Glossary
LTV: Loan to value
The loan as a percentage of the property's value.
What it means
Loan to value is the size of a mortgage or bridge compared with what the property is worth. Buy-to-let lenders typically go up to 75%, sometimes 80%, and lower LTVs usually get better rates. In a refinance, LTV is measured against the new valuation, which is what lets a BRR release cash.
Worked example
ExampleA £90,000 loan on a property valued at £120,000.
- LTV
- £90,000 ÷ £120,000 = 75%
You need a 25% deposit, plus stamp duty and fees, to buy at this LTV.
Information, not advice. Example figures are fictional and for illustration only.