What is an LTV ratio?

LTV ratio stands for loan-to-value ratio. Your LTV ratio is used by lenders to decide how risky it is to lend you the money to buy your home.

It compares how much of the property you will own – i.e. how much deposit you can put down in relation to the property’s value – to how much they will need to lend to you to make up the difference. The lower your LTV ratio, the better the mortgage rate you’re likely to be offered.