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What does Loan To Value (LTV) mean?

Your Loan to Value (LTV) is the value of your property compared to the size of your outstanding mortgage balance. For example, if a property is valued at £200,000 and the mortgage balance is £120,000, the LTV would be 60% as the outstanding mortgage balance is 60% of the value of the property.

Please be aware that your LTV can increase or decrease if there are any changes to the value of your property or outstanding mortgage balance.

How a Loan to Value is calculated

The Loan to Value is calculated in the following way:

Examples of different Loan to Value calculations are shown below.

These examples are for illustrative purposes only.

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