Glossary of funding terms
Welcome to the Acorn.finance glossary
Here’s where we’ll help you to understand some of the jargon used in the funding business.
If you have any questions around terms we or anyone else has used, please drop us a line and we’ll add your query to the finance glossary.
Loan to Cost (LTC) Understanding the Essence:Loan to Cost (LTC) is a pivotal metric in property development financing. It represents the percentage of the total project cost covered by the loan. The calculation is straightforward: LTC = [ (Loan amount)/(Project cost) ] * 100 This then shows the amount of the total cost that is… Read…
Loan-to-Value (LTV) ratio is a fundamental metric in property finance, playing a pivotal role in determining the risk associated with a mortgage and influencing interest rates. Understanding LTV is crucial for both borrowers and lenders as it directly impacts the dynamics of property transactions. What is Loan-to-Value (LTV) Ratio? The Loan-to-Value (LTV) ratio is a… Read…
In the dynamic landscape of property investment, securing a buy-to-let mortgage can present challenges, especially when interest rates are on the higher side. One strategic approach that has gained traction is “top slicing.” Let’s delve into what top slicing is and how it becomes a valuable tool when interest rates pose affordability hurdles. What is… Read…