Mortgages and mortgage advice, this is your route

  Home  |  About Mortgages  |  Sourcing Tools  |  Calculators  |  Key Facts  |  A to Z       Contact Us
You are here: Mortgage Route > Glossary A to Z > Letter L
 

The Mortgage Route A to Z
LTV

This glossary or A to Z should help clear up any confusion as to what terms mean what in the mortgage and insurance industry

Did this page help you?

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Letter L

LTV

This is the ratio of the loan amount to the property valuation expressed as a percentage. E.g. if a borrower taking out £40,000 on a property worth £100,000 then the loan to value would be 40% if they were borrowing £60,00 on the same property then the \loan to value would be 60%.

Most lenders are happy to lend 75% loan to value, over that amount lenders tighten up their criteria as they feel they are taking a bigger risk should they have to repossess the property in the future there is more of a risk of losing money on the loan secured on it.

FSA declaration and important text about mortgage advice