LTV 100% and upward

As the credit crisis unfolds in the USA, banks have been reacting here in the UK by decreasing the amount they are willing to lend on the basis of the value of your home.

The LTV or Loan To Value is a percentage value of the equity in your home. Sound complicated? Well its actually quite straight forward - if you're home is worth £200,000 and you have a mortgage of £100,000, then you would have £100,000 equity. So, if you wanted a loan of £100,000 that loan would have an LTV of 100%.

Now what?

Well if you've got a good credit history its unlikely to be a problem. However, younger people and those with poor credit histories are going to struggle to get above 90% from the time being.