Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
What it means
Loan to value (LTV) compares the amount borrowed with the value of the property. For a home purchase, a larger deposit usually means a smaller loan and a lower LTV. On an existing mortgage, LTV can change as the loan is repaid or the home's value changes. It measures how much of the property value is covered by borrowing; it does not show whether the monthly payments fit someone's budget.
Example
A home costs £200,000. With a £40,000 deposit and a £160,000 mortgage, LTV is 80% (£160,000 divided by £200,000). The deposit is 20% of the price.
Why it matters
Lenders may offer different mortgage deals at different LTVs. A fall in a home's value can raise its LTV even when the owner has made every payment.
Also known as
loan-to-value
LTV
Related terms
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Deposit to income ratio
A home-buying deposit compared with the buyer's or buyers' yearly income.
Read more -
Housing affordability
Whether people can manage the cost of buying or renting a home.
Read more -
Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
Read more -
Mortgage income multiple
The mortgage amount divided by the borrower's or borrowers' annual income.
Read more
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