Loan To Value (LTV)

    The amount loaned to the SPV divided by the estimated value of the property. The lower the percentage is, the lower the perceived risk to the lender.

    Example: Property value is £100,000, the loan is £50,000 secured against the property. £50,000 (loan) divided by £100,000 (value) equals 50%. Therefore the LTV is 50%.

    ×