Home / Glossary / Loan to value (LTV)
What is Loan to value (LTV)?
Loan to value (LTV) is the size of your mortgage as a percentage of the property's value. A £150,000 loan on a £200,000 property is 75% LTV.
Why it matters to landlords
Buy-to-let lenders commonly lend up to around 75% LTV, and lower LTVs usually get better rates. Your deposit or equity makes up the rest.
When you remortgage, a higher valuation lowers your LTV and may unlock a cheaper product or release equity.
LTV also affects the deposit you need: at 75% LTV on a £200,000 purchase the deposit is £50,000, before fees and Stamp Duty. Lenders value the property themselves, and their figure is the one used.