LTV loan to value

potatoefeet66

Please can someone explain How are LTV loan to values calculated? Thank you......

ACG

Say a house is £100k, and you want a mortgage for £40k, the LTV would be 40%.

Its basically the loan amount as a percentage on the properties value or purchase price (whichever is the lower).

GMS

Will this be a never ending thread like the OP's previous one where everybody was wrong and committing fraud?

prisat

Let us consider, property that you are going to buy is 100,000 GBP.

Assume, if you have 20,000 in cash (in banks or cash is immediately available to be dispensed) to pay as your Deposit, then your LTV will be 80 % (because for a property worth 100k you have a 20k deposit which is 20 % of the property value which is 100k and hence you are expecting a 80 % of the property value as loan).

Simon_gloster

The shortest opening one liner ever to encompass the longest thread in the world.

potatoefeet66

Thank you. Got it.

So is the LTV always based upon purchase price when it is lower than market value?. What if purchase is below market value? Would that have to be considered in risk assessment by underwriter upon assessing porting of a reducing existing balance. Lets for arguments sake accept existing loan is portable subject to meeting current criteria.

If a condition of an existing mortgage requires that upon application a valuation fee is paid i.e £355.00, that fee, if refundable would be returned, when, if no valuation was conducted.

Oh by the way nothing has altered the fact that lender committed frauds in falsifying a regulated process.

Thrugelmir

Purchase price is normally the market value if the transaction is conducted at arms length.

Simon_gloster

Episode 3 commences.

As confirmed loan / value x 100% is of the purchase price or if valued lower of the valued amount.

Whats the latest on your self cert application? There I've said it. :-)

potatoefeet66

Simon_gloster wrote: »

Episode 3 commences.

As confirmed loan / value x 100% is of the purchase price or if valued lower of the valued amount.

Whats the latest on your self cert application? There I've said it. :-)

Self cert nor any other application was ever conducted. Application received unsigned, as it was falsified. This is a documented fact along with all of the other falsifications carried out by lender.

This matter will be resolved by the courts.

kingstreet

Lenders take the lower of purchase price or valuation and the loan to value is the mortgage amount, divided by that lower amount.

So, purchase price £120,000, value £150,000 and mortgage amount £90,000.

LTV is £90,000 / £120,000 or 0.75 (75%).