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Applications and affordability

What is Loan-to-Value (LTV)?

The mortgage balance expressed as a percentage of the property's value.

Definition

LTV is calculated by dividing the mortgage by the property value used by the lender and multiplying by 100. Product pricing and maximum lending often change at LTV bands. If the lender values the property below the purchase price, the effective LTV can be higher than expected.

Practical example

A £180,000 mortgage against a £200,000 valuation is 90% LTV.

Why it matters

A lower LTV can widen product choice, but affordability and property criteria still apply.

LTV calculator

Source and review

Reviewed 16 July 2026. Product criteria and rules can change.

MoneyHelper: mortgage affordability

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