What Does LTV Mean?

LTV is an acronym and the abbreviation stands for ‘Loan To Value’.

It is most commonly used when referring to a mortgage or any other loan secured against a property. The loan to value compares the size of the loan versus the value of the property. This number is a percentage.

Example of LTV

Lets say your are buying a new house for £250,000 and you have a deposit of £75,000.

Value of Property: £250,000

Size of Mortgage: £175,000

LTV: £175,000 / £250,000 x 100 = 70% LTV

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