Sorry for being silly...

But what does Max LTV mean?

Thanks

Hi Jodie,
Firstly...you're not being silly... :)

LTV stands for Maximum Loan to Value. It is usually expressed as a percentage of the total loan amount you want to borrow compared with the value of the property (you want to buy or remortgage).

For example:

A 100% LTV would be when the value of the house you want to buy is the same as the mortgage you require to buy it.

e.g. you want to borrow 180k to buy a property worth 180k (i.e. you have no deposit to put down).

In the current mortgage market you will be hard pressed to find 100% LTV mortage deals.

The better mortgage rates are usually available to those people that can put a deposit towards the cost of the property.

For example:
You elect to borrow 160k towards a property worth 180k (i.e. You have 20k for a deposit). This would give you a LTV percentage of 88%.

In the current mortgage best buy tables (as of 3rd July 2008) you'll seem some mortgage deals with LTVs as low as 75%. For a property worth 180k this means that to get that deal you'd need to have a 45k deposit to put down (to borrow the max 135k you'd need to borrow).

I hope this helps..