Financing
LTV (Loan to Value)
Mortgage amount as percentage of property value
Full Definition
Loan to Value represents the mortgage amount divided by the property value. A £150,000 mortgage on a £200,000 property has 75% LTV. Buy-to-let lenders typically offer maximum 75% LTV, requiring 25% deposit. Lower LTVs secure better interest rates. LTV affects both initial purchase and remortgage opportunities.
Related Terms
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ICR (Interest Coverage Ratio)
Rental income compared to mortgage interest payments
Bridging Loan
Short-term finance for quick purchases or refurbishment
Remortgage
Replacing existing mortgage with new one
Equity
Property value minus outstanding mortgage
Leverage
Using borrowed money to amplify returns
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Landlord with 4+ mortgaged properties