Loan-to-Value (LTV)

Full definition

The size of your mortgage expressed as a percentage of the property value. A £150,000 mortgage on a £200,000 property is 75% LTV. Lower LTV unlocks better interest rates; UK lenders typically band rates by LTV in 5% increments. Most lenders cap at 95% LTV, with a small number at 98% or 100% for specific products.

How this affects you

Whether loan-to-value (ltv) is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.