Loan-to-value (LTV) is the size of your mortgage as a percentage of the property value. It matters because lenders reserve their cheapest rates for lower LTVs — the more deposit or equity you have, the better the deals you can access. Rates usually improve in steps at 90, 85, 80, 75 and 60 percent.
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Frequently asked questions
What is a good LTV?
Lower is better for rates. Below 60 percent typically unlocks the best deals; 90 to 95 percent means fewer options and higher rates.
How do I lower my LTV?
A bigger deposit, overpayments, or a rise in the property value all reduce your LTV over time.