What is loan-to-value?
Loan-to-value is the number lenders reach for first. Here is what it means, how it is worked out, and why it shapes almost every property finance decision.
Updated July 2026 · 5 min read · By Housn Capital
What loan-to-value means
, usually shortened to LTV, is the size of a loan compared with the value of the property it is secured against. It is written as a percentage. It is the first thing most lenders look at, because it tells them how much of the property's value they are being asked to lend against.
The lower the loan-to-value, the more of your own money is in the deal, and the more the property is worth over and above the loan. That headroom is what protects the lender if the property has to be sold, so a lower loan-to-value usually opens up better terms.
How it is worked out
The sum is simple: the loan divided by the property's value. A worked example makes it clear.
Property value
£500,000
Loan
£350,000
Loan-to-value
70%
Your stake
The remaining 30%
Those figures are only there to explain the maths. They are not what Housn offers, and they are not a rate — the actual terms on any deal depend on the property, the plan, and the lender you are matched with.
Why it matters across every product
Loan-to-value runs through all three types of property finance, though the detail changes.
Bridging
The loan is judged against the property and its loan-to-value rather than income, which is part of why bridging can move in days, not weeks.
Development finance
Lenders also look at the loan against the finished value, the , not just today's site value.
Commercial mortgages
A lower loan-to-value tends to mean a wider choice of lenders and more room to negotiate the terms.
Where Housn fits
Working out the right loan-to-value for a deal is a conversation, not a calculator. Housn Capital introduces UK property professionals to a specialist commercial finance broker who can look at the property, the and the numbers, and set out realistic options. Tell us about your deal and we will match you to the right person.
Frequently asked questions
It is the loan expressed as a percentage of the property's value. Borrowing £350,000 against a property worth £500,000 is a 70% loan-to-value.
Next step
Thinking about bridging for a project?
Tell us a little about your deal and we’ll introduce you to a specialist broker who can talk through the options.
Housn Capital Limited. Not FCA regulated. B2B non-regulated lending only. Company No. 16418877. General information, not financial advice.