home : Loan to Value (LTV)

Loan to Value (LTV)

The size of the loan or mortgage as a percentage of the price being paid for the property .

e.g. A property valued at £100,000 with a mortgage of £75,000 would have an LTV of 75%.

The higher the loan to value the higher the lender's risk. For loans with a LTV above 70% many lenders wil insist on the borrower taking out some form of indemnity insurance.

Important Information
This site is intended for general information only and you should not make any decisions based on the content. You should always take appropriate financial advice from a qualified Mortgage Advisor before making any decision regarding your mortgage.