Martin Lewis emphasizes the importance of Loan to Value (LTV) ratios for first-time buyers and those remortgaging. The LTV is calculated by subtracting the deposit and any existing equity from the property value, impacting the mortgage rates available. A lower LTV leads to lower interest rates, typically dropping at 10% intervals, with significant savings seen when moving from 95% LTV to 60%. Home values can change, affecting future LTV calculations, which is crucial for both buyers and homeowners seeking refinancing options.
Understanding the Loan to Value (LTV) ratio is crucial for securing favorable mortgage rates, with lower LTV ratios resulting in cheaper monthly payments.
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