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LTV ratio shows what percentage of the property value is mortgaged. As equity builds through repayments and price growth, LTV falls, unlocking better mortgage deals.

공식

LTV% = Loan amount / Asset value × 100% (same formula, context differs by asset type)
Loan
Total loan amount (Currency)
Value
Current market value of asset (Currency)

단계별 가이드

  1. 1LTV = Mortgage balance / Property value × 100
  2. 2Remortgaging at lower LTV tier saves money
  3. 3Overpayments accelerate LTV reduction
  4. 4Rising property values also reduce LTV passively

풀어진 예시

입력
Mortgage £200k, home £280k
결과
LTV = 71.4% — competitive rate territory

자주 묻는 질문

How does LTV apply to investment property?

BTL LTV limits are stricter: typically max 75% vs 80% for owner-occupied. Higher rate premium. Lender sees pure investment as higher risk (vs owner incentive to pay).

What if property value drops?

LTV rises. At 80% LTV, a 10% property price drop → 88.9% LTV. Some loans have LTV covenants; breach triggers acceleration. This is "negative equity" risk.

Is LTV the same as loan-to-cost?

No. LTC is loan / total cost (acquisition + development). LTV is loan / current value. LTC matters at origination; LTV is ongoing risk measure.

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