We use LTV as one of the criteria to assess the security of a bridge loan. The LTV or Loan-To-Value is the ratio between the amount of money we lend against a property versus the amount that the property or development site is worth.
Valuations are assessed by one of our panel of RICS (Royal Institution of Chartered Surveyors) valuers and represent today’s value rather than a speculative amount in the future.
Loan-to-Value calculations include all fees and interest. As conservative lenders we only finance bridge loan projects with a maximum loan-to-value of 75% and review valuations on a regular basis.