How to work out LTV
The easiest way to work out your loan to value ratio is to take away your deposit amount from the value of the house, then work out the difference as a percentage.
For example, if your house is valued at £250,000 and you have a deposit of £50,000, you would need a mortgage of £200,000.
To calculate your LTV ratio:
200,000 ÷ 250,000 = 0.8
0.8 x 100 = 80%
This gives you an 80% loan to value ratio
The larger your deposit, the lower your LTV. Think about how much you can afford upfront before applying for a mortgage.
