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Loan-to-Value (LTV) Calculator

Work out your loan-to-value percentage, your deposit or equity amount, and which lender pricing tier your mortgage is likely to fall into.

£
£

Implies a deposit or equity of £60,000.00.

Loan-to-value (LTV)80.0%
Deposit / equity20.0%
Deposit / equity amount£60,000.00

Up to 80% LTV

Good availability, though rates step up slightly from the 75% tier.

How this calculator works

Loan-to-value (LTV) is one of the most important numbers in UK mortgage pricing. It's simply your mortgage (loan) amount expressed as a percentage of the property's value:

LTV = (loan amount ÷ property value) × 100

The complement of your LTV is your deposit percentage (on a purchase) or equity percentage (on a remortgage) — the two always add up to 100%. Lenders group mortgage products into LTVtiers (commonly up to 60%, 75%, 80%, 85%, 90%, and 95%), and generally price lower tiers more cheaply, since a bigger deposit or equity cushion means less risk to the lender if property prices fall. This calculator shows your exact LTV, your deposit/equity figures, and the indicative tier your result falls into.

Worked example

Say you're buying a property valued at £300,000 with a £240,000 mortgage. Your LTV is exactly 80% (£240,000 ÷ £300,000), meaning your deposit makes up the remaining 20%, or £60,000. That LTV falls into the "up to 80%" tier — a solid, widely available pricing band, though rates step up slightly compared with the 75% tier below it. By contrast, a £225,000 mortgage on a £250,000 property gives a 90% LTV, with a £25,000 (10%) deposit — a common threshold for first-time-buyer deals, but typically at noticeably higher rates than the 80% tier, since it's a smaller equity cushion for the lender.

What affects your result

  • Deposit size — the single biggest lever on a purchase; even a modest increase in deposit can move you into a cheaper LTV tier.
  • Property valuation — on a remortgage, your LTV depends on the lender's current valuation of your property, not necessarily what you paid for it; rising or falling local prices change your LTV even if your mortgage balance hasn't moved.
  • Mortgage balance paid down — every capital repayment reduces your loan amount and therefore your LTV over time, gradually moving you into cheaper tiers even without overpaying.
  • Overpayments — a lump-sum or regular overpayment can be a deliberate strategy to cross a tier threshold (for example, from 81% down to 79%) ahead of a remortgage application.
  • Tier thresholds — because pricing tiers have hard cut-offs, being just above a threshold (like 81% instead of 80%) can cost more than the extra 1% might suggest, since it can push you into the next tier's whole rate band.

A note on accuracy

The LTV tiers shown are indicative industry-standard bands used for illustration, not a specific lender's criteria — actual product cut-offs vary between lenders and change over time. This calculator does not factor in valuation fees, product fees, or a lender's specific risk appetite. For guidance on how LTV affects mortgage availability and cost, see MoneyHelperand the Financial Conduct Authority.

Frequently asked questions

What is my loan to value (LTV)?

Your LTV is your mortgage (loan) amount expressed as a percentage of your property's value. For example, a £240,000 mortgage on a £300,000 property is an 80% LTV, meaning your deposit or equity makes up the remaining 20% (£60,000). Enter your figures into the calculator above to see your exact LTV and which lender pricing tier it typically falls into.

How do I calculate LTV?

Divide your mortgage (loan) amount by the property's value, then multiply by 100 to get a percentage: LTV = (loan amount ÷ property value) × 100. For a purchase, use the purchase price as the property value; for a remortgage, use a recent valuation or estimate of your current property value, and your outstanding mortgage balance as the loan amount.

What LTV do I need for a mortgage?

Most UK mainstream lenders will lend up to 90-95% LTV, meaning a minimum deposit of 5-10%. However, the cheapest rates are generally reserved for lower LTV tiers — typically 60% and below — with rates increasing in steps as LTV rises through 75%, 80%, 85%, 90%, and 95% bands. There's no single 'required' LTV; it's a trade-off between how much deposit you have and the rate you'll be offered.

Does a lower LTV always mean a lower interest rate?

Generally yes — lenders see lower-LTV borrowing as lower risk, since there's more equity cushion if property prices fall, so they typically price it with lower rates. Crossing below a tier threshold (for example, from 81% to 79%, moving from the 85% tier into the 80% tier) can unlock a meaningfully cheaper product, which is why some buyers or remortgagers make a small overpayment specifically to cross a threshold before applying.

How is LTV different from my deposit percentage?

They're two sides of the same coin: your deposit (or equity, if remortgaging) percentage plus your LTV always add up to 100%. An 80% LTV mortgage means a 20% deposit; a 90% LTV mortgage means a 10% deposit. Lenders and comparison sites usually quote products by LTV rather than deposit percentage, so it's worth getting comfortable converting between the two.

Related calculators

Mortgage Affordability CalculatorWork out how much you could borrow based on your income.Mortgage Repayment CalculatorSee your monthly payment once you know your loan amount.Remortgage CalculatorCompare deals once you know your current LTV.