What is a 90% LTV mortgage?
What is a 90% LTV mortgage?A 90% LTV (loan-to-value) mortgage means borrowing 90% of the value of a property, with the remaining 10% coming from a deposit or equity built up in your existing home. 90% LTV mortgages are popular among first-time buyers as it is easier to save a 10% deposit than the amount needed for a lower LTV alternative. However, higher LTV mortgages attract higher mortgage rates, which makes them a more expensive option.
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How to work out the LTV
The way to work out which LTV mortgage you are likely to need is to calculate the amount of deposit you have available and the value of the property you would like to buy.
If you divide the mortgage amount by the value of the property, you will find the LTV. So, for a property worth £250,000, with a deposit of £25,000, the calculation is:
£225,000 / £250,000 = 0.9 (multiply by 100 = 90% LTV)
To get a better idea of the amount of deposit you are likely to require for a house purchase, read our article "How much deposit do first-time buyers really need?".
How can I find the best 90% LTV mortgage for me?
In the tables below, we have listed the best deals currently available for both first-time buyers and those remortgaging. These products act as an illustration of the interest rates you can expect to pay, the monthly payment and the fees different lenders charge. It also indicates each lender's standard variable rate (SVR), which you will be moved on to at the end of the initial deal.
To find the best deals for your specific circumstances, we have a helpful mortgage comparison tool, powered by Habito. By filling out the property value, the amount you have for a deposit and the type of product you are looking for, it will instantly show you the best mortgages for you.
Can I get a 90% LTV mortgage?
You will need to work out whether you are eligible but the criteria for eligibility changes from one lender to the next. So. another option is to contact online mortgage broker Habito* directly as their advisers will be able to guide you through the products that suit your needs and advise you on which deals you are likely to be accepted for. They can also provide you with access to deals from lenders who only accept applications through an intermediary and they won't charge you a fee for their service.
First-time buyers can find it difficult to qualify for a mortgage, especially if your affordability is tight. We have reviewed a mortgage intermediary service that specialises in first-time buyer mortgages and combines a lot of the unique solutions that are available to those trying to get onto the property ladder. Tembo* is a specialist first-time buyer mortgage broker that may be able to provide a bespoke mortgage solution for your circumstances - the advisers are knowledgeable about government schemes as well as guarantor mortgages and shared ownership schemes but will package the solution that is best suited to you.
Best 90% LTV mortgages for first-time buyers
Based on a property valued at £350,000 with a £35,000 deposit and a mortgage term of 25 years. Assuming a repayment mortgage with the fees paid upfront.
Cheapest 2-year fixed-rate 90% LTV mortgages - (First-time buyer)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Skipton Building Society | 4.98% | 6.79% | £75 |
| Nationwide | 5.04% | 7.49% | £999 |
| Bank of Ireland | 5.09% | 7.84% | £210 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year fixed-rate 90% LTV mortgages - (First-time buyer)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Skipton Building Society | 4.56% | 6.79% | £75 |
| Nationwide | 4.64% | 7.49% | £999 |
| Barclays | 4.71% | 6.74% | £1,114 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 2-year tracker rate 90% LTV mortgages - (First-time buyer)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Furness Building Society | 5.24% | 8.54% | £1,139 |
| The Cumberland | 5.24% | 7.84% | £1,129 |
| The Cambridge Building Society | 5.29% | 8.29% | £224 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Cheapest 5-year tracker rate 90% LTV mortgages - (First-time buyer)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Vernon Building Society | 6.09% | 8.10% | £719 |
| Earl Shilton Building Society | 6.14% | 7.99% | £1,304 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
Best 90% LTV mortgages for remortgaging
Based on a property valued at £350,000 with a £35,000 deposit and a mortgage term of 25 years. Assuming a repayment mortgage with the fees paid upfront.
Cheapest 2-year fixed-rate 90% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Bank of Ireland | 5.09% | 7.84% | £210 |
| Newcastle Building Society | 5.09% | 6.94% | £1,469 |
| Bank of Ireland | 5.12% | 7.84% | £2,705 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
The cheapest 5-year fixed-rate 90% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| The Cumberland | 4.78% | 7.84% | £1,129 |
| Teachers Building Society | 4.79% | 8.64% | £110 |
| Virgin Money | 4.79% | 7.99% | £1,020 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
The cheapest 2-year tracker rate 90% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 2 years | Lender fee |
| Furness Building Society | 5.24% | 8.54% | £1,139 |
| The Cumberland | 5.24% | 7.84% | £1,129 |
| The Cambridge Building Society | 5.29% | 8.29% | £224 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
The cheapest 5-year tracker rate 90% LTV mortgages - (Remortgaging)
| Provider | Initial interest rate | Rate after 5 years | Lender fee |
| Earl Shilton Building Society | 6.14% | 7.99% | £1,304 |
Rates based on a property price of £350,000 with a repayment mortgage over 25 years
What are the advantages of a 90% LTV mortgage?
- A 90% LTV mortgage can be a good option for first-time buyers who don't have the means to save a bigger deposit, particularly those looking to buy in expensive areas, where a deposit can run to tens of thousands of pounds.
- A 90% LTV mortgage works out to be less expensive than a 95% LTV mortgage and there is a wider range of products available from a greater number of lenders.
What are the disadvantages of a 90% LTV mortgage?
- As a relatively high LTV product, a 90% LTV mortgage is more expensive than lower ratio alternatives
- There is a greater risk of buyers falling into negative equity, where the mortgage is more than the value of the property, particularly in a fluctuating market
What are the alternatives to a 90% LTV mortgage?
If you are thinking of taking out a higher LTV mortgage, read our articles "Which are the best 95% LTV mortgages - and should I get one?". Meanwhile, if you have a larger deposit available, you can find the best-buy 80% LTV mortgages in our article "Which are the best 80% LTV mortgages?"
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