What is Loan to Value ?

What does loan to value mean in mortgage terms?

Loan-to-Value (LTV) is a simple but critical measure used by lenders to assess risk in a mortgage. It represents the size of the loan compared to the value of the property being purchased.

The formula is:

LTV (%) = (Loan Amount ÷ Property Value) × 100

For example, if a property is valued at £300,000 and the mortgage required is £270,000, the calculation is:

(£270,000 ÷ £300,000) × 100 = 90% LTV

This means the borrower is contributing a 10% deposit (£30,000), while the lender is funding the remaining 90%. The higher the LTV, the less deposit is required, but the greater the risk to the lender. As a result, higher LTV mortgages typically come with stricter criteria, higher interest rates, and tighter affordability checks.

As an expat what is the largest LTV mortgage can I get?

In certain circumstances it can be as high as 90%

A 90% expat mortgage offers significant advantages, particularly for overseas buyers who may want to retain liquidity or move quickly in the market.

Firstly, it dramatically reduces the deposit requirement. Instead of needing 25–30% (typical for expats), a borrower only needs 10%. This frees up capital for other investments, business use, or maintaining financial flexibility across currencies.

Secondly, it enables faster market entry. Expat buyers can secure property without waiting years to accumulate a large deposit, which is especially valuable in rising markets where prices may outpace savings.

Thirdly, it improves portfolio scaling for investors. With less capital tied into one property, funds can be spread across multiple purchases, increasing diversification and potential returns.

In short, while 90% LTV carries higher costs and stricter checks, it is a powerful tool for expats seeking flexibility, speed, and efficient use of capital.

Can we assist you?

If you are an expat looking for a new or re-mortgage, please do make contact and one of our qualified independent advisers will be happy to help.