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.

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.

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.

Loan-to-value (LTV) calculator | your band

What mortgage puts you in each LTV band

Lenders price in bands, and the thresholds are round numbers: 60%, 75%, 80%, 85%, 90% and 95%. What matters is which side of one you land on, because the band sets the rate you are quoted. The table gives the largest mortgage that still sits inside each band at a range of property values, so you can see how far you are from the next one down.

Property value	60.0% LTV	75.0% LTV	80.0% LTV	85.0% LTV	90.0% LTV	95.0% LTV
£100,000	£60,000	£75,000	£80,000	£85,000	£90,000	£95,000
£150,000	£90,000	£112,500	£120,000	£127,500	£135,000	£142,500
£200,000	£120,000	£150,000	£160,000	£170,000	£180,000	£190,000
£250,000	£150,000	£187,500	£200,000	£212,500	£225,000	£237,500
£300,000	£180,000	£225,000	£240,000	£255,000	£270,000	£285,000
£350,000	£210,000	£262,500	£280,000	£297,500	£315,000	£332,500
£400,000	£240,000	£300,000	£320,000	£340,000	£360,000	£380,000
£500,000	£300,000	£375,000	£400,000	£425,000	£450,000	£475,000

The largest mortgage that keeps you inside each band. Borrow a pound more and you are in the band above. The value that counts is the lender's own valuation, not the asking price or what a portal estimates.

What an LTV band is actually worth

Everyone says a lower LTV gets a better rate. The Bank of England publishes what that is worth, because it tracks the 75% and 90% bands as separate series of advertised rates. In August 2026 the average quoted two-year fix was 4.92% at 75% LTV and 5.16% at 90%, a gap of 0.24 percentage points. Across 2026 that gap ran between 0.24 and 0.43 percentage points.

Holding the loan steady and changing only the rate, here is what those two quoted averages cost a month over 25 years.

Loan	At 4.92% (75% LTV)	At 5.16% (90% LTV)	Difference a month	Over 25 years
£100,000	£580	£594	£14	£4,203
£150,000	£870	£891	£21	£6,305
£200,000	£1,160	£1,188	£28	£8,407
£250,000	£1,450	£1,485	£35	£10,508
£300,000	£1,740	£1,782	£42	£12,610

Source: Bank of England quoted household interest rates, series IUMBV34 and IUMB482, read 11 September 2026. These are weighted averages of what lenders advertise on standardised products, not an offer · the same loan is priced at both rates to isolate the rate gap, and in practice a lower band also means borrowing less. Your own rate depends on a lender assessing your circumstances.

Working out your LTV for a remortgage

The figures change when you are remortgaging rather than buying, and this is where people trip up. Your LTV is what you still owe divided by what the property is worth today. Not the price you paid, and not the mortgage you originally took out. Switch the calculator above to Remortgaging and it asks for those two numbers instead.

That distinction usually works in your favour. Every monthly payment has chipped away at the balance, and if the property has gained value since you bought, both halves of the sum have moved the right way. Someone who bought at 90% LTV can be well inside the 75% band a few years later without having done anything beyond paying the mortgage. Since the band sets the rate, it is worth working out before you start comparing deals, because it decides which deals you are comparing.

The one figure you do not control is the valuation. A lender values the property itself, and that number is the one used, not a portal estimate or what the neighbour's house sold for. If you come out just the wrong side of a threshold, paying the balance down to reach it can be worth more than the payment itself · see how remortgaging works for the rest of the process, and the mortgage repayment calculator for what a new rate does to the monthly figure.

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, or read loan-to-value explained for how the bands change the rate you are offered.

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. What a band is worth in money comes from the Bank of England quoted-rate series rather than from an estimate of ours. This is an estimate to help you plan, not a mortgage offer or financial advice. Last updated September 2026.