Loan-to-Value (LTV) Calculator

Loan-to-Value (LTV) ratio is the percentage of the property value that you are borrowing. It is calculated as: LTV = (Mortgage amount ÷ Property value) × 100. A £180,000 mortgage on a £200,000 property gives a 90% LTV. The lower your LTV, the better mortgage rates you can access.

UK lenders typically offer their best rates at 60% LTV, with competitive rates up to 75% LTV. Rates increase noticeably above 80% LTV, and again above 90%. The maximum LTV for most residential mortgages is 95%. For buy-to-let, the typical maximum is 75-80%. First-time buyer schemes may offer up to 95% LTV.

This calculator works in both directions: enter a property value and deposit to see your LTV, or enter a target LTV to see what deposit you need. It also shows which LTV tier your deposit places you in and the typical rate difference between tiers.

How LTV bands affect your mortgage rate in practice. UK lenders price mortgages in 5% LTV bands: 60%, 65%, 70%, 75%, 80%, 85%, 90%, 95%. Each step up reduces the rate by ~0.2-0.3 percentage points. As of May 2026, typical 2-year fixed rates are: 60% LTV ~4.20%, 75% ~4.50%, 85% ~4.70%, 90% ~4.90%, 95% ~5.50%. The biggest cliff edges are at 90% (where stress tests get tougher) and 95% (where only government-backed Mortgage Guarantee Scheme products apply). Saving for an extra 5% deposit can save £20-£60/month on a £200,000 loan.

First-time buyers and the 95% LTV market. Since 2021, the government-backed Mortgage Guarantee Scheme has allowed lenders to offer 95% LTV mortgages on properties up to £600,000 (with government insuring losses above 80% LTV in case of default). The scheme was extended to June 2026 and is expected to be replaced by 'Freedom to Buy'. First-time buyer 95% products are typically 0.5-1.0% more expensive than 90% LTV. Many lenders also offer 100% LTV via family-assisted products (springboard, family deposit, guarantor) where parents provide collateral.

Why your LTV at remortgage matters more than you think. When your current fixed deal ends, LTV is recalculated based on the current market value, not the original purchase price. If your home has appreciated, your LTV automatically drops — moving you to a better rate band. A house bought for £300,000 with £270,000 mortgage (90% LTV) might be worth £350,000 after 5 years, with mortgage paid down to £240,000 — that is 69% LTV, unlocking the best rates. If values fell, you may be stuck in 'product transfer' deals rather than able to switch lenders.

Buy-to-let LTV rules are stricter. BTL mortgages typically require 25-40% deposit (60-75% LTV maximum), with PRA rental cover requirements: rent must usually exceed 145% of mortgage interest at a stressed rate of 5.5%. For higher-rate taxpayers and limited company landlords, the calculations differ. Top-slicing (using personal income to cover any rental shortfall) is increasingly common since the 2017 PRA changes. Special purpose vehicles (Ltd companies) for BTL face different LTV caps but allow full mortgage interest tax relief (which individuals lost via Section 24).

Negative equity — what to do if LTV exceeds 100%. If your mortgage balance is higher than the home's value (LTV >100%), you are in negative equity. Rare in 2026 due to general price growth, but if it happens: (1) do not panic-sell — if you can afford payments, hold on until values recover; (2) you cannot remortgage with another lender in negative equity, but can usually do a 'product transfer' with your existing lender; (3) overpayments are highly effective because they directly reduce LTV. The Mortgage Charter (2023) provides borrower protections for those facing payment difficulties.