Loan to Value Ratio
The loan-to-value ratio is the percentage of the value borrowed against to the market value of your property.
For example, if you have a mortgage of £95,000 on a property worth £100,000, the loan to value is 95%. (loan amount/property value = loan to value ratio).
Alternatively, the lien holder may force a sale of the property to pay off the debt.
Click for more mortgage glossary terms relating to remortgaging.