Advertisement

90% LTV Mortgages

The higher the deposit amount the better the rate you get. We will show you the best deals you only have access to a 10% deposit.

What LTV are you looking for?

90% Mortgages

Lender
Mortgage Name
Type
Initial Rate
Offer
Subsequent Rate
Cost for Comparison
Loan to Value
Fees
Get Quote
Nationwide Bs 2 Year Fixed £999 Fee Existing Borrowers
Fixed
2.09%
Fixed for 2 years
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 2 Year Tracker £999 Fee Existing Borrowers
Tracker
2.09%
1.59% above Bank of England base rate
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
Nationwide Bs 2 Year Fixed £999 Fee
Fixed
2.19%
Fixed for 2 years
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 2 Year Fixed £999 Fee
Fixed
2.19%
Fixed for 2 years
3.74% (variable)
3.60%
90%
£499
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 2 Year Tracker £999 Fee
Tracker
2.19%
1.69% above Bank of England base rate
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
Nationwide Bs 2 Year Tracker £999 Fee
Tracker
2.19%
1.69% above Bank of England base rate
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
Nationwide Bs 2 Year Fixed No Fee Existing Borrowers
Fixed
2.49%
Fixed for 2 years
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 2 Year Tracker No Fee Existing Borrowers
Tracker
2.49%
1.99% above Bank of England base rate
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
Nationwide Bs 2 Year Fixed No Fee
Fixed
2.59%
Fixed for 2 years
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 2 Year Fixed No Fee
Fixed
2.59%
Fixed for 2 years
3.74% (variable)
3.60%
90%
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 2.00% of loan amount redeemed to be paid within 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 2 Year Tracker No Fee
Tracker
2.59%
2.09% above Bank of England base rate
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
Nationwide Bs Ftb 2 Year Tracker No Fee
Tracker
2.59%
2.09% above Bank of England base rate
3.74% (variable)
3.60%
90%
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
TSB Direct Shared Equity 2 Year Fixed £995 Fee Purchase
Fixed
2.74%
Fixed until 31/10/2019
3.74% (variable)
3.70%
90%
£995
Call Direct0808 252 0479 Enquire
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £750,000
Shared Ownership NO
Overpayments? YES
App Fee - Application Fee can be added to loan without conditions
Early Repayment Charge 2.00% of loan amount redeemed to be paid until 31-Oct-2018; then 1.00% of loan amount redeemed to be paid until 31-Oct-2019
Nationwide Bs 5 Year Fixed £999 Fee Existing Borrowers
Fixed
2.89%
Fixed for 5 years
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 5 Year Fixed £999 Fee
Fixed
2.99%
Fixed for 5 years
3.74% (variable)
3.60%
90%
£499
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 5 Year Fixed £999 Fee
Fixed
2.99%
Fixed for 5 years
3.74% (variable)
3.60%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 5 Year Fixed No Fee Existing Borrowers
Fixed
3.09%
Fixed for 5 years
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 5 Year Fixed No Fee
Fixed
3.19%
Fixed for 5 years
3.74% (variable)
3.60%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
TSB Direct 5 Year Fixed £995 Fee Purchase
Fixed
3.19%
Fixed until 31/10/2022
3.74% (variable)
3.70%
90%
£995
Call Direct0808 252 0479 Enquire
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £750,000
Shared Ownership NO
Overpayments? YES
App Fee - Application Fee can be added to loan without conditions
Early Repayment Charge 5.00% of loan amount redeemed to be paid until 31-Oct-2018; then 4.00% of loan amount redeemed to be paid until 31-Oct-2019; then 3.00% of loan amount redeemed to be paid until 31-Oct-2020; then 2.00% of loan amount redeemed to be paid until 31-Oct-2021; then 1.00% of loan amount redeemed to be paid until 31-Oct-2022
Nationwide Bs Ftb 5 Year Fixed No Fee
Fixed
3.19%
Fixed for 5 years
3.74% (variable)
3.60%
90%
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 5.00% of loan amount redeemed to be paid within 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
TSB Direct 5 Year Fixed No Fee Purchase
Fixed
3.39%
Fixed until 31/10/2022
3.74% (variable)
3.70%
90%
No Application Fee
Call Direct0808 252 0479 Enquire
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £750,000
Shared Ownership NO
Overpayments? YES
App Fee - Application Fee can be added to loan without conditions
Early Repayment Charge 5.00% of loan amount redeemed to be paid until 31-Oct-2018; then 4.00% of loan amount redeemed to be paid until 31-Oct-2019; then 3.00% of loan amount redeemed to be paid until 31-Oct-2020; then 2.00% of loan amount redeemed to be paid until 31-Oct-2021; then 1.00% of loan amount redeemed to be paid until 31-Oct-2022
Nationwide Bs 10 Year Fixed £999 Fee Existing Borrowers
Fixed
3.79%
Fixed for 10 years
3.74% (variable)
3.90%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 10 Year Fixed £999 Fee
Fixed
3.89%
Fixed for 10 years
3.74% (variable)
4%
90%
£499
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 10 Year Fixed No Fee Existing Borrowers
Fixed
3.89%
Fixed for 10 years
3.74% (variable)
3.90%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 10 Year Fixed £999 Fee
Fixed
3.89%
Fixed for 10 years
3.74% (variable)
4.10%
90%
£999
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs Ftb 10 Year Fixed No Fee
Fixed
3.99%
Fixed for 10 years
3.74% (variable)
4%
90%
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
Nationwide Bs 10 Year Fixed No Fee
Fixed
3.99%
Fixed for 10 years
3.74% (variable)
4.10%
90%
No Application Fee
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage YES
First Time Buyers NO
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £500,000
Shared Ownership YES
Overpayments? YES
App Fee - Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge 7.00% of loan amount redeemed to be paid within 4 years; then 6.00% of loan amount redeemed to be paid for next 1 year; then 5.00% of loan amount redeemed to be paid for next 1 year; then 4.00% of loan amount redeemed to be paid for next 1 year; then 3.00% of loan amount redeemed to be paid for next 1 year; then 2.00% of loan amount redeemed to be paid for next 1 year; then 1.00% of loan amount redeemed to be paid for next 1 year
TSB Direct 10 Year Fix And Flex No Fee Purchase
Fixed
4.04%
Fixed until 31/10/2027
3.74% (variable)
4%
90%
No Application Fee
Call Direct0808 252 0479 Enquire
[+] View More
Application Criteria Fees and Charges
Existing Customers Only NO
Existing Borrowers Only NO
Remortgage NO
First Time Buyers YES
Home Movers NO
Minimum Deposit 10%
Max Mortgage Amount £750,000
Shared Ownership NO
Overpayments? YES
App Fee - Application Fee cannot be added to loan
Early Repayment Charge 5.00% of loan amount redeemed to be paid until 31-Oct-2018; then 4.00% of loan amount redeemed to be paid until 31-Oct-2019; then 3.00% of loan amount redeemed to be paid until 31-Oct-2020; then 2.00% of loan amount redeemed to be paid until 31-Oct-2021; then 1.00% of loan amount redeemed to be paid until 31-Oct-2022

Search the entire mortgage market

What is the mortgage for?

Compare Now

Your home may be repossessed if you do not keep up repayments on your mortgage. The rates and products displayed within these tables are updated on a regular basis however due to the dynamic nature of the market some product details and rates may be out of date. We therefore do not take any responsibility for the accuracy of the information supplied within the table although we will always make our best endeavour to ensure that the information provided is as accurate as possible. You should always check rates and terms with the product provider. The telephone-based mortgage advice service is provided by TurnKey Mortgages Limited. Registered office: St Crispins House, Duke Street, Norwich NR3 1PD. TurnKey Mortgages Limited are authorised and regulated by the Financial Conduct Authority. Their FCA number is 537424.

90% LTV Mortgage

LTV Explained

LTV (or loan-to-value) refers to the percentage of a loan that is underwritten to the value of an asset that is purchased. Loan-to-value is most often used by banks, building societies and other financial lenders to represent the amount they are willing to lend against the value of the asset. For example if a borrower wishes to borrow £180,000 to purchase a house valued at £200,000, the LTV would be 90%.

 

Below reveals the loan-to-value you would need to apply for the following house valuations.

 

LTV Table Examples

LTV£50k Property Value£100k Property Value£150k Property Value£200k Property Value£250k Property Value
Amount borrowed at: 100% £50,000 £100,000 £150,000 £200,000 £250,000
Amount borrowed at: 95% £47,500 £95,000 £142,500 £190,000 £247,500
Amount borrowed at: 90% £45,000 £90,000 £135,000 £180,000 £225,000
Amount borrowed at: 85% £42,500 £85,000 £127,500 £170,000 £212,500
Amount borrowed at: 80% £40,000 £80,000 £120,000 £160,000 £200,000
Amount borrowed at: 75% £37,500 £75,000 £112,500 £150,000 £187,500
Amount borrowed at: 70% £35,000 £70,000 £105,000 £140,000 £175,000
Amount borrowed at: 65% £32,500 £65,000 £97,500 £130,000 £162,500
Amount borrowed at: 60% £30,000 £60,000 £90,000 £120,000 £150,000

 

If you were interested in a property valued at £150,000 and had a deposit of £15,000, you would apply to borrow the remaining £135,000, which, as we can see from the table above, reflects a 90% LTV mortgage.

 

If you were interested in a property valued at £200,000, and you had £30,000 available for a deposit, you would need to apply for an 85% LTV mortgage worth £170,000.

 

Be sure that you factor stamp duty into your calculations! (Find out more about stamp duty here). If you are purchasing property worth over £125,000, you will face a fee of at least 1%. This can be added to the mortgage, but it may push you onto the next tier of LTV loan (e.g. 85% to 90%), which is likely to be a little more expensive.

 

Why LTV Matters: The Relationship with Cost

Higher LTV mortgages tend to be more expensive (higher interest rates) than one with a lower LTV percentage. This is due to the extra risk that a higher LTV mortgage imposes upon lenders.

 

For example, an 85% mortgage may have an interest rate of 4%, whereas the 90% mortgage might have an interest rate of 4.5%, meaning that monthly payments will be higher, all else remaining the same.

 

What Are The Risks?

Tracker Mortgages

If you take out a tracker mortgage, a rise in the base rate will lead to higher monthly payments. This is more of a risk for high-LTV mortgage holders where repayments are already more costly.

 

Before taking out a tracker mortgage at 90% LTV, it might be worth contemplating what your costs might be if rates do head upwards. See our calculator: what if rates change?

 

Rise and Fall in Value

Any rise or fall in the property value will increase or reduce the value of your deposit (as a overall percentage). Given a 90% LTV mortgage and a 10% deposit, should your home value fall by 5% it would technically leave you with a 5% deposit.

 

In a worst-case scenario, your home value could drop by more than your deposit, leaving you in negative equity (should you sell your home you would not make enough back to pay of your mortgage). This will make getting another mortgage deal more challenging.