LTV Calculator
Calculate your mortgage LTV ratio from property value and deposit or outstanding mortgage. LTV determines which rate tiers you qualify for.
Reviewed by Richard Ross · Last updated April 2026
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.
How lenders use LTV in their pricing
UK mortgage lenders segment their product ranges into LTV "buckets" — typically 60%, 65%, 70%, 75%, 80%, 85%, 90%, and 95%. Moving from one bucket to the next lower one often reduces the rate by 0.10–0.40 percentage points. On a £200,000 mortgage, a 0.25% rate reduction saves roughly £500 per year. It is worth calculating whether a small deposit top-up to cross a LTV threshold pays back within your initial fixed rate period.
LTV and Help to Buy / Mortgage Guarantee Scheme
The UK Mortgage Guarantee Scheme (extended to 2025) allows lenders to offer 95% LTV mortgages with a government-backed guarantee on the portion above 80%. This is not a consumer-facing scheme — you apply for a normal mortgage and the lender opts into the scheme. Eligible properties must be worth £600,000 or less and be your main residence (not buy-to-let or second homes).
Source: FCA — Mortgage Conduct of Business sourcebook (MCOB), FCA Handbook (fca.org.uk/firms/mortgages). Bank of England Financial Policy Committee mortgage rules.
Further reading
Approaching a remortgage? Your LTV at renewal determines which rate tier you qualify for — and crossing a key threshold can save hundreds of pounds a year.
Remortgage LTV: how your ratio affects your next deal →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.
How is LTV calculated when remortgaging?
At remortgage, LTV = outstanding balance ÷ current property value. If you bought for £300,000 and your balance is now £220,000 but the property is worth £380,000, your LTV is 57.9% — well inside the 60% tier for best rates. Lenders typically require a desktop or physical valuation to confirm the current value.
Does a higher LTV mean I am more likely to be in negative equity?
Yes. At 95% LTV, a 6% fall in property values would put you into negative equity (owing more than the home is worth). At 75% LTV, prices would need to fall 25% to reach negative equity. This is why higher LTV products attract higher rates — lenders price in the additional risk.
What LTV do I need for the best mortgage rates?
Mortgage rates improve significantly at LTV thresholds of 90%, 85%, 80%, 75%, and 60%. The sharpest improvement is usually between 90% and 85% LTV, and again between 75% and 60%. At 60% LTV you typically access the best available rates. In 2025–26, the difference between a 90% LTV rate and a 60% LTV rate can be 1–1.5 percentage points, worth thousands per year on a typical mortgage.
How does my LTV affect remortgaging?
When remortgaging, your LTV is calculated using the current market value of your property, not the original purchase price. If property values have risen or you have paid down significant capital, your LTV may have fallen considerably since you took out the mortgage. A valuation at remortgage time establishes the new LTV. Crossing a key threshold (such as from 76% to 74%) can unlock a significantly lower rate, making an independent valuation worth requesting.
What is a combined LTV on a joint mortgage?
On a joint mortgage, the LTV is still calculated as total loan ÷ total property value — the number of borrowers does not affect the LTV ratio. However, both borrowers' incomes are used for affordability. If one borrower has a lower credit score, it may affect the rate offered even if the LTV is favourable. Each borrower's individual financial position is assessed alongside the combined LTV.
Can I overpay my mortgage to improve my LTV?
Yes — most mortgages allow overpayments of up to 10% of the outstanding balance per year without early repayment charges (ERC). Making regular overpayments reduces the outstanding balance and can push your LTV below a key threshold, unlocking better rates at your next remortgage. Even small regular overpayments (£50-£100/month) can cross a threshold within 2-3 years on a typical mortgage.
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