Berks & Bucks Finance
What is LTV?
- All types of mortgages
- All types of people
- All types of property
No Spam - Just Advice 👇
1
Step 1
Understanding loan-to-value (LTV)
Loan to Value, commonly referred to as LTV, represents the percentage of a property’s value that is financed through a mortgage.
How LTV works
For example, if you are purchasing a home valued at £200,000 and you have saved a £40,000 deposit, you will require a £160,000 mortgage. This scenario results in an LTV calculation as follows:
£160,000 ÷ £200,000 = 80% LTV
Calculate your LTV here
Importance of LTV
- A lower LTV indicates a larger deposit, which often leads to more favourable mortgage rates.
- Conversely, a higher LTV suggests a smaller deposit, which may limit your options and potentially result in higher interest rates.
Common LTV ranges
- 60% LTV: Typically offers the best rates available.
- 75% LTV: Provides a good variety of mortgage options.
- 85-90% LTV: Requires a smaller deposit but presents fewer deals.
- 95% LTV: Represents the minimum deposit scenario, associated with higher risk and elevated rates.
Quick Tip:
To improve your LTV ratio and possibly save more money over time, consider increasing your deposit amount when purchasing a property.
WHY CHOOSE US
- Support from start to finish
- Advice accessible to all
- Trusted & stress-free advice
- Friendly, personable advisors
Let’s talk about your mortgage needs
You don’t need all the answers yet. We can talk through your situation, your plans, and what’s realistically possible before making any decisions.