Private lenders focus on the market value and existing debts on a property when deciding whether or not to approve a mortgage application. (mortgagebrokerstore.com)
The loan to value ratio is obtained by dividing the total value of debts on a property by its current market price to get a value that ideally should be below 85 %. (mortgagebrokerstore.com)
It is obtained by dividing the value of debts on a property by its market price. (mortgagebrokerstore.com)