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Loan-to-Value (LTV) Calculator

See your LTV, the deposit you would need for the next band down, and what those bands usually mean.

This is an estimate, not financial advice. Lending decisions depend on a valuation, your credit history, income, existing commitments and each lender's own criteria, none of which this calculator can see. Speak to a qualified mortgage adviser or lender before making any decision. See our Disclaimer.
—Loan to value
—Loan amount
—Deposit
—Equity share

What you would need for the next band down

Target LTVDeposit neededExtra neededLoan amount

Optional: estimated monthly repayment

—Monthly payment
—Total repaid
—Total interest

A rate is a worked illustration only. It excludes fees, insurance, taxes, service charges and any product changes over the term.

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What the loan-to-Value (LTV) Calculator does

Loan-to-value is the size of a loan expressed as a percentage of the property's value. Borrow £272,000 against a £320,000 property and the LTV is 85%. It is the single number lenders look at first, because it measures their exposure: the lower the LTV, the more the property would have to fall in value before the lender is at risk of not recovering the debt.

The practical consequence is that mortgage pricing is organised into LTV bands, and the difference between adjacent bands can be substantial. Being at 85.4% rather than 85.0% can push you into a worse band for the sake of a few hundred pounds of deposit — which is why the table on this page shows exactly what deposit each band would require and how much more you would need to find. It is often the highest-return few hundred pounds available to a buyer.

The bands themselves are a general pattern rather than a fixed rule. Broadly, pricing improves in steps at 90%, 85%, 80%, 75% and 60%, with 60% commonly the point beyond which further deposit buys little. Where exactly those steps fall, and how large they are, varies by country, by lender, by product and over time.

The repayment section is a straightforward amortisation illustration using the standard annuity formula. It shows what a given loan, rate and term would cost per month, what you would repay in total, and how much of that is interest. It deliberately excludes fees, insurance, taxes, service charges and any rate change at the end of a fixed period — all of which are real costs that a lender's own illustration will include and this one cannot.

How to use it

  1. Enter the property price or valuation, and your deposit — either as an amount or by moving the percentage slider.
  2. Read the LTV and the band note beneath it.
  3. Check the table: if you are just above a band boundary, it shows exactly how much more deposit would take you below it.
  4. Optionally enter a rate and term for an illustration of monthly cost — remembering that it excludes all fees.

A worked example

A £320,000 property with a £48,000 deposit:

Deposit    £48,000  (15.0%)
Loan       £272,000
LTV        85.0%
Equity     15.0%

The band table then shows what the next step down would take:

Target LTVDeposit neededExtra needed
85%£48,000already met
80%£64,000£16,000
75%£80,000£32,000

At an illustrative 4.6% over 25 years, the £272,000 loan costs roughly £1,527 a month. Finding another £16,000 to reach 80% reduces the loan to £256,000 — about £1,437 a month at the same rate, and in practice usually at a lower rate too, since 80% is a better-priced band. That is the compounding effect of a band change, and why the question is worth asking before you make an offer.

Frequently asked questions

What is a good loan-to-value ratio?

Lower is cheaper, but there are diminishing returns. Pricing generally improves in steps at 90%, 85%, 80%, 75% and 60%. Below about 60% the gains flatten, so a very large deposit may be better used elsewhere — on fees, on an emergency fund, or on the property itself.

Does LTV change over time?

Yes, in both directions. It falls as you repay capital and as the property gains value, which is why remortgaging after a few years often lands you in a better band. It rises if the property falls in value — and if it exceeds 100% you are in negative equity, which usually prevents remortgaging until the position recovers.

Is the monthly repayment figure what I would actually pay?

No. It is a mathematical illustration of capital and interest at a constant rate. It excludes arrangement fees, valuation and legal costs, buildings insurance, any mortgage insurance premium, property taxes, ground rent and service charges, and it assumes the rate never changes — which it will at the end of any fixed period. Use a lender's own illustration for real figures.

Does this calculator work outside the UK?

The arithmetic is universal — LTV, deposit and amortisation work identically everywhere, and you can change the currency symbol. The lending bands described are a general pattern common to many markets, but the specific thresholds, the availability of high-LTV products and any mortgage insurance requirement differ by country. Check local guidance.

Last reviewed and updated: 6 September 2026. Figures and assumptions on this page are checked whenever the underlying guidance changes.