There’s some good news on the horizon for borrowers, as mortgage rates lowered from changes in central fiscal policies, providing renewed hope for borrowers and lenders alike. Since the belt-tightening to deal with the credit crunch, borrowers have watched as previous 100% and 95% mortgage deals disappeared out of the window.
But whilst borrowers want to borrow and lenders want to lend, there’s still that ever-present fear of getting burnt. Some new-build companies offer prospective purchasers various options if you have a low deposit, or no deposit at all. Some lenders also provide 100% mortgages for first-time buyers, but there are few and the interest rates are high.
Deals change on a weekly or even daily basis, especially after a Bank of England base rate change. An enticing deal that has recently hit the market, offered by Lloyds Bank, is a 90% mortgage for first-time or second-time buyers with low deposits. Unfortunately, the loan excludes remortgage customers at this time.
This mortgage has a low 4.10% fixed interest rate for two years, with zero product or agreement fees, and only a 10% deposit required for first- or second-time homebuyers. Some previous offers had product names such as The Perfect 10, but these days lenders simply produce a range of offers to suit people's circumstances.
| Lender | Loan Type | Rate | Then | Fees |
|---|---|---|---|---|
| Danske Bank | 2 Yr Fixed | 3.97% | 6.15% | £0 |
| Lloyds Bank | 2 Yr Fixed | 4.10% | 7.24% | £0 |
| HSBC | 2 Yr Fixed | 4.19% | 6.24% | £0 |
| NatWest | 5 Yr Fixed | 4.10% | 6.74% | £995 |
| Nationwide BS | 10 Yr Fixed | 4.89% | 6.49% | £999 |
Rates correct from 1st February 2026 for a 90% Loan To Value (LTV) mortgage. Please take professional advice.
The concept of a 90% mortgage specifically targets helping first home buyers who struggle to put together a reasonable deposit to buy their own homes at an affordable interest rate. With this option, they do get a shot at a competitively priced mortgage.
Previously, you may have received additional bonuses included in the mortgage deal, such as free three-year unemployment insurance and a £500 payment towards the borrower's legal fees. But these types of bundled products are generally no longer available.
Seeing a few more of these types of deals come to fruition strikes an optimistic note about the potential to help the housing market improve for both borrowers and lenders.
Admittedly, the interest rates are somewhat higher than those for deals with larger down payments, but it’s a good start, and hopefully, we will see many more changes in the near future.
In most cases, you need to contact the bank by telephone or online and arrange an appointment with a financial consultant. The mortgage broker can advise you on the best options for obtaining a mortgage that suits you.
If you want to do a bit of preliminary checking to see how much a 90% mortgage like this might cost you, it is worth paying a visit to the various comparison websites. These have online calculators where you can enter some figures and calculate projections of the benefits and costs of the various products before your meeting with the broker.
Alternatively, enter your details online to contact our independent broker service.
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