Loan-to-value (LTV) calculator

Your loan-to-value is the mortgage as a percentage of the property's value. Lower LTVs usually unlock lower rates.

Why LTV matters

Lenders commonly price mortgages in LTV bands, often in steps such as 60%, 75%, 80%, 85%, 90% and 95%. Moving just below a band boundary can bring a lower rate on the whole loan, so it's worth checking how close you are. The exact bands and rates vary by lender, and the difference between adjacent bands is typically 0.1–0.5 percentage points on the rate.

How it's calculated

LTV = mortgage ÷ property value × 100. For a purchase, the lender uses the lower of the price and its own valuation; for a remortgage, its valuation of the property today. That second point matters: if your home has risen in value since you bought, your LTV has fallen even though the balance is the same, and you may qualify for a cheaper band without putting in more money.

Three worked examples

Situation	Value	Mortgage	LTV	To reach the next band
First-time buyer, 5% deposit	£250,000	£237,500	95%	£12,500 more deposit for 90%
Mover, 20% deposit	£300,000	£240,000	80%	£15,000 more for 75%
Remortgage after prices rose	£400,000 (bought at £340,000)	£300,000	75%	£60,000 to reach 60%

The remortgage row shows the quiet win: the owner borrowed at 88% LTV, and growth alone moved them to 75%. A broker checking the lender's valuation approach before an application can tell you which band you'll be assessed in.

What different LTVs mean in practice

95%. The smallest deposit most lenders accept for a standard purchase. Fewer products, higher rates, and the Government's Mortgage Guarantee Scheme sits behind part of this market (GOV.UK). See the first-time buyer guide.
90%. Noticeably more choice and lower rates than 95%. Often the first target for a buyer with a gifted deposit; see the gifted deposit guide.
85% and 80%. The mainstream range where most lenders compete hardest.
75% and below. The best rates. Buy-to-let lending normally starts here, and 60% LTV is the usual top tier for residential pricing.
Over 100%. Negative equity: the loan exceeds the value. Remortgaging to a new lender is usually not possible, though your existing lender may offer a product transfer.

Lowering your LTV

Three levers: a bigger deposit (including a family gift), a lower price, or overpaying before you remortgage. The overpayment calculator shows how fast regular overpayments reduce the balance; clearing £15,000 ahead of a remortgage can be the difference between the 80% and 75% bands. Lenders also apply a separate test on top of LTV: the affordability assessment under MCOB 11.6, so a low LTV doesn't by itself mean the loan is available. The borrowing calculator covers that side.

Common questions

Does LTV change over the life of the mortgage?

Yes, in both directions. Repayments reduce the balance; the valuation moves with the market. Lenders reassess at remortgage or product transfer, not month to month.

Is LTV the same as the deposit percentage?

They add up to 100% at purchase: a 15% deposit is an 85% LTV. After that, "equity" replaces "deposit" and includes any growth in value.

What LTV do I need for a buy-to-let?

Most buy-to-let lenders cap at 75% or 80% LTV, and the rental income must cover the interest by a margin; see the buy-to-let guide.

Sources checked 13 October 2026.

Other calculators

Estimates only, not advice. These calculators do arithmetic on the numbers you enter. They don't check your credit file, apply a lender's affordability rules or know which products you qualify for. Nothing you type is stored or sent anywhere. For a figure you can act on, speak to an FCA-authorised mortgage adviser.