90% LTV Mortgage

90% LTV Mortgage – making a return

A 90% Loan to Value (LTV) mortgage are when a lender lends 90% of the property value to the borrower. For this the borrower has to have a 10% deposit and it’s a typical scenario for many first time buyers . 

Getting a 90% LTV mortgage is easier than it was.

If you are looking for a 90% LTV mortgage, it’s fair to say that, over recent months it’s been fairly tough to get. This has left many purchasers with the problem of trying to find a larger deposit or being steered towards other schemes such as the Help to Buy (which has its own pro’s and con’s).

Despite the lockdown announced in January 2021, there are still more lenders now prepared to consider 90% LTV mortgages to help prospective purchasers get on the property ladder.

However, this comes with caveats as these products are mainly aimed at first time buyers (FTB) or new customers of the various lenders ( referred to in the industry as ” New to bank” or “NTB”).

However, those who have a 10% deposit and an excellent credit score now have some good options to get a mortgage of up to 90% of the purchase price which means, for some, avoiding help to buy and other shemes or simply the difference beween buying the property or not. 

Of course every mortgage will be subject to status, affordability and the lenders own criteria. Therefore it makes sense to go through a mortgage broker who can advise you, prepare your application in the best way and handle all the administration for you.

Also some of these lenders are only available through mortgage intermediaries so using a broker makes even more sense to access all products.

Some lenders operate nationally and some locally which means in certain areas of the country you may get different or better deals.

Here is the current list of lenders offering 90% LTV mortgages (At the time of writing Jan 7th 2021)

Mainstream Lenders

• Accord – FTB & NTB – Max Loan £600k
• Barclays – FTB & NTB – includes New Build, JBSP and Flat (max loan £220K)
• Coventry – FTB & NTB
• Halifax – FTB Only
• Leeds Bs – FTB, NTB and Remo (not available to those currently or recently been furloughed)
• Metro Bank – FTB & NTB – (not available to those recently furloughed)
• Nationwide – FTB & NTB – (employed applicants only)
• NatWest – FTB & NTB
• Platform – FTB, NTB and Remo applications
• Santander – FTB only
• TSB – FTB & NTB
• Virgin Money – FTB & NTB

Building societies and specialist lenders

• Aldermore – FTB & NTB 
• Chorley – for North west – (Lancashire, Merseyside, Manchester, Cumbria & Cheshire)
• Darlington – for postcodes DL, TS, DH, YO, SR & HG
• Dudley – DY, WV, WS, & B postcodes or can access an exclusive product with 3mc – available to anyone
• Furness – (includes New Build) – 95% for Heartland Area
• Hinckley & Rugby – FTB & NTB (Employed applicants only and not available on flats
• Melton Mowbray – East Midlands – LE, LN, NG, NN, DE & PE9
• Nottingham Bs – FTB, NTB & Remo
• Reliance Bank – Key Worker Product (for joint application one applicant must be a qualifying occupation)
• Saffron – FTB inc New Builds
• Scottish Bs – Professional range (Scotland only)
• Stafford Railway – Heartland area of Stafford

This is a snap shot of what is potentially available today but it changes daily. if you are considering a purchase or remortgage please get in touch for the latest offers specific to your circumstances.

Options if you can’t raise a 10% deposit – don’t despair

Sometimes it’s just not possible to raise the deposit you need. Obviously this can mean you need to wait and save a little longer to raise more.

However, in a rising property market the house you wanted may become out of reach faster than you can save the deposit money.

So if it is important to get on the property ladder now, you may wish to consider one of the government Help to Buy schemes, buying a shared ownership property, a Guarantor mortgages or even borrowing from the bank of Mum and Dad

Talk to a Promise Money adviser for more details

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