📐 Loan to Value (LTV) Calculator

Your LTV ratio, equity position and the mortgage rate band you fall into

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Your LTV Position

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loan to value
Your Equity—
Rate Band—
To Reach Next Band—
Lenders price mortgages in 5% LTV bands — 60%, 75%, 80%, 85%, 90%, 95%. Dropping into a lower band typically unlocks meaningfully better rates.

What is LTV?

Loan-to-value is your mortgage as a percentage of the property’s value. £240,000 borrowed against a £300,000 home = 80% LTV, with 20% equity. It’s the single biggest factor (after credit history) in the mortgage rate you’re offered.

Why LTV Bands Matter

Lenders price in bands: the best rates typically sit at 60% LTV and below, with steps at 75%, 80%, 85%, 90% and 95%. The jump between 90% and 75% can be worth 0.5–1% on your rate — hundreds of pounds a year per £100,000 borrowed.

How to Improve Your LTV

  • Overpay your mortgage (see our overpayment calculator)
  • Home improvements that genuinely add value
  • At remortgage, get the property properly valued — rising prices lower your LTV automatically

Frequently Asked Questions

What is a good LTV?

Below 80% opens up competitive rates; 60% or lower gets the very best. Above 90% rates rise noticeably as lender risk increases.

How do I work out LTV?

Divide the mortgage amount by the property value and multiply by 100. 240,000 divided by 300,000 times 100 = 80% LTV.

Does LTV change over time?

Yes — every repayment reduces the loan, and any rise in property value increases your equity, both lowering your LTV.