Loan to Value (LTV) Calculator

Loan to value (LTV) is the single biggest factor lenders use to price mortgage risk. The lower your LTV, the less a lender stands to lose if you default — so they charge you less for the money. In the UK, most lenders price in distinct bands: 95%, 90%, 85%, 80%, 75%, and 60%. Crossing a band threshold can reduce your rate meaningfully, sometimes by 0.3–0.5 percentage points, saving thousands over a fixed term.

The most competitive rates are almost always reserved for borrowers at 75% LTV or below. Dropping from 80% to 75% — which might require saving an extra few thousand pounds — can be one of the most effective ways to reduce your borrowing cost. Below 60% LTV, lenders compete most aggressively for your business, and you will typically find the very best rates on the market.

Your LTV also determines which lenders will consider your application at all. Many specialist and high-street lenders will not lend above 90% LTV, and first-time buyer products that go to 95% carry higher rates and tighter criteria. If you are close to a band boundary, a broker can help you identify whether a small additional deposit would unlock a better deal.