90% LTV mortgages (10% deposit)

A 90% Loan-to-Value (LTV) mortgage is designed for home buyers who want to purchase with a smaller deposit. Instead of putting down 20% (or more), you typically provide a 10% deposit and borrow the remaining 90% of the property’s value.

Because you’re borrowing a larger share of the purchase price, 90% LTV mortgages often involve more scrutiny around affordability and risk than lower-LTV options.

What is a 90% LTV mortgage?

Loan-to-Value (LTV) is the mortgage amount expressed as a percentage of the property value.

With a 90% LTV mortgage:

• You borrow 90% of the property’s value
• You provide a 10% deposit

Example: If you buy a home for £250,000

• Mortgage (90%): £225,000
• Deposit (10%): £25,000

Why 90% LTV is considered “high LTV”

90% LTV sits towards the higher end of the market. From a lender’s perspective, higher LTV lending can carry more risk—particularly if property values fall or if your circumstances change.

As a result, 90% LTV mortgages may be associated with:

• More detailed affordability assessments
• Tighter lending criteria
• A narrower range of deals at certain times

Can you get a 90% LTV mortgage?

Availability depends on the lender’s criteria and how your overall application fits their policy. While requirements vary, lenders commonly look at factors such as:

Credit history

Lenders assess how you’ve managed credit in the past. A history of missed payments, defaults, or high levels of existing debt can reduce the options available.

Income and affordability

Your income needs to support the mortgage repayments under the lender’s affordability approach. This typically includes consideration of:

• Whether your income is stable and how it’s structured
• Your other financial commitments
• How repayments might be affected if interest rates rise

Outgoings and existing commitments

Even with a strong income, lenders will consider your regular spending and other obligations. Higher monthly outgoings can limit how much you can borrow.

The property and the valuation

Lenders will review the property and rely on a valuation outcome. If the valuation comes in lower than expected, it can affect the maximum mortgage amount they’re willing to offer.

Deposit and purchase costs

A 10% deposit is only part of what you’ll need. You’ll also want to budget for wider buying costs such as legal fees, surveys, and stamp duty (where applicable). Lenders expect the deposit to be credible and properly evidenced.

Lender policy and market conditions

High-LTV lending can be influenced by lender risk appetite and broader market conditions. At times, lenders may tighten criteria or adjust what they’re willing to offer.

How applying for a 90% LTV mortgage typically works

Applying for a 90% LTV mortgage generally follows the same broad stages as other residential mortgages, but affordability and risk checks are often more prominent.

1) Check what you can afford

Before you apply, it helps to estimate repayments based on the mortgage term and the type of interest rate you’re considering. This can reduce the risk of stretching your budget.

2) Consider a mortgage in principle (or similar)

A mortgage in principle can give an indication of the level of borrowing you may be considered for, based on the information you provide. It can also help you plan your deposit and search within a realistic budget.

3) Submit the full application

Once you’ve found a property, the application moves from indicative to full. You’ll typically provide documentation relating to income, employment, outgoings, and the property.

4) Valuation and survey

The lender will arrange a valuation. Depending on the property and lender requirements, you may also choose to carry out a survey to understand the condition of the home.

5) Mortgage offer and legal process

If the valuation and checks are satisfactory, the lender issues a formal mortgage offer. Your solicitor or conveyancer then progresses the legal work to completion.

6) Completion and repayments begin

After exchange and completion, you start making repayments according to the mortgage terms.

Benefits of a 90% LTV mortgage

For many buyers, the attraction of a 90% LTV mortgage is practical: it can help you buy sooner with a smaller deposit.

Potential advantages include:

• A smaller deposit requirement compared with lower-LTV options
• Buying sooner if saving a larger deposit is difficult
• Keeping savings available for other costs of purchase or moving expenses

Drawbacks and risks to consider

A 90% LTV mortgage can be a sensible route to home ownership, but it’s important to understand the trade-offs.

Common considerations include:

• Higher borrowing costs may apply: lenders may price higher LTV risk into the interest rate
• Higher monthly repayments: you’re borrowing more, so repayments can be higher than with a larger deposit
• Greater sensitivity to property value changes: if prices fall, you may have less equity than you would with a lower LTV
• Potential remortgage challenges: if your equity is limited, you may not always access the most competitive remortgage deals

90% LTV vs other deposit options

Deposit size can influence not only how much you borrow, but also the range of mortgage products you can access.

In general:

• Lower LTV (bigger deposit) often leads to more competitive options
• Higher LTV (smaller deposit) can increase costs and reduce flexibility

Even a modest increase in deposit can sometimes improve the options available, depending on lender criteria and the mortgage market at the time.

Is a 90% LTV mortgage right for you?

A 90% LTV mortgage may suit you if:

• You have a deposit of around 10% of the purchase price
• Your income and outgoings support the repayments comfortably
• You’re prepared for the possibility of higher borrowing costs than lower-LTV alternatives

It’s also worth thinking about how your situation could change over the mortgage term—such as job stability, interest rate movements, and ongoing household expenses.

Other LTV guides worth comparing

If you’re exploring different deposit levels, it can help to compare across the LTV range:

• 95% mortgages (5% deposit)
• 85% mortgages (15% deposit)
• 80% mortgages (20% deposit)
• 75% mortgages (25% deposit)
• 70% LTV mortgages (30% deposit)
• 65% LTV mortgages (35% deposit)
• 60% LTV mortgages (40% deposit)