The loan-to-value (LTV) ratio is one of the main risk assessment measures used by lenders to assess a person's suitability for a mortgage. It expresses the loan amount as a percentage of either the purchase price of property or its appraised value.
For example, if you put down a deposit of 30% on a property, the LTV would be 70%. Or, if you're buying a property for £300,000 and the mortgage amount is £240,000, the LTV is 80% (the £240,000 loan divided by the £300,000 purchase price).
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