Cashback Remortgages · Mortgage calculations
Loan-to-Value (LTV) Calculator
Loan-to-value is the size of your mortgage compared with the property's value, shown as a percentage. Lenders price products in LTV bands, so knowing yours helps you understand which deals you may be able to compare. This is an illustration, not an eligibility decision.
Your loan-to-value illustration
- Loan-to-value
- 71.43%
- Deposit / equity
- £100,000.00 (28.57%)
Loan-to-value is the loan divided by the property value. Lenders price by LTV band; a lower LTV can unlock cheaper products, but the lender uses its own valuation, which may differ from the price you agree. This is not mortgage advice, an affordability decision or an offer.
What loan-to-value means
LTV is the loan divided by the property value. A £250,000 loan on a £350,000 property is around 71% LTV, leaving £100,000 (29%) as deposit or equity. Cheaper products usually appear as LTV falls through bands such as 90%, 85%, 80%, 75% and 60%.
The lender uses its own valuation, which can be lower than the price you agree. If it is, your effective LTV rises and the products available may change, so do not treat the asking price as the value used for lending.
Why the band matters more than the exact figure
Being just inside a band — for example at 74.9% rather than 75.1% — can matter more than a small change in the loan. A slightly larger deposit or a small overpayment before remortgaging can sometimes move you into a cheaper band.
LTV is only one input. Affordability, credit history, income type and the property all affect the decision. A good LTV does not guarantee approval, and a high LTV does not automatically mean refusal.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.