The Best Loan to Value Calculator UK
Your LTV
Loan amount
Deposit / Equity
When you’re buying a home or remortgaging in the UK, one of the first numbers lenders look at is your Loan-to-Value (LTV). Put simply, it’s a percentage that compares the size of your mortgage loan with the overall value of the property. The lower your LTV, the less risk you pose to the lender – and usually, the better your mortgage rates will be. That’s where our Loan to Value Calculator UK comes in. Instead of working out complicated ratios by hand, you can simply enter your property price and deposit (or loan amount), and our tool instantly tells you your LTV. Whether you’re a first-time buyer, remortgaging, or exploring affordability, this calculator gives you a clear picture of where you stand.
Why LTV Matters in the UK Mortgage Market
When applying for a mortgage in the UK, lenders don’t just care about your salary, credit history, or affordability. They also pay close attention to your Loan to Value (LTV) ratio. Why? Because LTV is one of the biggest indicators of risk. A low LTV means you’ve put in a bigger deposit, so the lender has less money at risk if property values fall. A high LTV, on the other hand, means the bank is financing most of the purchase, so the risk to them is higher, and they price that risk into your interest rates.
Typical UK LTV Bands and Their Impact on Mortgage Rates
Here’s how LTV usually affects mortgage deals in the UK:
LTV Range | Deposit Required | Typical Mortgage Rate (2025) | What It Means |
60% LTV or lower | 40%+ deposit | 4.2% – 4.5% | Best deals on the market. Prime rates, the lowest interest rates. |
75% LTV | 25% deposit | 4.5% – 4.8% | Very competitive, wide choice of products. |
80–85% LTV | 15–20% deposit | 4.9% – 5.3% | Decent rates, but fewer products than at 75%. |
90% LTV | 10% deposit | 5.5% – 6.0% | Higher risk, rates jump significantly. Limited choice. |
95% LTV | 5% deposit | 6.0% – 6.5% | Only a few lenders offer this. Strict affordability checks. |
Note: Rates are examples and vary by lender. The lower your LTV, the stronger your negotiating power. Compare how a 0.5% rate change hits your payments with the FinCalc Interest Rate Comparison Calculator before you choose a fix.
Why This Matters to You
- Lower monthly payments → A 60% LTV mortgage isn’t just cheaper on interest; it usually comes with lower fees and a wider selection of products.
- Stronger approval odds → Lenders are more willing to approve mortgages with low LTV ratios because they’re less risky.
- Better remortgage deals → As you pay down your loan or property prices rise, your LTV decreases, which often qualifies you for improved rates when you remortgage.
How to Calculate LTV Mortgage
The good news? Working out your Loan-to-Value (LTV) isn’t rocket science. The calculation is straightforward and once you know it, you’ll always understand where you stand with lenders in the UK.
Formula for LTV: LTV (%) = (Mortgage Loan ÷ Property Value) × 100
Want to drop into a cheaper LTV band? Use the Savings Goal Calculator to plan the deposit you need and back-solve monthly targets.
Put simply:
- Your mortgage loan is the amount you’re borrowing from the bank.
- Your property value is either the purchase price or the lender’s valuation (whichever is lower).
- Divide one by the other, multiply by 100, and you’ve got your LTV percentage.
Example 1: First-Time Buyer
- Property price: £200,000
- Deposit saved: £20,000
- Mortgage loan: £180,000
- Calculation: (180,000 ÷ 200,000) × 100 = 90% LTV
This puts you in the high LTV bracket, meaning fewer lenders will offer deals, and the mortgage rates will be higher.
Example 2: Remortgaging in the UK
- Current property value: £350,000
- Outstanding mortgage balance: £210,000
- Calculation: (210,000 ÷ 350,000) × 100 = 60% LTV
Here, the borrower is in a strong position. With a 60% LTV, they could access some of the lowest mortgage rates available on the UK market.
Why Use a Calculator Instead of Doing It by Hand?
Yes, you can crunch the numbers with a calculator or spreadsheet, but why bother when you have a free Loan to Value Calculator UK right here on this page?
- It does the math instantly.
- It works whether you know your deposit or your loan amount.
- It avoids mistakes – one decimal slip could make a huge difference.
It also shows you your equity percentage, which lenders pay close attention to when assessing risk.
Lender Valuations Can Affect Your LTA
One important note: in the UK, mortgage lenders may use their valuation of the property rather than the price you’re paying. If the lender values your home lower than your purchase price, your effective LTV will be higher. That can impact the deals you’re eligible for.
Example:
- You agree to buy a flat for £250,000, and you’ve got a £25,000 deposit.
- By your calculation: (225,000 ÷ 250,000) × 100 = 90% LTV.
- But the bank values the flat at £240,000, not £250,000.
- New calculation: (225,000 ÷ 240,000) × 100 = 93.75% LTV.
- Result: fewer deals, higher rates.
This is why using a calculator is helpful, but you should always double-check how lenders apply their valuations.
Scroll up and use our Mortgage Loan to Value Calculator UK now. Just enter your property price and deposit (or loan amount) to see your exact LTV in seconds.
First-Time Buyer LTV Calculator
Buying your first home in the UK is exciting, but it can also feel overwhelming when lenders start throwing terms like “LTV” around. For first-time buyers, understanding your Loan to Value ratio is essential because it determines not just whether you can get a mortgage, but also the type of deals and interest rates available to you.
Why LTV Is Important for First-Time Buyers
- Small deposits = higher LTV → Most first-time buyers don’t have huge savings, which means their LTV often falls in the 85–95% range.
- Higher risk for lenders → At these levels, banks charge higher interest rates and run stricter affordability checks.
- Eligibility for government schemes → Some UK schemes, like Shared Ownership or First Homes, help reduce your effective LTV by lowering the loan size needed.
Remortgage Loan to Value Calculator
If you already own a home and are looking to remortgage, your Loan-to-Value (LTV) ratio plays a massive role in what deals you’ll be offered. In fact, for many UK homeowners, the LTV at remortgage can be the difference between saving thousands and overpaying.
Why LTV Matters When You Remortgage
- Lower LTV = Better Deals → As you pay down your loan, or if your property has risen in value, your LTV decreases. This often unlocks access to much lower interest rates.
- Equity Growth → Equity is the portion of your property you fully own (value minus mortgage). The bigger your equity, the smaller your LTV, and the stronger your bargaining power.
- Product Tiers → UK lenders typically offer the best remortgage products at 60% and 75% LTV thresholds. Even moving from 85% → 80% can unlock significantly cheaper rates.
Example: Falling LTV Over Time
- Bought a home at £250,000 with a £200,000 mortgage (80% LTV).
- After 5 years, you’ve paid down £25,000 → mortgage balance = £175,000.
- Property value has risen to £275,000.
- New LTV = (175,000 ÷ 275,000) × 100 = 63.6% LTV.
This homeowner moved from 80% LTV to below 65% LTV, which opens up some of the most competitive remortgage rates in the UK.
Example: Stuck With High LTV
- Bought a home at £200,000 with a £190,000 mortgage (95% LTV).
- After 2 years, the property value falls slightly to £195,000.
- Outstanding balance is £185,000.
- New LTV = (185,000 ÷ 195,000) × 100 = 94.8% LTV.
In this case, despite making repayments, the homeowner is still at a very high LTV due to market changes, limiting remortgage options and pushing rates higher.
How Our Remortgage LTV Calculator Helps
Our Remortgage Loan to Value Calculator UK gives you an instant picture of your current ratio. Just enter:
- Your property’s estimated current market value.
- Your outstanding mortgage balance.
In seconds, you’ll know your exact LTV and whether you’ve moved into a lower bracket, meaning you can shop for better deals.
Practical Tips to Improve Your LTV Before Remortgaging
- Overpay your mortgage → Even small overpayments can knock down your loan balance faster.
- Get a fresh valuation → If property prices in your area have risen, an updated valuation could improve your LTV instantly.
- Time your remortgage strategically → Many homeowners wait until they cross the 75% or 60% LTV thresholds to secure lower rates.
- Save for a lump-sum repayment → Adding savings towards your mortgage balance before remortgaging can tip you into a better band.
Build a remortgage war-chest for fees or overpayments with the FinCalc Regular Monthly Savings Calculator and see how fast small top-ups add up.
Key Takeaways for Remortgagers
- LTV isn’t fixed — it changes as your loan balance and property value change.
- Dropping just 5% in LTV can mean thousands saved in interest over the term.
Use our calculator to track your LTV regularly, so you’re ready when the best deals become available.
Mortgage Deposit Calculator UK (Cross-Link)
Your deposit is the single biggest factor that determines your Loan-to-Value ratio. In the UK, the size of your deposit directly affects:
- How much you can borrow,
- What interest rates will you be offered, and
- Which lenders will approve your mortgage?
This is why pairing an LTV calculator with a Mortgage Deposit Calculator UK is so useful. One shows your loan-to-value ratio, the other helps you work out exactly how much deposit you’ll need to hit the LTV band you’re aiming for.
How Deposit Size Changes Your LTV
Why Use a Mortgage Deposit Calculator UK
- Plan your savings → Know exactly how much you need to save for a 10%, 15%, or 20% deposit.
- Target a better LTV band → For example, adding just £5,000 to your deposit could bring you from 91% to 89% LTV, unlocking cheaper rates.
- First-time buyers → Can see how much deposit is required for 95% or 90% mortgages.
- Remortgagers → Can track how equity built over time reduces effective LTV (deposit-equivalent).
Check out our Mortgage Deposit Calculator UK (coming soon) to see how much deposit you’ll need for your dream home. Pair it with our Loan to Value Calculator UK to get a full picture of your mortgage options.
Mortgage Affordability & Loan to Value Ratio UK
When it comes to mortgages, two numbers decide your fate:
- How much you can afford to borrow (based on your income and expenses).
- Your Loan-to-Value ratio (LTV) (based on your deposit and property price).
Lenders in the UK use both together when deciding whether to approve your mortgage and what interest rate to offer.
Affordability Checks in the UK
UK lenders don’t just hand out mortgages based on property value they run detailed affordability checks:
- Income multiples → Most lenders cap loans at around 4.5x your annual income. For example, a £40,000 salary might get you a max loan of ~£180,000 (before factoring in LTV).
- Debt-to-income ratio → They look at your existing credit commitments (loans, car finance, credit cards).
- Stress testing → Can you still afford repayments if interest rates rise by 3%?
- Living expenses → Bills, childcare, travel, and lifestyle all play into how much you can borrow.
Even if your LTV is low (say 60%), you won’t get approved unless your income supports the loan amount.
How LTV and Affordability Work Together
- Low LTV + strong affordability → Best case. You’ll be offered the cheapest mortgage rates.
- Low LTV + weak affordability → You might still be capped on how much you can borrow, even with a large deposit.
- High LTV + strong affordability → You may get approved, but you’ll be stuck with higher interest rates due to risk.
- High LTV + weak affordability → The hardest combination — limited lenders and expensive rates.
Example: Affordability + LTV Combined
- Buyer earns £50,000 per year.
- Max loan (at 4.5x income) = £225,000.
- Property price = £250,000.
- Deposit = £25,000.
- LTV = (225,000 ÷ 250,000) × 100 = 90%.
Result: This buyer passes affordability (income supports the loan), but the high 90% LTV means limited product choice and higher mortgage rates.
Why an Affordability Calculator + LTV Calculator Works Best
Our Loan to Value Calculator UK tells you your LTV. But pairing it with a Mortgage Affordability Calculator UK (coming soon) gives you the full picture:
- How much you can borrow based on your income.
- What deposit you need to hit a specific LTV band?
- Whether lenders are likely to approve your mortgage under UK stress test rules.
This combination makes planning far easier for both first-time buyers and remortgagers.
Key Takeaways
- LTV shows risk from the property side, and affordability shows risk from your income side.
- Both need to be balanced to secure the best mortgage deal.
- Improving either (saving a bigger deposit, boosting income, or reducing debts) increases your approval chances.
Loan to Value Ratio Calculator UK – Real Examples
Sometimes the best way to understand Loan-to-Value (LTV) is to see it in action. Below are some real-world style examples of how our Loan to Value Ratio Calculator UK works, with scenarios based on common property prices across the country.
Example 1: First-Time Buyer in London
- Property price: £500,000
- Deposit: £25,000 (5%)
- Loan: £475,000
- LTV: (475,000 ÷ 500,000) × 100 = 95% LTV
At 95% LTV, this buyer is right at the edge of what most UK lenders will accept. Mortgage deals exist, but interest rates will be significantly higher compared to those at 75% or 60% LTV.
Example 2: Family Home in Manchester
- Current property value: £300,000
- Outstanding mortgage balance: £180,000
- LTV: (180,000 ÷ 300,000) × 100 = 60% LTV
This homeowner is in an excellent position. A 60% LTV usually qualifies for the very best mortgage rates on the UK market, since the lender is taking on less risk.
Example 3: Remortgage in Birmingham
- Current property value: £300,000
- Outstanding mortgage balance: £180,000
- LTV: (180,000 ÷ 300,000) × 100 = 60% LTV
This homeowner is in an excellent position. A 60% LTV usually qualifies for the very best mortgage rates on the UK market, since the lender is taking on less risk.
Example 4: Flat Purchase in Edinburgh
- Property price: £180,000
- Deposit: £9,000 (5%)
- Loan: £171,000
- LTV: (171,000 ÷ 180,000) × 100 = 95% LTV
A buyer with only 5% deposit will struggle with high interest rates and stricter criteria. However, government schemes or saving an extra 5% could drop this to 90% LTV, opening up more affordable mortgage options.
Why These Examples Matter
- They show how even a small change in deposit can shift your LTV and open up better deals.
- They reflect UK property prices in different regions, making the content relatable nationwide.
- They reinforce why using our LTV Mortgage Calculator UK is crucial before applying — it gives you clarity on where you stand.
Quick Tip
Use our Loan to Value Calculator UK at the top of this page to plug in your numbers. Whether you’re in London, Manchester, Birmingham, or anywhere else in the UK, you’ll instantly see your LTV and know which mortgage deals you can target.
Conclusion
In the UK mortgage market, your Loan to Value (LTV) ratio isn’t just another figure on an application form – it is one of the most important factors that determines what kind of deals you will be offered. A higher deposit, or more equity in your property, means a lower LTV, and this usually opens the door to cheaper interest rates, more flexible products, and a wider choice of lenders. On the other hand, a high LTV signals more risk for the bank, which often results in fewer mortgage options and higher monthly repayments.
Over the course of this guide, we have explored exactly what loan to value means in the UK, how it is calculated, and why it matters for both first-time buyers and remortgagers. We have also shown how it links directly to affordability, mortgage deposit sizes, and interest rates. In simple terms, knowing your LTV gives you the clarity and confidence to understand where you stand with lenders and what steps you may need to take to unlock a better deal.
Whether you are preparing to buy your first home, looking to move to a bigger property, or planning to remortgage at a lower rate, understanding your LTV ratio is essential. Even a small reduction in your loan to value percentage – for example, moving from 90% to 85% can save you thousands over the life of your mortgage.
That is why we created this Loan to Value Calculator UK. With a few simple inputs, you can instantly see your LTV percentage, along with your loan and deposit figures. Once you know your number, you are in a far stronger position to plan, compare mortgage rates, and negotiate with lenders. For more mortgage tools—LTV, deposit planning, affordability, and rate comparisons—start at FinCalc.
So
Don’t leave it to guesswork. Scroll back up, enter your details, and let our calculator do the hard work for you. In just a few seconds, you will know exactly where you stand, giving you the confidence to take the next step towards the right mortgage deal for your future.
Frequently Asked Questions
What is a good Loan to Value in the UK?
A “good” LTV in the UK is usually 60% or lower, because it qualifies you for the cheapest mortgage rates. Anything under 75% is still very competitive. Above 90% is considered high risk.
Can I get a mortgage with 95% LTV in the UK?
Yes, some lenders offer 95% mortgages, but the choice is limited. Expect higher interest rates, stricter affordability checks, and a requirement for strong credit history.
How do I improve my Loan-to-Value ratio?
Save a bigger deposit, overpay your mortgage balance, or benefit from a property price increase. Even dropping from 90% to 85% LTV can unlock better rates.
Does LTV affect my mortgage rate?
Absolutely. Lenders see low LTV = low risk, so they reward you with cheaper rates. High LTV = high risk, so interest rates go up.
How is LTV different from mortgage affordability?
LTV is about the property (loan vs value). Affordability is about your income and expenses. You need both to be strong to get approved.
What does the Loan to Value mortgage mean in the UK?
It means what percentage of your property’s price is financed by a mortgage. Example: a £200k house with a £50k deposit = 75% Loan to Value mortgage.
What LTV do I need to remortgage?
Most lenders offer the best remortgage deals at 60% or 75% LTV. Even small reductions in your loan balance can tip you into a better band.
Can first-time buyers get a 100% LTV mortgage?
Rarely. 100% mortgages are almost extinct in the UK. Most first-time buyers will need at least a 5% deposit, though government schemes may help.
Is Loan-to-Value important for buy-to-let mortgages?
Yes. Many buy-to-let lenders cap at 75% LTV. A lower LTV means more options and better rental stress test results.
How often should I recalculate my LTV?
Check it whenever you’re buying, remortgaging, or if your property value has changed. Even yearly recalculations help you track progress.