Loan to value means the % borrowed against the value of the property.
Example – The property you are purchasing is £200,000, and you have a deposit of £20,000 this would be a loan to value (LTV) of 90%.
Your home now is valued at £500,000. However you still have an outstanding mortgage of £250,000- so your LTV is 50%.
Generally, the higher the loan to value, the interest rate will increase. Therefore if you have a larger deposit or equity in your home, you will typically achieve a better interest rate.