LTV Calculator UK 2026
Calculate your Loan-to-Value ratio and see potential remortgage savings
Understanding Loan-to-Value
Loan-to-Value (LTV) is one of the most important factors mortgage lenders consider when deciding how much to lend you and at what rate. It represents the percentage of your property value that is mortgaged.
Why LTV Matters: The more equity you have in your property, the less risk you pose to lenders. This translates directly into better mortgage rates. Properties with LTV above 75% typically pay higher interest rates, while those below 60% qualify for the most competitive deals.
BTL Specific Considerations: Buy-to-let mortgages typically require a minimum 25% deposit (75% LTV). However, the most competitive BTL rates are available at 65% LTV or lower. Some specialist lenders offer products up to 85% LTV, but these come with significantly higher interest rates.
Improving Your LTV: The simplest way to improve your LTV is by paying down your mortgage. Property value increases through appreciation or improvements also help. Every 5% reduction in LTV can unlock better rates and save hundreds of pounds annually.
Frequently Asked Questions
What is LTV in mortgage terms?
LTV stands for Loan-to-Value. It's the ratio of your mortgage amount to the property value, expressed as a percentage. A £200,000 mortgage on a £250,000 property = 80% LTV.
Why does LTV matter?
LTV determines your mortgage rate and requirements. Lower LTV (more equity) typically means better rates. Most BTL mortgages require at least 25% deposit (75% LTV). Below 60% LTV gets the best deals.
What LTV do BTL mortgages require?
Buy-to-let mortgages typically require a minimum 25% deposit (75% LTV). Some specialist lenders go up to 85% LTV, but rates are higher. Standard BTL deals are best at 65-75% LTV.
How can I improve my LTV?
Pay down your mortgage, property value increases through appreciation, or make improvements to increase value. Every 5% reduction in LTV can significantly improve your mortgage rate.
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