Merlin Mortgage Management Ltd

A I B I C I D I E I F I G I H I i I J I K I L I M I N I O I P I Q I R I S I T I U I V I W I X I Y I Z

(L)

Leasehold : The buyer of a property owns the property for a set number of years, but doesn't own the land on which it stands. See also Freehold.

Let-to-Buy Mortgage (LTB) : This is a mortgage where the borrower's current property is let to other tenants and the rental income is used to cover the mortgage repayments on a new property bought as the borrowers main residence. When Lenders calculate how large a loan the borrower can afford to repay on LTB, they do so primarily on the basis of projected rental income, rather than salary income multiples.

Libor-Linked Mortgage : This is a variable mortgage that is either above or below the London Inter-Bank Offered Rate by a set percentage within a set period. The Libor rate is set independently every 3 months. It is often associated with Lenders that offer loans to borrowers with elements of Adverse Credit History.

Life Policy : See Term Assurance.

Loan To Value (LTV) : This is the percentage figure of the loan amount in relation to the property value. For instance a £100,000 property bought with a mortgage of £70,000 has an LTV of 70%. The higher the LTV, the higher the interest rate charged will be; above certain LTV's a Higher Lending Charge comes into effect.