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What exactly is that loan to value ratio?

What exactly is that loan to value ratio?

It’s the proportion of the mortgage you are trying to get facing the value of the house we wish to purchase.

For example, if your property you desired to get try ?150,one hundred thousand and also you got a beneficial 10% deposit of ?15,one hundred thousand, you’d you need that loan away from ?135,100000.

So you can calculate this new LTV price, you might divide the borrowed funds number because of the worth of the fresh possessions and you will proliferate from the a hundred. Very,

A top LTV price from ninety% means an elevated risk with the financial whilst means loaning a larger count and that demanding higher monthly money out of you given that borrower. Nastavi čitati What exactly is that loan to value ratio?