It represents the ratio of your mortgage loan compared to the total value of the property you're purchasing. For example, if you're buying a house for £100,000 and have a £20,000 deposit, you would need a mortgage to cover the remaining 80% of the property's value. In this case, your LTV would be 80%.

In general, a lower LTV gives you more options and often better interest rates compared to a higher LTV.

As you pay off your mortgage, your LTV decreases. This means that when it’s time to remortgage, your LTV is typically lower than it was when you first bought the property.
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