A percentage figure indicating the size of the mortgage on a property in relation to its value. Thus, a house worth £120K with a mortgage of £60K would have a loan to value of 50%.
Better mortgage deals are available for lower loan to values – 75% and below. At higher loan to values typically from 85% and higher, lenders are far tighter with their criteria and requirements and this is why so many people with small deposits fail to get a mortgage.
