Is a loan with a higher LTV (e.g. 70%) less secured? │ Bondster

Is a loan with a higher LTV (e.g. 70%) less secured?

Is a loan with a higher LTV (e.g. 70%) less secured?

December 26, 2021

No, it is not. With higher LTV (combined with market volatility), it is more likely that a forced sale can be initiated. The investment may thus be terminated prematurely but the level of security is not affected, and the investor always receives the invested money back including the interest for the period.


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