Loan-to-value (LTV) calculator
Loan-to-value is your mortgage as a percentage of the property value. Buy a £250,000 home with a £50,000 deposit and you borrow £200,000, which is 80% LTV. Lower LTV means less risk to the lender and usually a lower rate, with rates stepping down at 90%, 85%, 80%, 75% and 60%. Slipping just under a threshold can unlock a cheaper band, so a slightly bigger deposit can pay for itself. This free calculator shows your LTV and its band. No email, nothing stored.
Work out your loan-to-value
Free. No email needed. Runs in your browser, stores nothing.
Buying? Enter your deposit. Remortgaging? Enter the equity you hold (value minus your current balance).
Loan-to-value
80.0%
Mortgage needed
£200,000
Worked example: a £50,000 deposit on a £250,000 property means a £200,000 mortgage, which is 80% LTV. Up to 80% LTV: still a wide choice of deals. Change the figures for your own case.
Indicative LTV bands only. Actual rate bands and thresholds vary by lender and product, and LTV is one factor among affordability, credit and the property. Not a quote and not advice. A regulated broker can confirm the real bands available to you.
The bands lenders price to (indicative)
| LTV | Deposit or equity | Typical effect on rate |
|---|---|---|
| 60% or less | 40% or more | Usually the lowest rates |
| Up to 75% | 25% | Strong, competitive band |
| Up to 80% | 20% | Wide choice of deals |
| Up to 85% | 15% | Rates edge up, choice still broad |
| Up to 90% | 10% | Fewer deals, higher rates |
| Up to 95% | 5% | Top mainstream band, priced highest |
Indicative pattern of how lenders band rates by LTV, not a quote. Each lender sets its own thresholds and pricing.
Why a threshold matters more than a percent
Rates do not rise smoothly with LTV; they step at boundaries. Being at 81% is priced like 85%, not like 80%, so nudging your deposit up enough to land at 80% can drop you a whole band. That is often the single cheapest way to improve your rate. See how much deposit you need and, once you know your loan, the repayment calculator.
Common questions
What is loan-to-value (LTV)?
Loan-to-value is the size of your mortgage as a percentage of the property value. If you buy a £250,000 home with a £50,000 deposit, you borrow £200,000, which is 80% LTV. The rest, your deposit or the equity you already hold, is the other 20%. LTV is one of the biggest levers on the interest rate a lender offers.
Why does LTV affect my mortgage rate?
A lower LTV means the lender is risking less against the property, so it charges less. Rates step down at set thresholds, commonly 90%, 85%, 80%, 75% and 60%. Slipping just under a threshold, for example from 81% to 80%, can move you into a cheaper band, which is why a slightly bigger deposit sometimes pays for itself many times over.
How do I lower my LTV?
Put down a bigger deposit, buy a slightly cheaper property, or on a remortgage, wait until you have repaid more of the balance or the property has risen in value. Even a small change that takes you under the next band boundary can unlock a lower rate. This calculator shows which band you are in so you can see how close you are to the next one.
Is LTV the same on a remortgage?
The idea is the same, but instead of your deposit it is your equity that sets it: your outstanding balance as a percentage of the current property value. If your home has risen in value or you have overpaid, your LTV falls, which can open cheaper deals at your next remortgage. Get an up-to-date valuation before assuming a band.
Working out your overall budget? See how much can I borrow.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 21 July 2026