Overview
This loan-to-value (LTV) calculator shows the percentage of a property's value that your mortgage covers — a key number lenders use to decide which deals and rates you can access. Enter the property value and your mortgage balance (or the amount you want to borrow) to see your LTV, how much equity you hold, and exactly what it would take to drop into a lower, better-rate band — either by reducing your balance or as your property value changes. It works whether you're buying, remortgaging, or simply checking where you stand today.
How it's calculated
Loan-to-value compares what you owe with what the property is worth:
- LTV is your mortgage balance divided by the property value.
- Equity is the part you own outright — the value minus the mortgage.
- A lower LTV means less risk for the lender, which usually unlocks lower interest rates.
Lenders price mortgages in bands (for example 90%, 75%, 60%). Crossing into a lower band can meaningfully cut your rate, so we show how much to reduce your balance — or how much your value would need to rise — to reach each one.
LTV = (mortgage balance ÷ property value) × 100
Equity = property value − mortgage balance. The deposit you put down on a purchase is simply your starting equity.
Worked example
Take a property worth £300,000 with a £240,000 mortgage:
| Property value | £300,000 | |
|---|---|---|
| Mortgage balance | £240,000 | |
| LTV | 80% | |
| Equity | £60,000 | 20% |
| To reach 75% LTV | − £15,000 | or value rises to £320,000 |
At 80% LTV you'd reach the keener 75% band by reducing the balance to £225,000 (£15,000 less) or if the property value rose to £320,000. Even a small move across a band can improve the rates available to you.
Current rates & key facts
Why LTV bands matter
| LTV band | What it usually means |
|---|---|
| 60% or lower | Access to lenders’ lowest rates |
| 75% | Competitive rates — a common sweet spot |
| 85–90% | Wider availability but higher rates |
| 95% | Smallest deposits; highest rates and fewer deals |
Bands and pricing vary by lender. Crossing a band can improve the rates on offer but does not guarantee a specific rate or mortgage approval.
Last updated 29 June 2026 · Source: MoneyHelper — Loan to value explained