LTV Calculator
Calculate your mortgage LTV ratio from property value and deposit or outstanding mortgage. LTV determines which rate tiers you qualify for.
How LTV Calculator works
What is LTV?
Loan-to-value (LTV) = (Mortgage Amount ÷ Property Value) × 100. A £240,000 mortgage on a £300,000 property = 80% LTV. LTV determines which mortgage rate tiers you qualify for — lower LTV generally means lower interest rates.
LTV rate tiers
Lenders price mortgages in LTV bands. The best rates are typically at 60% LTV. Rates increase at 75%, 80%, 85%, 90%, and 95% LTV. A small reduction in LTV (e.g., from 81% to 80%) can unlock meaningfully better rates — worth topping up your deposit if close to a threshold.
LTV for remortgaging
When remortgaging, your LTV is based on the current property value divided by your outstanding mortgage balance. Rising house prices reduce your LTV over time, potentially moving you into a better rate tier. A valuation is usually required.
Maximum LTV
Most lenders offer products up to 95% LTV. Some specialist lenders go to 100% (guarantor mortgages). For buy-to-let, the maximum is typically 75–80% LTV.
Frequently asked questions
What LTV do I need for the best mortgage rates?
The best rates are typically available at 60% LTV or below. 75% LTV products are also very competitive. There is a meaningful rate step-up at 80%, 85%, 90%, and 95%.
How do I reduce my LTV?
Either increase your deposit (before purchase), overpay your mortgage, or wait for the property to increase in value. Using an offset or ISA savings can also effectively reduce the loan balance.
What is a good LTV for a first-time buyer?
A 10% deposit (90% LTV) is the minimum for most mainstream lenders. A 5% deposit (95% LTV) is possible but involves higher rates and typically fewer lender options. 15–20% deposit (80–85% LTV) offers significantly better rates.
Does LTV affect my chance of mortgage approval?
Yes. Higher LTV mortgages are considered higher risk by lenders. At 95% LTV, affordability stress tests are applied more stringently and fewer lenders participate. Your credit score also matters more at higher LTV.
Related calculators