LTV vs Deposit%

Bark01

How is a deposit calculated. I’ve read in numerous places that it’s deposit / value of house, but then other places mention LTV which is deposit / mortgage

I have 65k deposit and I’m looking at a 260k property

Should I be using 25% or 33% when trying to find the right mortgage?

getmore4less

Where have you read deposit/mortgage is LTV?

glentoran99

your loan to value is the value of the house v what you need to borrow.


Eg




£100,000 house


£90,000 borrowed


£10,000 deposit


LTV 90%

Bark01

getmore4less wrote: »

Where have you read deposit/mortgage is LTV?

Yep, I completely misread what I was looking at ...

scottishblondie

"LTV" is "Loan to Value", so it is the percentage of the loan versus the value of (what you are paying for) the house. In your case you have a 25% deposit and require a 75% mortgage, so your LTV is 75%.

arteh

I agree with scottishblondie, your ltv is 75%