Loan To Value (LTV)

• The loan to value ratio, or just loan to value, is the amount of the loan or mortgage as a percentage of the value of the property used as security. For example, if a house was being purchased for £100,000 and a mortgage of £90,000 had been applied for to help pay for it, the LTV on the loan would be 90%.

Each lender will have a maximum LTV, above which they would not be prepared to lend money on a particular mortgage product (or at all). Some lenders require borrowers to pay a Higher lending charge if the LTV is above a certain percentage.