Loan-to-value (LTV)
Loan-to-value, or LTV, is the size of your mortgage as a percentage of the property's value.
Also known as: LTV, loan to value
If you borrow £180,000 to buy a £200,000 home, your LTV is 90%. A larger deposit means a lower LTV, and lenders usually offer lower interest rates at lower LTV bands such as 60%, 75% or 85%.
Your LTV can fall over time as you repay the loan or the property rises in value, which may help you get a better rate when you remortgage.
An authorised mortgage adviser can explain how this applies to your circumstances, and MoneyHelper offers free guidance. Your home may be repossessed if you do not keep up repayments on your mortgage.
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9 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.