Check Your Loan‑to‑Value (LTV) in Seconds
Free UK LTV calculator with a deposit slider and a quick affordability sense‑check. Learn what your LTV means for interest rates and how to improve it.
Calculate Your LTV
Enter your property value and either your deposit or loan amount. We'll work out your LTV and explain what it could mean for your deal.
Tip: Most buyers know their budget and deposit. Switch modes if you already have a loan figure.
Example: A £200,000 home with a £40,000 deposit means a £160,000 loan → 80% LTV.
Why LTV matters
Lower LTV usually unlocks lower interest rates. Many of the most competitive deals are at 60% LTV and below.
Most UK lenders expect at least a 5% deposit (95% LTV). Bigger deposits mean smaller loans and lower monthly payments.
At higher LTVs, lenders may charge higher rates or a Higher Lending Charge (sometimes called MIG) on certain products.
LTV by property type
First‑time buyers and movers commonly borrow between 60–90% LTV. Up to 95% is sometimes available, subject to lender criteria.
Lenders often cap LTV lower than residential. They’ll also look at rental income coverage as part of affordability.
Commercial mortgages typically require larger deposits. Terms vary widely by asset type and business strength.
Remortgaging? Your LTV is based on your current balance and a fresh property valuation.
How to lower your LTV
- Increase your deposit (savings, gifts, or sale proceeds).
- Negotiate the property price where possible.
- Consider improving your credit profile to access better‑priced deals.
- Review government schemes or lender incentives that fit your situation.
- Overpay your mortgage (on existing loans) to build equity faster.
Frequently asked questions
What is a good LTV in the UK?
Lower is usually better. As a rough guide, ≤60% is considered very strong, 60–75% is competitive, 80–90% is higher‑risk for lenders, and 95% is the upper end of standard deals.
How do I calculate LTV?
LTV = (loan ÷ property value) × 100. Example: £160,000 loan on a £200,000 property → 80% LTV.
Does LTV affect my interest rate?
Yes. Lenders typically reserve their lowest rates for lower LTV bands (e.g. ≤60%).
What is MIG or a Higher Lending Charge?
Some lenders may apply a charge on higher‑LTV borrowing to cover their risk. It protects the lender, not the borrower, and is not present on all products.
Is 100% LTV possible?
True 100% LTV is rare. Most borrowers need at least a 5% deposit unless a specific guarantor or niche product applies.
Quick glossary
Your ownership stake: property value minus what you owe.
A lender’s assessment of the property’s market value.
How much a lender thinks you can safely borrow based on income and expenses.
This tool gives general guidance only and isn’t financial advice. Mortgage eligibility depends on your circumstances, credit history, and lender criteria. Consider speaking to a qualified adviser.