Buy a home · UK
Loan-to-Value (LTV) Calculator
Work out your loan-to-value when buying or remortgaging, from the price and deposit or your current value and balance, and see which rate band you fall in and how much more would reach the next one.
LTV is your mortgage divided by the property value. An estimate to help you plan, not a mortgage offer or advice.
- Loan-to-value
- 90.0%
- Rate band
- 85 to 90% · fewer deals
- Deposit (10%)
- £25,000
- Mortgage
- £225,000
About £12,500 more deposit would take you to 85% LTV, often a cheaper rate band.
How loan-to-value works
LTV compares what you are borrowing with what the property is worth. Take the mortgage, divide it by the value, and turn it into a percentage. The rest is the share you own outright: your deposit when buying, or your equity when you already own. A lower LTV means the lender is risking less, which is why it tends to come with a better interest rate.
Once you know your LTV, see what the mortgage itself would cost with the mortgage repayment calculator.
Common questions
What is loan-to-value (LTV)?
Loan-to-value is the size of your mortgage as a percentage of the property's value. Borrow £180,000 against a £200,000 home and your LTV is 90%. The rest, the part you own outright, is your deposit or equity.
Why does LTV matter?
Lenders price mortgages in LTV bands, and a lower LTV is less risk to them, so it usually means lower interest rates. Dropping under a round number like 90%, 80% or 60% can move you into a cheaper band and noticeably cut your monthly payment.
What is a good LTV?
The lower the better for the rate you are offered. 60% or below tends to get the best deals; 75% and 80% are strong; 90% and 95% have fewer, pricier options. Many first-time buyers start around 90% to 95% and bring it down over time as they repay and prices change.
How do I lower my LTV?
Put down a bigger deposit when buying, or build equity when remortgaging by repaying the mortgage and through any rise in the property's value. Even a small move under the next band threshold can be worth it for the better rate.
How do I work out my LTV for a remortgage?
Use your current property value and your outstanding mortgage balance instead of the price and deposit. Your LTV is the balance as a percentage of the value, so a £250,000 home with £150,000 still owing is 60%. A lower LTV at remortgage can move you into a cheaper rate band, so it is worth checking before you switch.
Is LTV the same as a deposit?
They are two sides of the same sum. Your deposit (or equity) plus your mortgage equals the property value. A 10% deposit means a 90% LTV mortgage; a 25% deposit means 75% LTV.
About this calculator
LTV is a simple ratio of the mortgage to the property value. The rate bands shown are the thresholds lenders commonly use, though each lender sets its own. This is an estimate to help you plan, not a mortgage offer or financial advice. Last updated June 2026.