How to calculate loan to value
LTV = mortgage amount ÷ property value × 100. A £200,000 mortgage on a £250,000 home is 80% LTV, and the other 20% is your deposit or equity.
When you buy, the value is the price or the lender's valuation if that's lower. When you remortgage, it's the lender's current valuation, and the loan is what you still owe plus any extra you want to borrow.
LTV bands and mortgage rates
UK lenders price mortgages in LTV bands, typically every 5% from 60% to 95%. Each step down usually brings a lower rate, and the best deals tend to be at 60% LTV or below. Bands are each lender's own policy, not a legal rule, so check the bands on the deals you're comparing.
Being just over a band edge costs the most, because a small extra deposit or overpayment can move you into the cheaper band. The calculator shows that amount.
Worked example
A £200,000 mortgage on a £250,000 property is 80% LTV, in the band over 75% up to 80%. Borrowing £12,500 less, with a bigger deposit or by paying down the balance before a remortgage, would bring you to 75% LTV.
Ways to lower your LTV
Save a bigger deposit, overpay your mortgage before your deal ends (most fixed and tracker deals let you overpay 10% a year without a charge) or wait for your home's value to rise. On an interest-only mortgage the balance doesn't fall, so only a rise in value lowers your LTV.
To see how overpaying cuts your balance, use the mortgage overpayment calculator .
Buying in the US?
The country choices above the inputs open separate local pages. In the US, LTV also decides when private mortgage insurance (PMI) can be cancelled under federal law, and lenders look at combined LTV across all loans on the home. Choosing United States opens that page and resets the inputs; amounts are not converted.
For a US home, use the US loan-to-value calculator with PMI and CLTV.
Inputs for the UK LTV calculator
Property value
The purchase price, or the lender's valuation if it's lower or you're remortgaging.
Mortgage amount
The amount you want to borrow, or the balance you still owe plus any extra borrowing if you're remortgaging.
CALCULATOR QUESTIONS
UK LTV calculator questions
What is a good LTV?
The lower the better. Many lenders offer their best rates at 60% LTV or below, and most mainstream deals stop at 95%.
How do I work out my LTV for a remortgage?
Divide what you'll owe after remortgaging by the lender's current valuation of your home and multiply by 100.
What's the difference between LTV and my deposit?
They add up to 100%. A 15% deposit means an 85% LTV mortgage.
Does a second charge count towards my LTV?
A second-charge lender looks at the combined borrowing secured on your home, so include the first mortgage and any other secured loans.