Precision Utility
Loan to Value
Calculator
Best Rates
≤ 60%
Max LTV UK
95%
Work out your loan-to-value ratio in seconds. Enter your property value and mortgage amount to see your LTV percentage, equity position and lender risk band. Whether you are buying for the first time, remortgaging or reviewing your current deal, knowing your LTV helps you understand which mortgage rates you qualify for.
Property & Loan Details
Your LTV Ratio
80.0%
Equity
£60,000
Equity %
20.0%
Risk Band
Standard
LTV Ratio
80.0%
Equity
£60,000
Equity %
20.0%
Risk Band
Standard
How the loan-to-value calculator works
Enter the current market value of the property using the slider or by typing the amount directly into the input field. This should be the full value of the property, whether you are buying, remortgaging or simply reviewing your position.
Next, enter your mortgage or loan amount. This is the total amount you are borrowing or currently owe on the property. The calculator accepts values from £0 up to £2,000,000 for both fields.
The calculator instantly divides your loan amount by the property value and multiplies by 100 to give your LTV percentage. It also shows your equity in pounds, your equity as a percentage, and which lender risk band your LTV falls into. Lower LTV ratios unlock better mortgage rates, so understanding where you sit is essential when comparing deals.
Results update automatically as you adjust either slider, so you can quickly model different scenarios — for example, seeing how a larger deposit or a cheaper property would change your LTV and the rates available to you.
Understanding LTV and mortgage rates in the UK
Loan to value is one of the most important numbers in the UK mortgage market. Lenders use it to decide how much risk they are taking on. A higher LTV means the lender is financing a larger proportion of the property, leaving less of a buffer if house prices fall.
LTV risk bands
- Under 60% LTV — Excellent. You will qualify for the very best mortgage rates on the market. Lenders see this as very low risk because you have substantial equity.
- 60% to 75% LTV — Good. Rates are competitive and you have a solid equity cushion. Most remortgage deals fall into this range.
- 75% to 85% LTV — Standard. Rates are reasonable but noticeably higher than at 75% or below. This is a common range for buyers with a moderate deposit.
- 85% to 90% LTV — Higher rate. You are borrowing a large proportion of the property value and will pay more in interest. Fewer deals are available at this level.
- 90% to 95% LTV — High risk. This is the maximum most high-street lenders will offer. Rates are the highest and your equity buffer is slim, meaning you are more vulnerable to negative equity if prices fall.
Improving your LTV even by a few percentage points can move you into a cheaper rate band. For instance, increasing your deposit from 10% to 15% drops your LTV from 90% to 85%, which could save you hundreds of pounds a year in interest. If you already own a home, making overpayments or benefiting from property price growth will gradually reduce your LTV over time.
Frequently asked questions
What is loan to value (LTV)?
Loan to value (LTV) is a ratio that compares the size of your mortgage with the value of the property you are buying or own. It is expressed as a percentage. For example, if you buy a property worth £250,000 with a £200,000 mortgage, your LTV is 80%. The remaining 20% is your equity or deposit. Lenders use LTV to assess risk — the higher your LTV, the more you are borrowing relative to the property value.
How does LTV affect mortgage rates?
Lenders offer lower interest rates to borrowers with lower LTV ratios because they represent less risk. Mortgage rates typically drop at key LTV thresholds such as 90%, 85%, 80%, 75% and 60%. For example, a borrower at 60% LTV will usually be offered a significantly lower rate than one at 90% LTV. Even a small reduction in your LTV can move you into a cheaper rate band and save thousands over the life of the mortgage.
What is the maximum LTV you can get in the UK?
Most UK lenders offer mortgages up to 95% LTV, meaning you need a minimum deposit of 5%. Some specialist lenders may offer up to 100% LTV through guarantor mortgages or specific schemes, but these are less common and typically come with higher interest rates. First-time buyers can access 95% LTV mortgages through many high-street lenders.
How can I improve my LTV ratio?
You can improve your LTV in two ways: increase your deposit or equity, or choose a less expensive property. If you already own a home, making overpayments on your mortgage reduces the outstanding balance and lowers your LTV. Property price increases also reduce your LTV over time because the value of your home rises while your mortgage balance stays the same or decreases.
What LTV do I need to remortgage?
Most lenders require an LTV of 85% or lower to offer competitive remortgage deals. If your LTV is above 90%, your options will be limited and the rates available will be higher. The best remortgage rates are typically available at 60% LTV or below. Before remortgaging, get an up-to-date property valuation so you know your current LTV.
What is negative equity and how does it relate to LTV?
Negative equity occurs when your outstanding mortgage balance is greater than the current value of your property, resulting in an LTV above 100%. This can happen if property prices fall after you buy. In negative equity, you owe more than your home is worth, which makes it very difficult to remortgage or sell without making a loss. Keeping your LTV well below 100% provides a buffer against falling property prices.