Loan to Value (LTV)
- the ratio of deposit in relation to mortgage loan.
- Say you buy a property for 100k and your LTV is 75%
- So you borrow £75k and you provide £25k deposit = 100%.
- 75% LTV = 75% of debt you owe to the lender and
- 25% of the deposit is the amount you provide to buy a property.
- In this instance the 25% stake is also known as the equity or the amount remaining after the loan is deducted.
Published: 10 November 2013
Last Updated: 17 November 2021