Cashback Remortgages · Mortgage rates
How Loan-to-Value Bands Affect Your Rate
Lenders price mortgages in loan-to-value bands, so your rate can change sharply as you cross a threshold. Knowing your band helps you target cheaper deals.
How bands work
Rates usually improve as LTV falls through bands such as 90%, 85%, 80%, 75% and 60%. Being just inside a band — say 74.9% rather than 75.1% — can matter more than a small change in the loan.
The lender's valuation sets the LTV, not the price you agree.
Improving your band
A slightly larger deposit or a modest overpayment before remortgaging can move you into a cheaper band. Weigh the saving against using up cash you may need elsewhere.
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.