LTV stands for loan-to-value, this is the size of your mortgage in relation to the value of the property you may want to purchase.
For example, if you had a mortgage of £300,000 and you were buying a property that costs £400,000, your LTV could be 75%. This means that 75% of the property’s value would be paid for by your mortgage and 25% is paid for out of your own money (your deposit).
However, the higher your LTV, generally the riskier it is for the lender offering you a mortgage. Lenders have to consider the amount of equity you have in the property as, if they need to repossess, this will affect their chances of recovering their funds.
This is because the value of the property could fall below the price you originally paid for it, and if you’ve taken out a large mortgage, the mortgage amount could end up being higher than the property’s value.
If you have a high LTV (and therefore a small deposit),the mortgage rates available to you could be far less competitive as a result of the additional risk.
Conversely, The more money you can put down as a deposit, the lower your LTV and potentially, the lower the mortgage rate.
Here at Liddle Perrett, We’re able to give you the peace of mind, your query will be dealt with promptly and without fuss, this is just one of the many benefits we can provide.
You’re only a small call away:
For Mortgage advice please contact:
David Liddle on 0345 894 8441 or firstname.lastname@example.org.
For Protection advice please contact:
Sarah Buckingham on 0345 894 8441 or email@example.com.
For General Insurance advice please contact:
Jade Topliss on 0345 894 8441 or firstname.lastname@example.org.
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Liddle Perrett Ltd is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.