Remortgage at 90% LTV

What Does 90% LTV Mean and Why Does It Matter?

A 90% loan-to-value ratio means that your mortgage debt represents 90% of your property's current market value. If your home is worth £250,000, a 90% LTV means you owe £225,000 and have £25,000 in equity — just 10% of the property's value.

From a lender's perspective, 90% LTV is a higher-risk proposition. With only 10% equity as a buffer, any significant drop in property values could push you into negative equity, where you owe more than your home is worth. This is why lenders charge higher interest rates at this LTV level — they are compensating for the increased risk.

The practical implications for you as a borrower include:

• Higher interest rates — You will pay more than borrowers at lower LTV bands. The difference compared to a 75% LTV deal can be 0.5% to 1% or more, depending on the lender and market conditions.
• Fewer product choices — While many lenders offer products at 90% LTV, the range is narrower than at 80% or below. Some products that are available at lower LTVs simply do not exist at 90%.
• Stricter eligibility criteria — Lenders may apply more rigorous affordability tests and credit checks at 90% LTV. A strong credit history and stable income become even more important.
• Greater sensitivity to valuation — Even a small shortfall in your property's valuation can push your LTV above 90%, which could move you into a higher rate band or make you ineligible for certain products.

Despite these challenges, remortgaging at 90% LTV is a common and perfectly achievable process. Thousands of UK homeowners successfully remortgage at this level every year, and with the right guidance, you can find a deal that works for your circumstances.

Who Can Remortgage at 90% LTV?

You do not need a perfect financial profile to remortgage at 90% LTV, but lenders do look more carefully at your application than they might at lower LTV levels. Here is what most lenders will be looking for:

Credit history

A clean credit record is particularly important at 90% LTV. Most mainstream lenders will want to see no defaults, county court judgements (CCJs), individual voluntary arrangements (IVAs), or bankruptcy within the last six years. Late payments on credit accounts can also be problematic, though some lenders are more tolerant than others.

If you do have credit issues, some specialist lenders may still consider you at 90% LTV, but rates will be higher and the choice of products will be very limited.

Income and affordability

Lenders will assess whether you can comfortably afford the higher payments that come with a 90% LTV mortgage. They will look at your gross income, your essential expenditure, any existing debt commitments, and your living costs. They will also stress-test your affordability by checking whether you could still afford payments if interest rates were to rise.

Employment type

Employed applicants on permanent contracts generally have the most straightforward path. Self-employed borrowers, contractors, and those with irregular income can also remortgage at 90% LTV, but they may need to provide more extensive evidence of their earnings. Most lenders require at least two years of trading history for self-employed applicants at this LTV level.

Property type

Standard residential properties — houses and purpose-built flats — are the most straightforward. At 90% LTV, lenders may be more cautious about non-standard property types such as high-rise flats, flats above commercial premises, properties with short leases, or homes of non-standard construction.

Mortgage history

Lenders will want to see that you have managed your current mortgage responsibly. A track record of on-time payments demonstrates reliability and can strengthen your application, particularly at higher LTV levels.

Finding the Best Rates at 90% LTV

While rates at 90% LTV are higher than at lower bands, there is still meaningful variation between lenders. Taking the time to compare deals carefully can save you a substantial amount over the term of your mortgage.

Use a whole-of-market broker

This is arguably the most important step you can take. A broker has access to products from across the market, including exclusive deals that are not available to direct applicants. At 90% LTV, where the range of products is narrower, a broker's expertise in identifying the best-value deals is particularly valuable.

Compare total costs, not just headline rates

A deal with a low headline rate but a high arrangement fee may cost more overall than a slightly higher rate with no fee. Ask your broker to compare the total cost of each deal over its product term to get a true picture of which option offers the best value.

Consider different product types

At 90% LTV, you will find fixed-rate deals, tracker mortgages, and discount variable rate products. Fixed rates offer payment certainty, which can be particularly reassuring when you are borrowing at a higher LTV. Trackers may offer a lower initial rate but carry the risk of increases if the Bank of England base rate rises.

Look at two-year versus five-year fixes

A two-year fix allows you to remortgage again relatively quickly, potentially at a lower LTV if your property value has increased or you have paid down your mortgage. A five-year fix provides longer-term stability but locks you in for a longer period. Consider your plans and financial outlook when making this choice.

Check for incentives

Some lenders offer free valuations, free legal work, or cashback on their remortgage products. These incentives can reduce the overall cost of switching and are worth factoring into your comparison, particularly when the difference in rates between products is small.

Consider whether a product transfer makes sense

Your existing lender may offer a product transfer that avoids the need for a new application and valuation. This can be attractive if your circumstances have changed since your original application, as a product transfer typically does not involve a full affordability assessment. Compare any product transfer offer against the wider market before deciding.

How to Reduce Your LTV From 90%

If you are currently at 90% LTV, reducing it even slightly can have a meaningful impact on the rates available to you. Here are practical ways to improve your position:

Make regular overpayments

If your current mortgage permits overpayments without penalty, this is one of the most effective ways to reduce your LTV. Even modest overpayments of £100 or £200 per month can add up over time and reduce your outstanding balance.

Make a lump sum payment

If you have savings or receive a bonus, windfall, or inheritance, using a portion to reduce your mortgage balance can push you into a lower LTV band. On a £250,000 property, moving from 90% to 85% LTV means reducing your mortgage by £12,500.

Wait for property values to rise

If house prices in your area are increasing, your LTV will naturally fall as your property becomes worth more. However, relying on property price growth alone is risky, as values can also fall. Consider this as a bonus rather than a strategy.

Invest in value-adding improvements

Home improvements such as extensions, loft conversions, or significant renovations can increase your property's market value. However, at 90% LTV, you may have limited scope to fund improvements, and you should be cautious about borrowing more against the property to pay for them.

Combine strategies

The most effective approach often combines several of these strategies. For example, making overpayments for six months while property values also increase modestly could be enough to push you from 90% to 85% LTV, unlocking noticeably better deals.

Your mortgage broker can help you calculate the potential savings from reducing your LTV by different amounts, allowing you to make an informed decision about how much effort to invest in bringing it down before you remortgage.

The Remortgage Process at 90% LTV

The remortgage process at 90% LTV follows the same steps as at any other LTV, though there are some aspects that may differ slightly:

Step 1: Assess your current position

Check your current mortgage balance, any early repayment charges, and your property's estimated value. Calculate your approximate LTV and review your credit report for any issues that could affect your application.

Step 2: Speak with a broker

A whole-of-market broker will assess your circumstances and identify the best deals available at your LTV. They will also advise on whether it would be beneficial to take steps to reduce your LTV before applying.

Step 3: Submit your application

Once you have chosen a deal, your broker submits the application. At 90% LTV, be prepared for a thorough assessment of your income, outgoings, and credit history. Have all your documents ready to avoid delays.

Step 4: Property valuation

The lender will arrange a valuation of your property. At 90% LTV, there is a greater chance that the lender will require a physical valuation rather than a desktop assessment. The valuation is crucial because even a small shortfall can increase your LTV and affect the deal available to you.

Step 5: Mortgage offer

If the lender is satisfied with your application and the valuation, they will issue a formal mortgage offer. Review the terms carefully, including the interest rate, any ERCs on the new deal, and the repayment schedule.

Step 6: Legal work and completion

Your solicitor handles the legal transfer of the mortgage. This typically takes two to four weeks. On completion, the new mortgage replaces the old one and your first payment to the new lender is usually due around one month later.

The entire process generally takes four to eight weeks. At 90% LTV, delays are slightly more common if the lender requires additional documentation or if there is a valuation query, so building in a buffer of time is sensible.

What If You Cannot Remortgage at 90% LTV?

In some cases, you may find it difficult to remortgage at 90% LTV. This could be because of credit issues, affordability concerns, or your property type. If you are unable to switch to a new deal, here are some alternative options to consider:

Product transfer with your existing lender

Your current lender may be willing to offer you a new deal without a full application. Product transfers typically do not require a new valuation or affordability assessment, making them accessible even when your circumstances have changed. While the rate may not be the cheapest on the market, it is likely to be better than the SVR.

Wait and improve your position

If your circumstances are likely to improve — for example, if you expect a pay rise, are paying off debts, or if property values are rising — it may be worth waiting until you are in a stronger position before applying.

Speak to a specialist broker

Specialist brokers who deal with complex cases may be able to identify lenders who are willing to accept your application when mainstream lenders have declined. They have detailed knowledge of different lenders' criteria and can present your case in the most favourable way.

Consider a secured loan instead

If you need to raise additional funds but cannot remortgage, a secured loan (second charge mortgage) might be an option. This sits alongside your existing mortgage and does not disturb your current deal. However, the combined LTV of your mortgage and secured loan will need to fall within the lender's acceptable limits.

Seek debt advice if needed

If your financial difficulties are making it hard to meet your current mortgage payments, free and confidential debt advice is available from organisations such as StepChange, Citizens Advice, and the Money and Pensions Service. Getting professional support early can help you explore all available options and avoid more serious problems down the line.

Whatever your situation, do not simply accept your lender's SVR without exploring alternatives. Even if a full remortgage is not possible right now, there may be other steps you can take to reduce your costs.