What is Loan to Value (LTV)?

Loan to Value, often seen as LTV, is a measure used by lenders for mortgages and secured loans to assess the risk level. LTV is measured as a percentage of your loan amount against the value of the asset you are securing against, usually property. Your loan to value percentage can be cumulative across numerous secured loans 

How to Calculate LTV

It is simple to calculate the loan to value percentage of your agreement. Simply divide the loaned amount by the value of the asset it is secured against and multiply by 100. 

For example, if you have an outstanding mortgage balance of £80,000, an outstanding homeowner loan balance of £10,000, your loan amount is £90,000. If your property value is £100,000 then your Loan to Value (LTV) would be 90%.