What does the term 'Loan to Value (LTV) Ratio' mean?
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The Loan to Value (LTV) ratio expresses the relationship between the amount of capital you are borrowing and the value of the property used as security.
The standard LTV limit is 75%. This means that if your property has a value of £100,000, you will be borrowing £75,000 and will need to raise a deposit of £25,000. However there are plenty of mortgages available with much higher LTV ratios – even 100%, but it may mean paying higher interest rates as a result.
100% mortgages are quite common now and are a great help especially
for first time buyers and young professionals. Some mortgage lenders will
even offer a loan that represents more than the value of your home - up
to 110% LTV ratio.
Ask your mortgage adviser for details.
