
Second home mortgages 90% LTV
You may be able to get a second home mortgage with a 90% LTV, but you won’t have much choice when it comes to deals.
Very few lenders offer second home mortgages with a 90% LTV.
Most lenders will only give you a mortgage for a second home if you’ve got a 20-25% deposit.
If you want to take out a second home mortgage with a 90% LTV you’ll face:
the standard higher 90% interest rates
stricter rules about whether you’ll get one
The second loan increases your risk as a borrower as you’ll have much more debt.
Lenders who do offer this type of mortgage include:
Buy to let mortgages 90% LTV
Lenders don’t currently offer 90% LTV buy to let mortgages.
You usually need a minimum deposit of 25% of the purchase price for a buy to let mortgage.
Some high street lenders will let you put down 20% and some specialist lenders 15%.
Deposits are higher for buy to let mortgages as lenders tend to think the loan is riskier than for a residential mortgage.
There may be times when the property is unlet, for example, or the tenants don’t pay the rent.
Remortgaging onto a 90% LTV deal
If you took out a 95% LTV mortgage, and are coming to the end of your initial deal, it’s time to remortgage to save money.
Otherwise your lender will move you onto their standard variable rate which is usually much more expensive.
If your home's gone up in value, or if you've paid off enough of your mortgage, you'll be able to remortgage to a 90% LTV deal.
This means your repayments should be lower as you’ll be borrowing less.
All mortgage guides, calculators and deals
¹ Money Advice Service: How much deposit do I need for a mortgage?
² Yorkshire Building Society New Build Properties 90% LTV
³ Barclays: New-build mortgages for intermediaries
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