An LTV mortgage, also known as Loan-to-Value mortgage, is a type of mortgage that calculates the loan amount in relation to the appraised value or purchase price of a property.
LTV represents the percentage of the property’s value that is being financed through the mortgage loan.
For example, in a 70% LTV mortgage, the loan is 70% of the properties value, and the remaining 30% is paid upfront in what is known as a deposit or down payment.
Deedle Finance connects users with a wide range of mortgage products tailored to their needs. Whether you’re a first-time homebuyer, looking to refinance an existing mortgage, or seeking an investment property loan, Deedle Finance offers a diverse selection of LTV mortgages such as:
With Deedle Finance, finding the right LTV mortgage has never been easier. Start exploring your options today and take a step closer to homeownership or achieving your real estate goals.
The Loan-to-Value ratio is calculated by dividing the mortgage loan amount by the appraised value or purchase price of the property (whichever is lower) and multiplying it by 100 to get a percentage.
For example, if you borrow £200,000 to purchase a home appraised at £250,000, your LTV ratio would be 80% (£200,000 / £250,000 * 100).
LTV is important because it helps lenders assess the risk associated with a mortgage.
Higher LTV ratios indicate a higher risk for the lender, as borrowers have less equity in the property. Lower LTV ratios, on the other hand, show a lower risk because borrowers have more substantial equity.
Yes, more or less! LTV mortgages are commonly available for various types of properties. However, eligibility criteria may vary between lenders, and certain property types, such as investment properties or unique structures, may have different LTV restrictions or requirements.
You can get an LTV mortgage on…
Yes, the Loan-to-Value ratio can change over time.
Yes! Deedle considers people for LTV mortgages even if they have bad credit, although we may need to contact specialist lenders for this. Fill in our form and we can match you with the perfect mortgage.
Yes, you can! Refinancing can be a good option to lower your Loan-to-Value ratio. If your property has appreciated in value or you have made significant mortgage payments, you may be able to refinance to a new loan with a lower LTV ratio. This can result in better terms, such as lower interest rates or the removal of PMI if the new LTV ratio falls below the threshold.
Yes, for example if property values are expected to appreciate significantly, a higher LTV ratio allows you to benefit from the future value increase without requiring a larger down payment upfront. They are also a viable choice for people who can afford to pay monthly instalments but who do not have a large down payment saved.
