LTV Maximum Loan

tvrulesme

New Member
Joined
Dec 23, 2020
Messages
1
Office Version
  1. 365
Platform
  1. MacOS
Hi, this should be really simple but it's hurting my head.

I have a known amount of savings (lets say £50,000) and some known LTV percentages from a mortgage company.
70% LTVInterest Only
75% LTVPart & Part
85% LTVRepayment

I would like to know the maximum loan amount based on the above criteria. Have worked this out with a goal seek on a known house value of 100,000 but there must be an easy way to do this so I can work out the maximum house price I should be looking at based on my current savings. Lets assume that the monthly repayments would always be affordable (haha)

DepositLTVHow do I calculate this to change Max House Value?TypeMax House Value
£30,000​
70% LTV
333.33%​
Interest Only
100000​
£25,000​
75% LTV
400.00%​
Part & Part
100000​
£15,000​
85% LTV
666.67%​
Repayment
100000​

Many thanks in advance.
 

Excel Facts

Add Bullets to Range
Select range. Press Ctrl+1. On Number tab, choose Custom. Type Alt+7 then space then @ sign (using 7 on numeric keypad)
Not sure if this totally answers your question, but I've put this sheet together which calculates the entire amortization schedule of the loan based on 30yrs. Enter the downpayment, interest rate and the desired monthly payment. It will calculate your maximum loan amount and also the corresponding LTV.

Cell Formulas
RangeFormula
E3E3=1-(E2/E1)
E5E5=+(E1-E2)
C6:C17C6=+E5*($C$2/100)/365*30
D6:D17D6=+ChangeValue60-C6
E6:E17E6=+E5-D6
B7:B17B7=+B6
Named Ranges
NameRefers ToCells
ChangeValue60=Sheet1!$B$6B7, D6:D17
ChangingValue=Sheet1!$B$6B7, D6:D17
MaxLoan=Sheet1!$E$1E5, E3


NOTE: You will need to copy the last line down so that it has 360 payments. I couldn't paste the entire sheet here due to a character limitation.

You will also need this snippet of VBA added to the applicable worksheet. This will perform a goal seek anytime a value is changed on the sheet.

Private Sub Worksheet_Calculate()
Application.EnableEvents = False
Range("E365").GoalSeek Goal:=0, ChangingCell:=Range("E1")
Application.EnableEvents = True
End Sub
 
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