1. What is LTV in Remortgage?

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 remortgaging, it represents the percentage of your property's value that you're borrowing.

2. How Does the Calculator Work?

The calculator uses the LTV formula:

Where:

• New Loan Amount — The amount you wish to borrow in the remortgage
• Property Value — The current market value of your property

Explanation: The equation calculates what percentage of your property's value the new loan represents.

3. Importance of LTV Calculation

Details: LTV is crucial in remortgaging as it affects the interest rates you'll be offered. Lower LTV ratios typically qualify for better rates as they represent less risk to lenders.

4. Using the Calculator

Tips: Enter the new loan amount and current property value in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good LTV ratio for remortgaging?
A: Generally, an LTV below 80% will get you the best rates. Above 90% LTV, options become more limited and rates higher.

Q2: How often should I check my property value for LTV calculations?
A: Property values change over time. For remortgaging, get an up-to-date valuation from an estate agent or surveyor.

Q3: Can I reduce my LTV when remortgaging?
A: Yes, by paying down your mortgage, making home improvements that increase value, or waiting for property values to rise.

Q4: Does LTV affect remortgage approval?
A: Yes, lenders have maximum LTV limits (typically 85-95%) and offer better terms at lower LTV ratios.

Q5: Is LTV the only factor in remortgage rates?
A: No, your credit score, income, debt-to-income ratio, and the property itself also affect the rates offered.