Last reviewed: May 2026
A 10% deposit, also called a 90 LTV mortgage, is a deposit level that often gives access to a broader range of mortgage products. It can offer access to a broader lender choice and rates that may be lower than equivalent 95% LTV products, subject to lender criteria and market conditions. This guide answers how much deposit you need, what 90 LTV rates look like, and whether waiting for 10% makes financial sense for your situation.
Initial discussion at no cost. If you choose to proceed, our broker fee applies at this stage.
The minimum deposit for most residential mortgages is 5%, but a 10% deposit (90 LTV) is a commonly used deposit threshold for first-time buyers. It can open access to a broader mainstream lender market. Rates at 90% LTV are often lower than equivalent 95% LTV products, depending on individual circumstances. Whether saving the extra deposit is worth the additional time depends on your rent and savings rate.
The minimum deposit for most residential mortgages in the UK is 5%. However, not all deposit levels are equal. Here is how the three most common first-time buyer deposit levels compare.
Many borrowers find lender choice increases more noticeably between 95% and 90% LTV than between 90% and 85% LTV. This is why 10% is commonly considered a key first-time buyer deposit level. Lenders often offer broader product ranges at 90% LTV than at 95% because the buyer has more equity in the property from day one, reducing the lender's risk meaningfully.
| Property price | 5% deposit | 10% deposit | 90% mortgage |
|---|---|---|---|
| £150,000 | £7,500 | £15,000 | £135,000 |
| £175,000 | £8,750 | £17,500 | £157,500 |
| £200,000 | £10,000 | £20,000 | £180,000 |
| £225,000 | £11,250 | £22,500 | £202,500 |
| £250,000 | £12,500 | £25,000 | £225,000 |
| £275,000 | £13,750 | £27,500 | £247,500 |
| £300,000 | £15,000 | £30,000 | £270,000 |
| £350,000 | £17,500 | £35,000 | £315,000 |
| £400,000 | £20,000 | £40,000 | £360,000 |
Amounts are exactly 5% and 10% of the purchase price. Gifted deposits and Lifetime ISA funds may contribute toward the requirement.
A 10% deposit mortgage is a residential mortgage where the buyer provides 10% of the purchase price as a deposit and the lender provides the remaining 90%. This 90% loan-to-value ratio gives it the names 90 LTV mortgage or 90 percent mortgage.
On a £250,000 property, a 10% deposit means £25,000 from the buyer and a mortgage of £225,000. On a £300,000 property, it means £30,000 deposit and a mortgage of £270,000. All deposit funds must be evidenced. A gifted deposit from a family member can contribute toward the 10%, provided it is documented with a signed gift letter. A Lifetime ISA, including the government bonus, can also count toward the deposit requirement.
Lenders treat 90% LTV as a meaningfully lower risk than 95% LTV, because the buyer has more equity in the property from the start. This may be reflected in the rates and product range available, subject to individual circumstances and market conditions.
Rates at 90% LTV may differ from those at other LTV levels. The rate you receive depends on the lender, your credit profile, income, and market conditions at the time of application.
Fewer lenders; often requires Mortgage Guarantee Scheme or Deposit Unlock backing. Rates subject to market conditions and lender criteria.
Mainstream market. Generally offering broader lender choice than at 95% LTV.
Marginal further improvement over 90% LTV for many buyers. May not justify the additional saving time depending on circumstances.
Rates vary by lender, individual circumstances and market conditions. Figures shown are illustrative only and not quotations.
Many major UK lenders offer 90% LTV mortgages, making it widely available through many mainstream lenders. The choice at 90% LTV is broader than at 95% LTV, which relies on a smaller number of scheme-backed lenders.
Many major high street lenders offer 90% LTV mortgage products. Rates and criteria vary. Some prioritise existing customers for their best rates.
Many building societies are active at 90% LTV and may offer alternative pricing or criteria, particularly for first-time buyers. Some have more flexible criteria than banks.
Specialist and challenger lenders offer 90% LTV products for applicants with more complex income situations, self-employment, or minor adverse credit.
Some lenders consider 90% LTV applications with minor adverse credit such as satisfied defaults or older missed payments. Criteria vary significantly by lender.
A range of lenders consider self-employed applicants at 90% LTV. Evidence requirements vary. Most need one to three years of accounts or SA302s.
Starting at 90% LTV means you reach 85% or 80% faster as you repay, unlocking lower rates at remortgage. Most lenders that offer 90% LTV for purchase also offer it for remortgage.
New build properties may have lender-specific maximum LTV limits at 90%. Some lenders reduce their maximum LTV for new builds; confirm before applying.
A mortgage adviser can compare products across these lender types and identify lenders whose criteria and products may suit your circumstances at 90% LTV. Some mortgage applications may involve a credit search, so identifying suitable lenders first can be helpful.
This is the most common question first-time buyers face. A 10% deposit may provide access to a wider range of mortgage products, depending on your circumstances. But saving that extra deposit takes time, and during that time you are paying rent. The answer depends on your specific numbers.
The comparison below uses assumed figures on a £250,000 purchase for illustration only. These are not quotations.
No further rent. Equity building starts now. Higher rate and more total interest than 10% deposit option.
Lower rate and less total interest. 2 years of additional rent must be factored into the comparison.
The rent cost changes the maths entirely. In this illustration, the monthly payment difference is approximately £75 and the lifetime interest saving is approximately £10,000. But if your rent is £800 per month and it takes 2 years to reach 10%, you will pay £19,200 in rent before buying. In that scenario, buying sooner at 5% may produce a better overall financial outcome despite the higher rate. Modelling your specific rent, savings rate, and income is the only reliable way to answer this question.
The saving timeline depends on two variables: the deposit amount needed and how much you can set aside each month. The table below gives illustrative timelines starting from zero. A Lifetime ISA can materially shorten these for eligible buyers.
| Property price | 10% needed | Saving £300/mo | Saving £500/mo | Saving £800/mo | Saving £1,200/mo |
|---|---|---|---|---|---|
| £150,000 | £15,000 | 4.2 years | 2.5 years | 1.6 years | 1.0 years |
| £200,000 | £20,000 | 5.6 years | 3.3 years | 2.1 years | 1.4 years |
| £250,000 | £25,000 | 7.0 years | 4.2 years | 2.6 years | 1.7 years |
| £300,000 | £30,000 | 8.3 years | 5.0 years | 3.1 years | 2.1 years |
| £350,000 | £35,000 | 9.7 years | 5.8 years | 3.6 years | 2.4 years |
Timelines are illustrative, starting from zero with no interest. A Lifetime ISA adds a 25% government bonus on up to £4,000 per year for eligible applicants. Savings interest not included.
A Lifetime ISA is one of the most effective tools for reaching a 10% deposit faster. The government adds 25% on top of everything you save, up to £1,000 free per year.
The LISA bonus can be combined with personal savings toward a 10% deposit. Two buyers each contributing to a Lifetime ISA at maximum rate receive up to £2,000 per year in combined government bonuses. This can significantly accelerate the timeline to reaching 10%. See our First Time Buyer Schemes guide for the full LISA rules and how it compares to other current schemes.
Whether you have 5% or 10% saved, we can model the real numbers for your situation and identify the right mortgage for where you are now.
Initial discussion at no cost.
We compare 90 LTV mortgage rates across the whole market, model the 5% vs 10% comparison for your actual numbers, and manage your application from start to offer.
A £299 broker fee may apply if you proceed. Solicitor and other third-party costs apply separately.
Speak to a Mortgage AdviserWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). We offer mortgages from across the market and will make a recommendation based on your circumstances. A broker fee of £299 may be payable if you proceed with a mortgage application. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
All rate ranges, cost comparisons and saving timelines on this page are illustrative only and do not represent actual rates or guaranteed outcomes. Figures do not constitute a quotation or recommendation.
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