LTV stands for Loan-to-Value. It's a ratio that compares the amount of a loan to the value of the property being purchased. It's expressed as a percentage and is calculated by dividing the loan amount by the property value. For example, if you're buying a home for £200,000 and taking out a loan for £180,000, your LTV would be 90%.
LTV is an important factor in the mortgage approval process. Lenders use LTV to assess the risk of a loan and determine the interest rate and other terms. In general, the higher the LTV, the higher the risk to the lender, and the more difficult it may be to obtain a loan or the higher the interest rate may be. Some lenders may only approve loans with LTVs below a certain threshold, such as 80%. If you are purchasing a buy to let the maximum LTV is typically 75%.
The lower the LTV the better is the general rule of thumb. The highest LTV that a first time buyer could achieve would be 95%, you can not get a 100% LTV Mortgage.
It's important to keep in mind that LTV is just one of many factors that lenders consider when evaluating a mortgage application, and that there is no set LTV requirement for all borrowers. Your credit score, income, and other factors will also play a role in determining your eligibility for a loan and the terms you'll be offered.