90% remortgages (Can you get one?)
What are the repayments on a 90% remortgages?
The repayments on a 90% remortgage will depend on how much your home is valued at and the rate the mortgage lender gives you on a 90% remortgage.
How much deposit do I need for a 90% remortgages?
A 90% remortgages will mean you have at least 10% equity in your home. Different mortgage lenders will look at your 90% remortgage case and determine if the 10% equity in your property is sufficient enough for them to remortgage on your property.
This will be the first basis of your affordability of a 90% remortgages.
Some of the mortgages you could get with a 90% remortgages include:
Fixed-rate 90% remortgages:
With these mortgages, the rates are fixed for a period of 2, 3 or 5 years and provides you certainty over your mortgage term. You can move from a fixed-rate mortgage to another fixed-rate mortgage when you get a 90% remortgage.
Variable rate 90% remortgages:
You can access a host of variable mortgages through a mortgage lender and these mortgages will have a variable rate which can be increased or decreased at any time by the mortgage lender.
Tracker 90% remortgages:
You can access a host of tracker mortgages from most mortgage lenders. These mortgages will usually track the bank of England’s rate and will move in line with it although it may not be the exact rate but rather a rate which will increase by the same point or increase by the same point as the bank of England rate.
90% buy to let remortgages:
Some buy to let mortgage lenders have a minimum amount they will lend but you may be able to get a 90% LTV buy to let remortgage with some specialist buy to let mortgage lenders. A buy to let mortgage broker will be able to assist you in this regard.
If you took out a government scheme to buy your property and you want to remortgage then you may need to consider paying back any equity loans you may have taken out from the government.
Not all Government schemes have an equity loan and with some of the government schemes below, you may not need to give them any consideration when going through a remortgage.
Some first time home buyer government schemes which you may have used include:
- Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy- allows you to buy your home at a discount price.
- Preserved right to buy– same as above.
- Right to acquire- same as above.
Depending on where you live, you may also have taken out a government scheme provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.
In this case, you may need to see if you need to seek their permission before getting a remortgage.
The second basis of affordability for a 90% remortgages will be your salary.
Most mortgage lenders use your annual salary x a multiple to see how much they could lend to you.
If you want a 90% remortgages you will need your salary to still be able to cover your remortgage payments.
What do the repayments on a 90% remortgages look like?
Mortgage repayments on a 90% remortgages will differ based on lenders and it wouldn’t be wise to simply provide details that can change at any moment here.
To see if you are eligible for a 90% remortgages, speak to a mortgage broker.
Can you get a 90% remortgages with bad credit?
Yes, you may be able to get a 90% remortgages with bad credit but this will heavily depend on your circumstances. You should always look to build credit when you have bad credit as this could improve your mortgage affordability.
A bad credit mortgage broker may also be in a better position to carefully analyse your situation and provide you with suitable bad credit mortgage lenders willing to lending to you.
If you are bankrupt then you may need to wait for 12 months after you have been discharged from being bankrupt to get a 90% remortgages
Bad credit may include:
How to get a 90% remortgages?
Getting a remortgage can be a very difficult process if not handled with care.
If you are considering getting a remortgage for 90% LTV then using a mortgage broker may be a good choice as mortgage brokers usually have access to many more products than any specific mortgage lender.
Mortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.
If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit mortgage brokers or self-employed mortgage brokers may be useful.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.