90 percent morgages are simply mortgages where the lender has borrowed from a lending institution 90 percent of the value of the asset. As with all mortgages the credit lent is secured upon the asset. The asset in this case will typically be a residential property as lenders are usually unwilling to lend at such as high loan to value ratio as 90 percent on assets that depreciate typcially over time.

90 percent mortgages imply that the lender will be fronting 10% of the value of the property through other sources, usually as a cash deposit. 90 percent mortgages are considered fairly high loan to value. 90 percent mortgages were very prevelant over the decade to mid 2007 where credit was cheap and easy and banks were able to repackage poor quality mortages in to collateralised debt obligations and sell these toxic assets onto other banks. The market for collateralised debt obligations amongst investment banks has now all but vanished and with it 90 percent mortgages are increasingly hard to come by.  This is a stark contrast to 2006/2007 where 100 percent mortgages were not uncommon. Now 90 percent mortgages look more or less unatainable.

Today the average borrower seeking to raise mortgage financing will be offered up to 75 percent. Banks are now scrutinising the credit history and security of the income the mortgage candidates have. Whilst this should really have been a key factor in 2006/2007, the economy had been through a sustained period of economic growth and rising house prices. The banks therefore did not consider 90 percent mortgages as particularly risky given they were expecting house prices to keep on rising. If the candidate failed to repay on his or her 90 percent mortgage, the bank believed they could simply reposess and easily realise the outstanding value of the 90 percent mortgage loan via a sale of the property.

If you are having troble getting a 90 percent mortgage there really is nothing that can be done apart from asking every single bank if they are prepared to lend on such terms. With the potential green shoots emerging in the economy we may well be on the way to a recovery in the credit markets, but with the legacy of the credit crunch behind us so recently it will likely be a while before the 90 percent mortgage becomes prevelant again.