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.