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Buying Budget

Loan-to-Value (LTV) Calculator

Estimate only

Loan-to-value (LTV) is the size of your mortgage as a percentage of the property value. Lenders price mortgages in LTV bands, so crossing a threshold — often at 90%, 85%, 80%, 75% and 60% — can change the rates available to you.

Loan-to-value

80.0%

Your equity is £60,000 (20.0% of the property value).

Equity

£60,000

Equity percentage

20.0%

To reach the next band

£15,000

Would put you at 75% LTV

Why LTV matters

A lower LTV generally means lower risk for the lender, which is usually reflected in lower interest rates and a wider choice of products. LTV also affects remortgaging: if property values fall, your LTV rises even though your balance has not changed. This is general information, not advice about which product to choose.
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How this calculation works

LTV is the mortgage divided by the property value, expressed as a percentage. The “next band” figure shows how much smaller your mortgage would need to be to fall into the next standard lending band below your current LTV.

LTV = (mortgage amount ÷ property value) × 100
equity = property value − mortgage amount
extra deposit for band B = mortgage − (property value × B%)

Assumptions

  • The property value used is the lender's valuation, which may differ from the price you agree.
  • Standard bands of 60, 65, 70, 75, 80, 85, 90 and 95% are used for the next-band figure.

Limitations

  • Lenders may apply their own bands and may down-value a property.
  • Some products add fees to the loan, which can push LTV over a threshold.

Last reviewed: 1 September 2026 · Calculation version 1.0.0

Understanding the gap to the next LTV band

A worked example at a band boundary

A £180,000 mortgage on a £200,000 property is 90% LTV. An 85% target would mean a £170,000 mortgage, so the extra cash needed is £10,000 if the value stays unchanged. This is arithmetic, not a promise of a better deal: the lender may have different bands and will use its accepted valuation, not necessarily the agreed sale price.

Why a down-valuation matters

If the lender values that property at £190,000, the same £180,000 loan is about 94.74% LTV. To return to 90%, the loan would need to fall to £171,000, requiring £9,000 less borrowing. A buyer may need more cash, a renegotiated price or a different product; a remortgaging owner may face fewer options. Always test the calculation with a lower valuation as well as your preferred figure.

Use equity carefully

Equity is the property value minus secured borrowing, not money already in your bank. Selling and remortgaging can involve costs, and additional secured loans need to be considered by the lender. LTV does not measure income affordability. A low LTV can coexist with an unaffordable payment, so check repayments and the household budget separately.

Further reading: MoneyHelper — mortgages and buying a home. Examples are illustrations using stated inputs, not quotes or personal recommendations.

See our method and limitations or report a correction.

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