/ Author: SPF

LTV means loan-to-value, which is how much a mortgage, (loan) is in relation to how much your property is worth (its value).

It is usually quoted as a percentage figure so, for example, if you have a mortgage of £360,000 and a house that isbworth £400,000, you have an LTV or loan-to-value of 90%.

LTV is taken into consideration when providers set mortgage interest rates, and usually a lower LTV means you can get a lower mortgage rate as this represents less risk for the bank or provider.

It is important if you are a first time buyer because if you don’t have a lot for a deposit then the loan-to-value will be higher, which will usually mean a higher interest rate.

It is also something to consider if you are coming to the end of a fixed rate as your loan-to-value may have decreased sufficiently for you to benefit from re-mortgaging.

Whatever your circumstances, with SPF’s wide range of mortgages and friendly expert advice, we will find the best mortgage to suit your LTV and to suit you.