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Loan to Value (LTV) - have I got this right.
RetroBob
Posts: 171 Forumite
I understand that the better your LTV, the better rates you get, and that generally you need 15% deposit minimum, with better rates past 25%. (What about 20%?)
Does the "value" bit count for the value of the house, or the value of the loan?
In April I'll have amassed £27k deposit, That's 20% of the value of a 130k house and 26% of a 103k mortgage (assuming I spend the full 130k).
Does the "value" bit count for the value of the house, or the value of the loan?
In April I'll have amassed £27k deposit, That's 20% of the value of a 130k house and 26% of a 103k mortgage (assuming I spend the full 130k).
0
Comments
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It's value of the house, so if the house was valued at, or sold at (bank will use the lowest of valuation or sale price) £130,000, with a deposit of £27000 your LTV would be 80%I refuse to enter a battle of wits with an unarmed opponent:rolleyes:0
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