How to calculate Loan To Value

Loan-To-Value Formula (LTV)

The Loan-To-Value (LTV) is used to work out the ratio between your loan balance and the market value of the property resulting in a percentage.

This formula is used to calculate the Loan-To-Value.

                        LTV % = Balance of Loan X 100
 Market Value

For example a property with a market value of £100,000 with a remaining loan balance of £85,000 has a LTV of 85%.

                        LTV % = £ 85,000 X 100
£ 100,000

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