LTV calculator
Work out your loan-to-value ratio and find out which mortgage rate tier you are in. The lower your LTV, the better the deals available to you.
Your LTV is the single most important number when it comes to the mortgage rate you will be offered. Even moving from 85% to 80% LTV by saving a larger deposit can unlock a significantly lower rate - and over a 25-year term that difference adds up to tens of thousands of pounds.
What is LTV?
Loan-to-value is the size of your mortgage as a percentage of the property value. Borrow £180k on a £200k property and your LTV is 90%.
Why does it matter?
Lenders use LTV to assess risk. The lower your LTV, the less risk they take on, so they offer you a lower interest rate. Even a small difference in LTV can unlock a better deal.
LTV when remortgaging
Your LTV changes over time as you pay down your mortgage and as your property value changes. Check it before remortgaging - you may have moved into a better tier.
How to lower your LTV
Save a larger deposit before buying, overpay your mortgage each month, or wait for property values to rise. All three reduce your LTV over time.
Please note: This calculator is for guidance and illustrative purposes only. LTV thresholds and the rates available at each tier vary between lenders and change over time. Always check current deals with a qualified mortgage adviser or broker before making any decisions. This is not financial advice.
Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly; always verify figures with an appropriate professional or official source before acting on them.
What is loan-to-value (LTV)?
Loan-to-value (LTV) is the ratio of your mortgage balance to your property value, expressed as a percentage. If your property is worth £300,000 and your outstanding mortgage is £210,000, your LTV is 70% — you owe 70% of the property’s current value.
LTV is one of the most important numbers in mortgage finance because it determines which rate tier you qualify for. Lenders price their mortgages based on risk — a lower LTV means more equity in the property, which is lower risk for the lender, and the borrower earns a lower interest rate. The standard LTV thresholds where rates typically improve are 90%, 85%, 80%, 75%, and 60%.
How to use this calculator
Property value: Enter the current estimated value of your property, not the purchase price. For a recent purchase, these may be the same; for a property owned for several years, use your best estimate of current market value. If you are buying, enter the agreed purchase price.
Mortgage balance: Enter the outstanding balance on your mortgage, not the original loan amount. You can find this on your most recent mortgage statement or in your lender’s online portal.
If you are buying, Enter the purchase price and the loan amount (purchase price minus your deposit). This shows the LTV at the start of the mortgage — relevant for which rate you can access.
Reading the result: The calculator shows your LTV percentage and indicates which rate band you are in. It also shows how much the balance or property value would need to change to reach the next threshold — useful for understanding whether an overpayment or property growth moves you into a better rate tier.
Why LTV thresholds matter
The difference in interest rate between LTV bands can be significant. The gap between a 90% LTV rate and a 75% LTV rate from the same lender is often 0.5 to 1 percentage point. On a £200,000 mortgage, 1% is £2,000 per year in additional interest.
At remortgage time, if your LTV has fallen from 80% to 74% through a combination of repayments and property growth, you qualify for the sub-75% rates, which are typically among the most competitive available. Knowing your LTV before you start comparing means you compare the right products for your position.
Frequently asked questions
How do I find out my property’s current value? You can get an indication from online property portals (Zoopla, Rightmove) using recent sold prices for comparable properties on your street. For a precise figure, a lender will arrange a formal valuation as part of any remortgage application. Using a conservative estimate in this calculator is recommended — lenders typically value properties cautiously.
Does my LTV change over time? Yes — it changes in two ways. Your mortgage balance falls with each monthly repayment (for a repayment mortgage), reducing the LTV. And your property value changes with the market, which affects the LTV in either direction. A falling market can push your LTV up; rising values push it down.
What is negative equity? Negative equity occurs when your outstanding mortgage balance exceeds the property’s current value – an LTV above 100%. This typically limits your remortgage options to your existing lender and prevents you from selling for less than the outstanding balance without repaying the shortfall separately.
Does LTV affect whether I can remortgage? Yes- very high LTV (above 90%) limits the number of available lenders and products. At very high LTV, you may be restricted to your existing lender or specialist lenders. As LTV falls below standard thresholds, more lenders and better rates become available.
Can I use overpayments to reach a better LTV band? Yes – and this is one of the most effective uses of overpayments. If your current LTV is 76%, a targeted overpayment to bring the balance below the 75% threshold may meaningfully reduce your next fixed rate. Use the mortgage overpayment calculator to see how much you would need to overpay to reach the threshold.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
Related tools and posts
- Mortgage repayment calculator — your monthly payment at different rates
- Mortgage overpayment calculator — reduce your LTV faster
- Remortgage calculator — compare rates at your LTV
- What is LTV and why does it control your mortgage?
- What is negative equity?
- How property price growth affects your equity