Blended Loan to Value, often abbreviated as blended LTV, is a property development finance UK metric that aggregates the Loan to Value ratios of all individual loans within a single development project. By weighting each loan according to its size and proportion of total funding, it provides a comprehensive view of overall project leverage. Lenders and developers use blended LTV to assess total financial exposure, measure risk, and determine borrowing capacity across multiple funding sources. This metric is particularly important for projects with a mix of senior, mezzanine, and other financing layers, offering insight into the stability and resilience of development funding.
This sits beneath Blended Leverage Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Blended Loan to Cost, as both are closely related measures used to assess similar aspects of performance or risk.
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