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- Loan to Value LTV - |
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Loan to value (LTV) is a figure arrived at by taking into account the value of an object being financed (be it a car or a house) and the size of the deposit, and is expressed as a percentage. For example, if a car is being bought for £5,000 (V) and the borrower is paying a £1,000 deposit, the loan will be £4,000 (L). The LTV will therefore be (L/V) x 100%, or (£4000 divided by £5000) x 100% = 0.8 x 100 = 80%. The lower the LTV, the smaller the risk to the lender (who might have to sell the item should the borrower fail to pay). A loan where no deposit is paid would have an LTV of 100%.
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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| Think carefully before securing other debts against your home. Your home may be reposessed if you do not keep up repayments on your mortgage or any other debt secured on it. Loans secured on your home. |
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© 2007 LoanLine - Loan to Value - LTV |
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