Loan-to-Value (LTV) Calculator

Loan-to-Value is the percentage of the property value that you are borrowing, worked out as the mortgage amount divided by the property value, multiplied by 100. A £180,000 mortgage on a £200,000 property gives 90% LTV. The lower the figure, the better the rates you can reach, because the lender's risk falls as your own stake rises. This calculator works in both directions: enter a property value and deposit to see your LTV, or enter a target LTV to see the deposit you would need. It also shows which tier your deposit lands in and the typical rate difference between tiers.

UK lenders price in 5% bands, running 60, 65, 70, 75, 80, 85, 90 and 95, and each step down cuts the rate by roughly 0.2-0.3 percentage points. Rates rose again through 2026: Moneyfacts put the average two-year fix at 5.73% on 15 September, up from 4.84% in March, with the best 60% LTV deals roughly 1 to 1.5 points cheaper than 95% LTV ones. The best pricing sits at 60% and stays competitive up to 75%, with clear steps up above 80% and again above 90%. Finding an extra 5% deposit is worth £20-£60 a month on a £200,000 loan, which is why the last few thousand pounds of a deposit often matter more than the first few.

Two points on the scale behave like cliff edges rather than steps. At 90% the stress tests get tougher, and at 95% the product range narrows to government-backed lending. The maximum for most residential mortgages is 95%, buy-to-let usually stops at 75-80%, and first-time buyer schemes reach 95%. Anyone sitting within a few thousand pounds of the next band down is usually better off waiting and crossing it.

First-time buyers have had access to 95% lending since 2021 through the government-backed Mortgage Guarantee Scheme, which covers properties up to £600,000 and insures lender losses above 80% LTV in the event of default. The scheme was extended to June 2026 and is expected to be replaced by 'Freedom to Buy'. Products at 95% typically cost 0.5-1.0% more than the equivalent at 90%. Some lenders go further with family-assisted products at 100% LTV, marketed as springboard, family deposit or guarantor mortgages, where a relative's savings or property provide the security instead of a cash deposit.

At remortgage your LTV is recalculated against the current market value rather than the price you originally paid, and that catches people out in both directions. A house bought for £300,000 with a £270,000 mortgage starts at 90%. Five years later, worth £350,000 with the mortgage paid down to £240,000, it sits at 69%, which opens up the best rate bands without the owner doing anything beyond keeping up the payments. Where values have fallen instead, you may be limited to a product transfer with your existing lender rather than free to switch.

Buy-to-let runs on its own arithmetic. Lenders usually want 25-40% down, capping LTV at 60-75%, and PRA rules add a rental cover test, under which the rent normally has to exceed 145% of the mortgage interest calculated at a stressed rate of 5.5%. Top-slicing, where personal income covers a rental shortfall, has become common since the 2017 PRA changes. Limited company structures face different LTV caps but keep full tax relief on mortgage interest, which individual landlords lost under Section 24.

Negative equity means the balance exceeds the home's value, an LTV above 100%. It is rare in 2026 given general price growth, but the response matters if it happens. Panic-selling crystallises the loss, so borrowers who can afford the payments are usually better off holding on until values recover. Remortgaging with a different lender is off the table, though a product transfer with your existing lender normally is not. Overpayments do more good here than anywhere else, because they reduce LTV directly. The Mortgage Charter, agreed in 2023, sets out protections for borrowers facing payment difficulties.