A mortgage limit, or loan-to-value (LTV) ratio, is the maximum amount a lender will lend compared to the property’s value. It’s expressed as a percentage.
For example, if you’re buying a house for £200,000 and the lender’s LTV limit is 80%, they will lend you up to £160,000.
You’ll need to cover the remaining £40,000 with your deposit. LTV limits vary by lender based on factors like your credit score, income, and property type.
Higher LTV ratios usually mean higher interest rates due to the increased risk for the lender.