What is a 90% LTV mortgage?

A 90% mortgage means you borrow 90% of the property’s value, so you would need to come up with a 10% deposit. So, if you're eyeing up a £175,000 home, you’d need £17,500 upfront and the rest would be covered by your mortgage.

If you're a first-time buyer or home mover who doesn’t have a huge pot of savings or equity in your current home, a 90% mortgage could be more viable than one with a lower LTV. However, bear in mind that the interest rate you are offered could be higher than with mortgages that require less cash as a deposit.

Many 90% and even 95% mortgages offer fixed-rate deals for two to five years, giving you predictable monthly payments while you settle in. There are tracker and variable rate options too, depending on what suits your plans and appetite for risk best.

Are you eligible for a 90% LTV mortgage?

To be eligible for any type of mortgage you will need to meet the lender’s eligibility and affordability criteria. The rules do vary between lenders, but here’s what they’ll check:

Your income

Lenders will look at what you earn when deciding how much to lend. Typically, you can borrow up to four and a half times your annual income, or combined annual income if applying for a joint mortgage. Some providers may offer you more, so comparing is essential.

Affordability

You'll need to demonstrate that you can comfortably afford all your mortgage payments, in addition to your other financial commitments like bills for your existing borrowing, utilities and childcare, for example.​

Credit history

Whilst there isn’t a specific credit score required for a mortgage, having a higher score can boost your chances of being approved. It might be worth checking to see if there is anything you can do to improve your report before you apply for a mortgage.

Every lender’s a bit different, so it’s very important to compare your options to find the right fit for your situation.

Things to think about with a 90% mortgage

A 90% or a 95% mortgage can be a great way to buy a home with a smaller deposit, but as with any financial product it’s important to understand all the pros and cons before deciding. Here’s a few things to weigh up:

Potentially higher rates

Because you’re borrowing most of the property’s value, interest rates can be a bit higher compared to lower LTV deals. That might mean your monthly payments are a little steeper.

Consider future risk

If house prices take a dip, properties with high LTVs are at more risk of negative equity. This where you owe more than your home is worth. Whilst not so common these days, it’s something to keep in mind before jumping in.

Check lender criteria

Lenders have their own rules about what kind of property and mortgage they’ll accept. Some won’t lend high LTV mortgages on properties like new-build flats or buy-to-lets. So, it’s worth checking the fine print before you fall in love with a place.

Other mortgage options

If you are struggling to raise a deposit, there are several schemes to help home buyers get onto the property ladder. You may want to consider a shared ownership mortgage or a right-to-buy mortgage, for instance. Or, there are some 95% and even 100% mortgages available. If you have someone close to you in a strong financial situation, a guarantor mortgage or offset mortgage could also help.

And of course, you must be aware that your home could be repossessed if you don’t keep up repayments on your mortgage. Do make sure you’re comfortable with what you can afford before taking the plunge.

How much can I borrow with a mortgage?

Many mortgage lenders offer up to around 4.5 times your annual earnings, though some may allow you to borrow more. Going off the typical figure, if you earn £50,000, you might be able to borrow up to £225,000. If you apply jointly with someone earning £30,000, that total could rise to £360,000.

Just bear in mind that your final offer will depend on factors like your affordability, existing borrowing and deposit size. Income’s just part of the picture. Here’s what else a lender might look at when assessing your application:

  • Monthly outgoings: Lenders will consider your regular expenses like bills, credit card payments and childcare costs to make sure the mortgage is affordable for you both.

  • Affordability stress tests: Lenders will check if you could afford your mortgage if interest rates rise. If you’re borrowing more for things like home improvements, lenders will also want to ensure you can handle the increased payments.

  • Creditworthiness: A solid credit report can really boost your chances of approval, so be sure to check it ahead of your application to see if there is anything you can do to improve your score.

What costs should I budget for when arranging a mortgage?

When applying for a mortgage, remember there are a few extra costs you’ll need to keep in mind to avoid any surprises:

  • Valuation fees: Lenders will want to know your property's value, so they'll arrange a valuation. Costs can vary, but it's wise to budget for this.​

  • Legal fees: Whether it's a solicitor or conveyancer, you'll need legal help to navigate the process.​ Legal fees for home buying are typically around £2,000 (including VAT at 20%), but the exact cost can vary depending on the property and how complex the work is.

  • Local searches: If you’re buying a property, your solicitor will also carry out local searches – usually costing £250–£300.

  • Arrangement fees: Some lenders charge a fee to set up your mortgage. Expect to pay anywhere between £1,000 to £2,000 or more. ​

  • Early repayment charges (ERCs): Planning to pay off your mortgage early? Be aware of potential ERCs, which can apply if you overpay beyond a certain limit.

  • Survey costs: If you're considering a detailed property survey, this will be an additional expense to keep in mind.​

By considering all of these costs, you can keep your mortgage process running smoothly without any unexpected financial bumps along the way.

Mortgage guides

Answering your questions about 90% LTV mortgages

Page updated on 18th September 2025, Reviewed by Clare Yates