Calculate your UK mortgage loan-to-value ratio
Loan-to-value compares the mortgage balance with the property value. It is expressed as a percentage and is commonly shortened to LTV. This calculator shows current and proposed LTV, combined LTV where other secured borrowing exists, and the equity remaining in the property.
LTV is an important mortgage-pricing and eligibility measure, but it is not an affordability calculation. A lender will also consider income, expenditure, credit history, loan purpose, property type and its accepted valuation.
How to calculate mortgage LTV
Divide the mortgage balance by the property value and multiply by 100. A £320,000 mortgage on a £500,000 property has a 64% LTV. The corresponding property equity before other secured debts is £180,000, or 36%.
For a purchase, the lender may base the calculation on an accepted valuation and the purchase price under its criteria. For an existing home, an online estimate may not match an automated or surveyor valuation used for remortgaging or additional borrowing.
First-charge LTV
First-charge LTV compares the main mortgage balance with the property value.
Combined LTV
Combined LTV adds first- and second-charge balances and drawn secured credit before dividing by property value.
Full credit-facility exposure
Where a secured revolving facility exists, a lender may also consider its full limit. Treatment depends on the lender and product.
Target LTV
The target section shows the mortgage balance, required capital repayment or property value associated with a chosen planning ratio.
How deposits, repayments and property values change LTV
For a purchase, a larger deposit normally produces a lower LTV. For an existing mortgage, capital repayments reduce the balance, while property-value movements can raise or lower the percentage. MoneyHelper explains that mortgage product availability and rates often vary by LTV band and that a larger deposit can provide access to different deals. Read its mortgage deposit and LTV guide.
Use the target calculation to test a lower LTV before a remortgage, then compare repayment and product costs rather than assuming a particular band guarantees a cheaper or available mortgage.
LTV for second-charge borrowing and remortgaging
When another loan is secured against the property, combined LTV gives a broader view than first-mortgage LTV alone. The FCA’s reporting guidance recognises that second and subsequent mortgages require the existing secured borrowing and property valuation to be considered appropriately. See the FCA residential lending FAQ.
Lower LTV does not establish that additional borrowing is affordable or suitable. Fees, early-repayment charges, total interest and the consequences of securing debt against the home also matter.
UK loan-to-value questions
What does 90% LTV mean?
It means the mortgage represents 90% of the property value, leaving 10% as deposit or equity before considering any additional secured debt.
Is a lower LTV better?
A lower LTV means more equity and may provide access to different mortgage products, but pricing and acceptance still depend on the lender and full application.
What is combined LTV?
Combined LTV adds the main mortgage and other borrowing secured against the property, then divides the total by the property value.
Can mortgage repayments reduce LTV?
Capital repayments reduce the mortgage balance and therefore lower LTV if the accepted property value remains unchanged.
Can a property-value fall increase LTV?
Yes. If the mortgage balance stays similar while the property value falls, LTV rises and the property could enter negative equity if secured debt exceeds its value.