Lending term
LTV
Loan-to-Value ratio
Definition
The loan amount expressed as a percentage of the property's value, used by lenders to band applications by risk and to set pricing.
In more detail
Lenders publish pricing in LTV bands rather than on a continuous curve, so a small change in deposit or valuation can move an application into a cheaper or more expensive tier.
LTV also governs whether additional protections apply, such as lender-required mortgage insurance in some markets above a threshold.
Example
A 270,000 loan on a 300,000 property is 90% LTV. Adding 15,000 to the deposit moves it to 85%, which is typically a separately priced band.
Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.