The LTV (or loan-to-value) of a mortgage refers to the amount of loan you’re looking for in relation to the value of the property. It reflects the proportion of the property that’s mortgaged and the part that’s yours (also known as your equity), and is always written as a percentage figure.
So, if you were seeking a mortgage at 85% LTV, you’d have a loan that’s worth 85% of the value of your property. Effectively, this means that 85% of the property will be mortgaged, and you’d own the remaining 15%.
The figure also determines the deposit you’ll need. A mortgage at 85% LTV would mean you’d need to put down a deposit of 15%, whereas if you sought a mortgage at a lower or higher LTV, the deposit requirements would change accordingly.
Our mortgage calculator helps you to see how much your mortgage might cost you each month.
Our how much can I borrow calculator gives you a range of how much a lender might consider lending you under a mortgage. This calculation is only an indication only.
Read our How much can I borrow for a mortgage guide to find out more about what can impact your potential sum of borrowing.
If you want to pay your mortgage quicker then consider reducing your mortgage term. Your monthly payments will increase but your total borrowing cost over time will reduce.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.