Loan-To-Value
CALCULATOR 2026/27
Drummonds Finance Group
Whether you're buying your first home, moving up the ladder, investing in buy-to-let, or remortgaging, your loan-to-value (LTV) has a big say in the mortgage rate you'll be offered. The bigger your deposit or equity, the lower your LTV, and the more lenders and cheaper rates open up to you.
Use our free LTV calculator to work out your loan-to-value in seconds. Enter the property price and your deposit, or your home's value and your mortgage balance if you're remortgaging. You'll see your LTV, the rate band you fall into and exactly how much more deposit, or how much less borrowing, would move you into a cheaper band.
Not sure what LTV you can get? Speak to Drummonds Finance Group on 0330 1330034. As whole-of-market brokers, we'll show you which lenders will consider your case and at what rates.
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LTV Calculator – Work Out Your Loan to Value
Your loan to value (LTV) is one of the biggest factors in the mortgage rate you'll be offered. Use our free LTV calculator to see your loan to value in seconds, which rate band you fall into and how much more deposit or equity you'd need to reach a cheaper rate. It works whether you're buying a home, buying a buy to let or remortgaging your current property.
What is loan to value (LTV)?
Loan to value is the size of your mortgage shown as a percentage of the property's value. If you buy a £300,000 home with a £30,000 deposit, you borrow £270,000, so your LTV is 90%. The other side of LTV is your deposit or equity. A 90% LTV mortgage means you own 10% of the property outright. A 60% LTV mortgage means you own 40%.
How do you calculate loan to value?
LTV = mortgage amount ÷ property value × 100
Examples: - £250,000 purchase with a £25,000 deposit – £225,000 mortgage – 90% LTV
- £250,000 purchase with a £50,000 deposit – £200,000 mortgage – 80% LTV
- £400,000 home with a £200,000 mortgage balance – 50% LTV
When you're buying, lenders use the purchase price or the valuation, whichever is lower. When you're remortgaging, they use the current valuation of your home.
How does LTV affect my mortgage rate?
Lenders see a lower LTV as lower risk, so they reward it with better rates. Mortgage deals are priced in LTV bands, usually in 5% steps: 60%, 65%, 70%, 75%, 80%, 85%, 90% and 95%.
Dropping into a lower band can noticeably reduce your rate and monthly payments. The biggest jumps are often between 95% and 90%, 90% and 85%, and 85% and 75%. At 60% LTV or below, you'll usually have access to the lowest rates on the market.
That's why our calculator shows exactly how much extra deposit, or how much less borrowing, would move you into the next band.
What LTV do I need for a mortgage?
It depends on the type of mortgage and your circumstances:
- Residential mortgages – usually up to 95% LTV, with a small number of specialist schemes going higher
- Buy-to-let mortgages – usually up to 75% LTV, with some lenders going to 80% or 85%
- Interest-only mortgages – often capped at 50% to 75% LTV
- New build flats – some lenders cap LTV lower than for houses
- Adverse credit – maximum LTV is often lower, depending on how recent and serious the credit issues are
Lender criteria varies widely, which is where a whole-of-market broker can help.
How can I lower my LTV?
- Save a bigger deposit, even a few thousand pounds can move you into a lower band
- Use a gifted deposit from a family member, where the lender allows it
- Look at a slightly cheaper property
- If remortgaging, borrow less or pay down part of your balance before switching
- If your home has gone up in value, a new valuation could lower your LTV automatically
Does my LTV go down when I remortgage?
Yes. Your LTV falls as you pay off your mortgage and as your home rises in value. That means you could qualify for a better rate band when your current deal ends, even if you haven't made overpayments.
It can also work the other way. If house prices in your area have fallen, or you want to borrow more, your LTV could go up. It's worth checking your LTV around six months before your deal ends so you can plan ahead.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.