1. What is LTV?

The Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In Ireland, it's particularly important for mortgage applications as it affects loan approval and interest rates.

2. How Does the Calculator Work?

The calculator uses the LTV formula:

Where:

• Loan Amount — The amount you wish to borrow (in €)
• Property Value — The purchase price or valuation of the property (in €)

Explanation: The result shows what percentage of the property's value you're borrowing. Lower LTV ratios generally mean better mortgage terms.

3. Importance of LTV Calculation

Details: In Ireland, LTV ratios directly impact mortgage approval chances, interest rates, and whether you'll need mortgage insurance. Most Irish lenders prefer LTV ratios below 90% for first-time buyers and below 80% for others.

4. Using the Calculator

Tips: Enter the loan amount and property value in euros. Both values must be positive numbers. The calculator will instantly show your LTV percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is a good LTV ratio in Ireland?
A: Generally, below 90% for first-time buyers and below 80% for other buyers is considered good. The best rates are often available for LTVs below 60%.

Q2: How does LTV affect my mortgage application?
A: Lower LTV means less risk for the lender, which typically results in better interest rates and higher approval chances.

Q3: What's the maximum LTV allowed in Ireland?
A: For first-time buyers, most lenders offer up to 90% LTV. For second/subsequent buyers, it's typically 80%. Exceptions may apply in certain cases.

Q4: Does LTV include the deposit?
A: No, LTV is based on the loan amount versus property value. Your deposit is what brings the LTV down (e.g., 10% deposit = 90% LTV).

Q5: How can I improve my LTV ratio?
A: You can improve it by saving a larger deposit, finding a cheaper property, or through property value appreciation over time.