Loan to Value (LTV)

Loan to value is the ratio between the size of the loan you are seeking and the mortgage lender's valuation of the property.

So, if you're borrowing £150,000 on a property valued at £200,000, the LTV is 75% and the lender will feel comfortable you have enough equity in the property for it to be reassured that if you stopped making your interest/capital repayments, it could sell your property and recoup the money you owe.

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Last Updated: February 2008 © Moneyextra.com

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