Despite an economic slowdown and the refusal by many lenders to expose themselves to risk it is still possible to find 90% mortgages.

A 90% mortgage means you only need to have a 10% deposit to buy a property.

There are however a few products available but the rate of interest is not as competitive compared to 75% mortgages for example.

A 90% mortgage will however allow first time buyers with limited funds to get on the first rung of the housing ladder.

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Current offers are available from Cheltenham & Gloucester, Abbey, RBS and Halifax.

Rates for 90% mortgages in the UK for first time buyers start from 6.29% and go up to 7.49%.

Rates for 75% mortgages are as low as 3.24% for a Tracker or 3.69% for a Fixed Rate.

By comparing the 90% mortgages with 75% mortgages using an example of £100,000 borrowed the difference in cost can be easily demonstrated.

At 3.24%, a repayment mortgage would cost £487 per month.

At 6.29% a repayment mortgage would cost £662 per month.

That’s a difference of £175 per month.

If the borrower needs £200,000 at 90% the difference between the two would increase to £350 per month.

It is therefore obvious that a 75% mortgage is a much cheaper alternative to a 90% mortgage.

The difficulty many first time buyers have is raising the deposit they need.

To purchase a £100,000 property with a 75% mortgage they would need to find £25,000.

Then on top of that there are the costs involved in buying a property for the first time.

Valuation fees are required and can be over £500 depending on the mortgage company and the size of the property.

Legal fees of between £400 and £800 may also be required depending on the solicitor used and if the property is worth more than £175,000 there will also be stamp duty to pay.

Buying a property for the first time is not something to be considered lightly and all of the costs need to be taken into account.

It is always a good idea to speak to a qualified mortgage adviser who will be able to break-down the cost and provide a total amount needed to buy a property.