What type of 90% LTV mortgages can you get?
First-time buyer 90% LTV mortgage
If you are buying your first home, you’ll need to save up a 10% deposit to get a 90% LTV mortgage.
Once you’ve saved up enough, you can start comparing the mortgage options available to you. Work out how much each mortgage costs overall by checking the fees and charges as well as the interest rate.
Fixed-rate mortgages often have higher initial rates but offer the security of knowing that the interest rate – and your monthly repayments – will remain the same for the term of the deal, making them a good option for those on a budget.
Variable-rate mortgagestend to be cheaper, but the interest rate – and therefore your monthly repayments – can go up or down, so they may not be the right choice if money is tight.
Learn more aboutfirst-time buyer mortgages.
Remortgaging to a 90% LTV mortgage
If you already own your home and you want toremortgageit – perhaps because your existing mortgage deal is coming to an end – you can apply for a 90% LTV mortgage. As long as you have built up 10% of equity in the property (or you have the savings to top up your equity to 10% of the property value).
Remortgaging can enable you to take advantage of a cheaper rate, reducing your monthly repayments.
You can choose from fixed-rate mortgages, where the rate of interest is guaranteed for the term of the deal (usually between one and five years), and variable-rate deals, such as tracker mortgages.
With tracker deals, the rate of interest tracks a financial indicator – usually theBank of England base rate– meaning your rate and your mortgage repayments can go up or down accordingly.
Bad credit mortgage with a 10% deposit
You’re more likely to be offered a mortgage and secure the best 90% mortgage rates if you have a good credit score. If you don’t, you’re likely to find it much harder to get a mortgage – particularly if you only have a deposit of 10% of the purchase price.
That said, the likelihood of you finding a mortgage will also depend on how serious your credit issues are and when they occurred.
A specialist lender may prove a better bet than a high street bank or building society.
It may also be worth seeking the help of a mortgage broker who can help you identify lenders that are more likely to accept your mortgage application.
Find out more aboutbad credit mortgages.
Can you get a 90% LTV buy-to-let mortgage?
If you’re buying a property to rent out to others, you’ll need abuy-to-let mortgage. However, it’s unlikely you’ll get accepted for a buy-to-let mortgage if you only have a deposit of 10%, as most buy-to-let lenders require a deposit of at least 25% of the home’s value.
In some cases, you may find a buy-to-let mortgage provider that will lend to you if you have a deposit of 20%. Having a good credit score and a high income will improve your chances of being accepted for such a deal.
What type of 90% LTV mortgages can you get?
First-time buyer 90% LTV mortgage
If you are buying your first home, you’ll need to save up a 10% deposit to get a 90% LTV mortgage.
Once you’ve saved up enough, you can start comparing the mortgage options available to you. Work out how much each mortgage costs overall by checking the fees and charges as well as the interest rate.
Fixed-rate mortgages often have higher initial rates but offer the security of knowing that the interest rate – and your monthly repayments – will remain the same for the term of the deal, making them a good option for those on a budget.
Variable-rate mortgagestend to be cheaper, but the interest rate – and therefore your monthly repayments – can go up or down, so they may not be the right choice if money is tight.
Learn more aboutfirst-time buyer mortgages.
Remortgaging to a 90% LTV mortgage
If you already own your home and you want toremortgageit – perhaps because your existing mortgage deal is coming to an end – you can apply for a 90% LTV mortgage. As long as you have built up 10% of equity in the property (or you have the savings to top up your equity to 10% of the property value).
Remortgaging can enable you to take advantage of a cheaper rate, reducing your monthly repayments.
You can choose from fixed-rate mortgages, where the rate of interest is guaranteed for the term of the deal (usually between one and five years), and variable-rate deals, such as tracker mortgages.
With tracker deals, the rate of interest tracks a financial indicator – usually theBank of England base rate– meaning your rate and your mortgage repayments can go up or down accordingly.
Bad credit mortgage with a 10% deposit
You’re more likely to be offered a mortgage and secure the best 90% mortgage rates if you have a good credit score. If you don’t, you’re likely to find it much harder to get a mortgage – particularly if you only have a deposit of 10% of the purchase price.
That said, the likelihood of you finding a mortgage will also depend on how serious your credit issues are and when they occurred.
A specialist lender may prove a better bet than a high street bank or building society.
It may also be worth seeking the help of a mortgage broker who can help you identify lenders that are more likely to accept your mortgage application.
Find out more aboutbad credit mortgages.
Can you get a 90% LTV buy-to-let mortgage?
If you’re buying a property to rent out to others, you’ll need abuy-to-let mortgage. However, it’s unlikely you’ll get accepted for a buy-to-let mortgage if you only have a deposit of 10%, as most buy-to-let lenders require a deposit of at least 25% of the home’s value.
In some cases, you may find a buy-to-let mortgage provider that will lend to you if you have a deposit of 20%. Having a good credit score and a high income will improve your chances of being accepted for such a deal.
