Loan-to-value (LTV)
Mortgages & secured lendingA percentage showing how much of a property value is borrowed versus paid as a deposit.
Overview
LTV is calculated by dividing the loan amount by the property value.
Lower LTV usually means better mortgage rates.
Why it matters
- It affects mortgage pricing and eligibility.
- Lower LTV reduces lender risk.
- It can impact how much you can borrow.
FAQs
Is a lower LTV always better?
Generally yes, because it can unlock better rates.
Does LTV affect approval?
Yes. Lenders often have maximum LTV limits.
Related terms
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