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What is LTV?

4th February 2021

Lenders often talk about the LTV requirement. LTV is an acronym for Loan to Value Ratio. This is a term used to describe the ratio of a loan to the value of the property purchased. For example if you borrow £161,000 to purchase a property valued at £230,000 the LTV is 161,000/230,000 or 70%, the remaining 30% is your equity.

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Robson Macintosh & Company Ltd.
15 Manor Place, Edinburgh, Scotland, EH3 7DH
Tel: 0131 226 6700 Email: enquiries@robmac.co.uk
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Registered in Scotland No. - SC232903.
Registered office: 15 Manor Place, Edinburgh, EH3 7DH
Robson Macintosh & Company Limited is an Independent Financial Adviser authorised and regulated by the Financial Conduct Authority FCA Reference number 217853. The guidance and or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk
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