For many aspiring homeowners, saving for a large deposit can be a major hurdle. That’s where 90% Loan-to-Value (LTV) mortgages come in. These mortgage deals allow buyers to purchase a property with just a 10% deposit, making homeownership more accessible.
In this guide, we’ll explore the best 90% LTV mortgages available in the UK, the pros and cons of choosing a high LTV mortgage, and how you can improve your chances of securing the best rates.
What Is a 90% LTV Mortgage?
A 90% LTV mortgage means that the lender provides 90% of the property’s value as a loan, while the borrower contributes the remaining 10% as a deposit. For example, if you’re buying a house worth £250,000, you’d need a £25,000 deposit, with the remaining £225,000 covered by the mortgage.
For example, with a £5,000 deposit, you would be looking at properties priced around £100,000, assuming a 95% LTV mortgage.
Who Are 90% LTV Mortgages Suitable For?
90% LTV mortgages are particularly popular with:
- First-time buyers who may not have significant savings for a larger deposit.
- Home movers who want to move to a new property without waiting to build more equity.
- Those looking to remortgage who have around 10% equity in their property.
Pros and Cons of a 90% LTV Mortgage
✅ Advantages:
- Lower deposit requirement – Ideal for buyers with limited savings.
- More lenders offering 90% LTV deals – Increasing competition means better rates.
- Faster route to homeownership – No need to save a larger deposit like15% or 20% deposit.
❌Disadvantages:
- Higher interest rates – Compared to lower LTV mortgages (e.g., 75% LTV), 90% LTV deals often come with slightly higher rates.
- Stricter affordability checks – Lenders assess your income, outgoings, and credit score more rigorously.
- Potential negative equity risk – If house prices fall, your mortgage could end up being more than the property is worth.
Best 90% LTV Mortgage Deals
Lenders regularly update their mortgage products, but some of the key providers offering competitive 90% LTV mortgages include:
- Nationwide
- Halifax
- NatWest
- HSBC
- Barclays
For the most up-to-date rates, it’s best to speak to a mortgage broker who can compare the latest deals.
How to Improve Your Chances of Getting a 90% LTV Mortgage
If you’re applying for a 90% LTV mortgage, here are some key steps to boost your approval chances and secure the best rates:
- Improve Your Credit Score – Lenders favour applicants with strong credit histories. Ensure you’re registered on the electoral roll, pay bills on time, and reduce outstanding debts. If you’re not sure of what your credit score is, look to use a service like CheckMyFile.
- Demonstrate Affordability – Keep your debt-to-income ratio low and provide evidence of steady employment and income.
- Save for Additional Costs – Factor in legal fees, stamp duty, and other home-buying costs.
- Consider a Guarantor Mortgage – Some lenders offer deals where a family member helps secure the loan.
- Use a Mortgage Broker – Brokers can access exclusive 90% LTV deals and tailor recommendations to your situation.
Final Thoughts
A 90% LTV mortgage can be an excellent choice for buyers who have a smaller deposit but still want to get on the property ladder. While these mortgages come with higher interest rates than lower LTV deals, the increased accessibility often outweighs the added cost for many borrowers.
If you’re considering a 90% LTV mortgage, speaking with a professional mortgage broker can help you navigate your options and find the best deal tailored to your needs.
At Mortgage Links, we specialise in helping homebuyers secure the right mortgage for their situation. Get in touch with us today to explore your options and take the next step towards homeownership!
If you’re considering a low-deposit mortgage, speaking with a mortgage broker can help you find the best options tailored to your situation. Get in touch with Mortgage Links today to explore how we can help you take the first step towards owning your home!
