90% Mortgages
High LTV or small deposit mortgages are offered by lenders to help more people on the property ladder. Many lenders are now willing to offer mortgages with just 10% deposits.
Today's Best 90% Mortgage Deals
90% More About 90 Percent Mortgages
Mortgage applications are calculated using the Loan To Value percentage or LTV, for example borrowing £90,000 against a property valued at £100,000 would require mortgage with a maximum LTV of 90%, most of the best mortgage deals are offered with a maximum LTV of ~75% or, requiring a 25% deposit. Mortgages based on a deposit of just 10% are obviously not as competitive as mortgages with larger deposits but the benefit of a high LTV is realised in years to come, once the value of you home increases you will be in a position to explore remortgage quotes and reduce the interest on your repayments. So rather than save for years to get an attractive rate, investigate a 90% mortgage, pay slightly more in the sort term but save on rent and look forward to the better rate when you remortgage a few years into the mortgage.
What To Look Out For
The more risk a lender is prepared to accept, the more sercurity will be required. Consequently lenders will demand higher interest rate and longer commitment from you in the form of expensive early settlement charges that surpass the introductory offer that may have been offered, this will affect the affordability of remortgaging.
