How the limit is calculated
Your limit is the value of your gold multiplied by the lender's maximum loan-to-value, minus anything already borrowed against it. The rest of the value acts as a buffer for the lender in case the price of gold falls.
Lenders value gold by its purity and weight, not by what the jewellery cost to buy, so stones and craftsmanship usually add nothing. Ask the lender how they value it.
Worked example
Gold valued at £5,000 with nothing borrowed against it and a 75% loan-to-value limit gives a limit of £3,750.
If £1,000 were already borrowed against the same gold, you could borrow £2,750 more. At a 60% limit with nothing borrowed, the limit would be £3,000.
Before you borrow
You don't have to borrow up to your limit. Borrowing less leaves a bigger buffer and costs less interest.
This is an estimate. Lenders make their own decision based on your full circumstances and credit history.
Inputs for the gold loan limit calculation
Value of your gold
What the lender values your gold at, based on its purity and weight.
Existing borrowing secured on it
Anything you already owe on a loan against the same gold. Enter 0 if none.
Maximum loan-to-value
The lender's limit on borrowing as a share of the gold's value.
CALCULATOR QUESTIONS
Gold loan limit calculator questions
How is my gold loan limit worked out?
Value of the gold × the lender's loan-to-value limit, minus any existing borrowing on it.
Why can't I borrow the full value?
Lenders keep a buffer in case the gold price falls before you repay.
Does the jewellery's design count?
Usually not. Lenders value the gold content by purity and weight.
Can the limit change?
Yes. It moves with the value the lender puts on the gold and their loan-to-value limit.