Loan-to-Value (LTV) is a central metric in UK mortgage lending that shows how much of a property’s value you’re borrowing. For example, if a home is worth £200,000 and you borrow £160,000, that’s an 80% LTV. Lower LTVs generally lead to better interest rates because they reduce the lender’s risk.

In the UK property market, lenders often cap maximum LTVs to control exposure. While some mortgages may allow up to 95% LTV (especially in buy-to-let or specialist deals), many conventional residential products restrict LTV to 90% or lower. The LTV you qualify for affects your mortgage options, required down payment, and eligibility for certain deals.

Understanding LTV is crucial whether you’re a first-time buyer or a seasoned homeowner. Knowing your potential LTV helps plan your budget, decide on deposit size, and identify which lenders may consider your case.