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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