90% buy to let mortgages
The loan to value ratio of a mortgage indicates how much of your property you own outright (covered by your deposit, and commonly known as equity) and the amount you are borrowing (covered by your mortgage), expressed as a percentage. Therefore, a 90% LTV mortgage means that you are borrowing almost the entire value of the property and paying only a small deposit. Because this represents a higher risk to lenders as they are offering you a bigger loan, 90% mortgage deals can be difficult to come by, especially if you want to use the mortgage for a buy to let property.
Since the launch of the Government's Help to Buy scheme in 2013, several 90% loan-to-value (LTV) mortgage deals have appeared on the market. These high LTV mortgages could be useful for those looking to get onto the property ladder for the first time, or for buyers who want to move home but are unable to save up a substantial deposit. A 90% LTV Help to Buy mortgage could allow you to buy a property with as little as a 10% deposit. However, Help to Buy mortgages are designed to be used for residential properties only, so if you want to get a 90% loan to value mortgage for a buy to let property, you will not be able to use the Help To Buy scheme.
How much will a 90% LTV buy to let mortgage cost?
A high LTV mortgage, such as a 90% LTV buy to let mortgage, will generally be more expensive than mortgages with lower LTVs as the bank is taking on more risk due to the greater amount owed. For this reason you may struggle to find a lender who will offer you a 90% LTV mortgage on a buy to let property. To find the best high LTV buy to let mortgages alternatives for you, click on the FREE mortgage calculator above and compare over 5,000 deals tailored to your personal requirements.
While 90 per cent buy to let mortgages can be tricky to come by, it is worth checking out the table above for some of the best deals, or to speak to one of our specialist mortgage team on 0117 332 6063.