LTV Calculator: Find your Loan to Value

LTV stands for ‘loan to value’ – and refers to the ratio of how much you’ve borrowed/intend to borrow under a mortgage vs the amount you’ve paid/intend to pay as a deposit when purchasing property. 

For example, if you had a mortgage of £200,000 on a property worth £250,000, your LTV would be 80%. 

Typically, a lower LTV score is seen as less risky in the eyes of lenders – meaning those with high deposits to put down tend to gain access to more favourable mortgage rates.

Feel free to use our simple mortgage calculator above to calculate your LTV and kickstart the next stage of your mortgage journey. Alternatively, if you’d like to speak to one of our experts in person, book in for a consultation or free mortgage advice session using the form above, or visit us in branch. 

In simple terms, LTV is calculated by dividing the amount borrowed by the property value. The resulting number ix expressed as a percentage – for example, 70% or 80%. 

For example, if you’re looking to buy a home valued at £200,000 and are able to put down a £20,000 deposit, you’ll be borrowing £180,000, and your LTV ratio will be 90%. If you’re looking to caculate your LTV, feel free to use our simple LTV calculator. It’ll crunch the numbers on your behalf. Alternatively, if you’d like to speak to one of our experts in person, book in for a consultation or free mortgage advice session using the form above, or visit us in branch.

Generally, an LTV of 80% or under is accepted by most lenders, and will allow buyers access to more favourable and inexpensive deals. However, for many, including first time buyers, saving the deposit necessary to reach this number can be impossible. Luckily, there are a number of mortgages and schemes available for those unable to save for a large deposit. They include 95% mortgages, shared equity mortgages, and the Help to Buy scheme – all of which will work to help buyers secure a mortgage with a higher LTV. 

If you’re looking to discover your LTV, feel free to use our simple online calculator above. Alternatively, if you’d like to speak to one of our experts in person, book in for a consultation or free mortgage advice session using the form above, or visit us in branch.

The vast majority of lenders will consider a regular mortgage application with an LTV of 80% or lower, meaning that 70% is generally thought to be relatively low, or just below average.  A mortgage secured with this LTV is unlikely to be subject to prohibitavley high interest rates – with lenders perciving a lower ratio as being lower risk. In fact, borrowers with an LTV of around 70% may be given access to a number of ‘better’ deals. 

With this being said, it’s by no means impossible to secure a mortgage with a high LTV. The right mortgage broker should be able to search the market for deals suited to your unique circumstances, sourcing lenders offering high LTV mortgages, and suggesting the most suitable product types and schemes.

A lower LTV can be the key to unlocking better deals and interest rates – meaning lower total costs over the lifetime of your mortgage. There are a few main elements determining your LTV ratio; property value, and deposit – both of which directly impact the amount borrowed. If you’re looking to lower your LTV, your options are simple:

• Put down a larger deposit. If you’re able to save for a longer period of time and put together a more significant deposit, your patience will be rewarded with a lower LTV. This isn’t always an option for those looking to get onto the property ladder quickly, but schemes such as Help to Buy and other shared equity options may offer a deposit boost. 
• Lower your property budget/choose a more affordable home. Selecting a home lower in price could allow your existing savings to serve as a larger portion of the purchase price.