How LTV works
Loan to value is the amount borrowed as a percentage of the property's value. For a second charge loan, lenders add your existing mortgage to the new loan to get the combined LTV.
Why your LTV matters
Lenders price in bands. Moving from 76% to 74% combined LTV can open up lower rates and more lenders.
Frequently asked questions
What is a good LTV?
Below 60% usually gets the best pricing. Most homeowner loans go up to 75% to 85% combined.
Does LTV use the purchase price or valuation?
For purchases, the lower of the two. For remortgages and second charges, the lender's valuation.