Loan-to-Value (LTV)
Loan-to-Value (LTV) is the percentage of a property's value that you borrow through a mortgage.
1 min read Buying a Home
What it means
Loan-to-Value (LTV) is the percentage of a property's value that you borrow through a mortgage. A lower LTV means you own more of the property through your deposit and borrow less.
Example
A £300,000 home with a £240,000 mortgage has an LTV of 80%.
Why it matters
LTV is one of the main factors lenders use when setting mortgage rates.
Mortgage deals are often grouped into LTV bands such as 95%, 90%, 85% and 80%.
Is a lower LTV better?
Generally yes. A lower LTV often gives access to more competitive mortgage rates.