40%, 50%, and 60% LTV (Loan-to-Value) mortgages refer to different loan-to-value ratios based on the proportion of the property’s value that you are borrowing.
With a 40% LTV mortgage, you would be borrowing 40% of the property’s value and providing a 60% deposit or equity. This means you would need to contribute a significant down payment, which can result in more favourable loan terms and potentially lower interest rates. This is good for people with large savings.
A 50% LTV mortgage indicates that you are borrowing 50% of the property’s value, while providing a 50% deposit or equity. Likewise, 60% LTV mortgage, you are borrowing 60% of the property’s value and supplying a 40% deposit or equity.