Loan to Value (LTV) Calculator UK
Calculate your exact Loan to Value ratio from your property value and deposit or loan amount. Discover which interest rate bracket you qualify for and how much you could save by crossing key LTV thresholds.
Loan to Value (LTV) Calculator
Enter your property purchase price or valuation and either your cash deposit or required mortgage loan to see your exact percentage and risk tier.
Property & Borrowing Figures
Calculate your Loan to Value ratio to see which mortgage risk bracket you fall into.
Your Loan-to-Value (LTV) Ratio
Mortgage Loan
£255,000
85.0% of value
Deposit / Equity
£45,000
15.0% of value
80.1% to 85% LTV
Standard deposit tier — widely accessible, rates slightly higher than at 75% LTV.
Want to see rates for your exact LTV?
Compare LTV Deals With an Adviser →What is Loan to Value (LTV) in UK Mortgages?
Loan to Value (LTV) is the percentage ratio of your mortgage loan compared to the total appraised market value or purchase price of the property.
For example, if you purchase a home valued at £300,000 with a £60,000 deposit (20%), you need a mortgage of £240,000. Your Loan to Value is:
Lenders use LTV as a direct metric for investment risk. A lower LTV means you hold more equity in the property, offering greater protection for the lender if property values decline. In exchange for lower risk, lenders offer significantly cheaper interest rates.
LTV on Purchases vs Remortgages
LTV is based on the lower of the agreed purchase price or the surveyor's official valuation. Your deposit makes up the remaining equity.
LTV is based on your current property's market value versus your remaining mortgage balance. If your home has increased in value since purchase, your LTV automatically drops, unlocking cheaper remortgage rates.
The 6 Key UK Mortgage LTV Brackets
UK lenders group mortgage products into distinct risk bands. Interest rates typically decrease each time you cross down into a lower tier:
Lowest Market Rates
Requires a 40%+ deposit or equity. Lenders offer their sharpest headline interest rates and lowest arrangement fees. Widest lender choice across high-street banks and building societies.
High-Street Sweet Spot
Requires a 25% deposit. Highly competitive tier with dozens of mainstream fixed and tracker deals. Rates are usually only marginally higher than 60% LTV.
Standard Move Tier
Requires a 20% deposit. Broad lender participation and reasonable pricing. Often represents a significant pricing improvement compared to 85% or 90% LTV.
Moderate Deposit Tier
Requires a 15% deposit. A popular threshold for second-time buyers and first-time buyers with good savings. Readily available across the market.
10% Deposit Tier
A critical entry point for first-time buyers. Lending criteria are stricter and credit scoring thresholds are higher than at 75% LTV.
5% Deposit Tier
Maximum standard residential lending limit. Higher interest rates reflect increased lender risk. Clean credit history and stable employment are essential.
The "Cliff Edge" Effect: Why Crossing a Tier Saves Money
Mortgage rates do not scale gradually—they jump at fixed intervals: 95%, 90%, 85%, 80%, 75%, and 60%.
If your borrowing puts you at 80.5% LTV, you will be priced under the 85% LTV product matrix. By contributing just an additional £1,500 to £3,000 to reduce your LTV to exactly 80.0%, you cross into a cheaper pricing tier.
A reduction of just 0.35% on a £250,000 mortgage saves approximately £50 to £75 every month, which equates to over £3,000 to £4,500 saved across a typical 5-year fixed rate.
Tip for Remortgagers
If your property has gained value since you purchased, ask your adviser to review recent local sale comparables before choosing a new deal.
A desktop or physical valuation that comes in £15,000 higher could pull your current loan from 77% LTV down to 74% LTV, instantly qualifying you for competitive lender rates reserved for the 75% tier.
Frequently Asked Questions About Loan to Value
What is a good Loan to Value ratio for a mortgage?
Generally, an LTV of 75% or lower is considered very good, granting access to extremely competitive interest rates. An LTV of 60% or lower is the optimal bracket for accessing the lowest fixed rates available in the UK. However, if you are buying your first home, 90% or 95% LTV is normal and widely supported by specialist and mainstream lenders.
Can I get a mortgage with a 100% LTV (no deposit)?
True 100% LTV mortgages without deposit or security are extremely rare. Some specialized guarantor mortgages allow 100% borrowing if a family member places funds into a locked savings account or offers equity in their own home as security. There are also specialized rental-track products for long-term tenants with spotless payment histories.
Does LTV affect how much income multiple I can borrow?
Yes. Lenders often cap their highest income multipliers (such as 5.0x or 5.5x) at lower LTV thresholds (e.g. 75% or 80% LTV). At 90% or 95% LTV, high-street lenders typically restrict maximum borrowing to 4.5x salary to mitigate risk.
How does property down-valuation affect my LTV?
If an independent surveyor values the property below your agreed purchase price, the lender will base their LTV calculation on the lower valuation figure. This increases your calculated LTV, requiring either a larger cash deposit to make up the difference or renegotiation with the seller.
Unlock the Best Rates for Your LTV
Whether you are purchasing with a 5% deposit or remortgaging with substantial equity, finding the lender offering the lowest rate for your exact LTV requires expert market knowledge.
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