LTV Calculator
Amortisation FormulaWork out your loan-to-value ratio, the band it falls in, and what it takes to reach the next one.
Borrowing £240,000 against a £300,000 property with a £60,000 deposit is 80% loan to value, in the up to 80% band. Another £15,000 of deposit would reach the up to 75% band.
Breakdown
- Loan amount
- £240,000
- Deposit
- £60,000
- Equity
- 20%
- Lending band
- Up to 80%
- To reach Up to 75%
- £15,000 more
Show your working
What each band needs on this property
| Band | Largest loan | Deposit needed |
|---|---|---|
| Up to 60% | £180,000 | £120,000 |
| Up to 75% | £225,000 | £75,000 |
| Up to 80% | £240,000 | £60,000 |
| Up to 85% | £255,000 | £45,000 |
| Up to 90% | £270,000 | £30,000 |
| Up to 95% | £285,000 | £15,000 |
Lenders price by band, so the gain comes from crossing a threshold rather than from every extra pound.
Where this sits
Bands are the thresholds lenders commonly publish against; individual lenders vary.
Assumptions
- LTV is measured against the lender’s valuation, which can differ from the asking price or what you paid.
- Product fees added to the loan count toward the balance and can push you into a higher band.
- The bands shown are typical for UK residential lending; buy-to-let is usually capped nearer 75–85%.
- Crossing a threshold changes which products you qualify for, not the rate itself — pricing varies by lender.
Loan-to-value facts
- How is loan to value calculated?
- Divide the mortgage by the property value and multiply by 100. A £240,000 mortgage on a £300,000 property is 80% LTV.
- Why does LTV change the rate I am offered?
- Lenders price in bands, not on a sliding scale. Slipping from 80.1% to 80.0% can move you to a different set of products, so a few hundred pounds of deposit occasionally matters more than a few thousand.
- What are the usual UK bands?
- 95%, 90%, 85%, 80%, 75% and 60%. Below 60% the pricing benefit largely stops, so there is little rate advantage in a very large deposit.
- How much more deposit reaches the next band?
- Multiply the property value by the target LTV to get the biggest loan that band allows, then subtract it from the value. On a £300,000 property, 75% LTV needs a £75,000 deposit.
Understanding loan to value
What LTV means
Loan to value is the size of your mortgage measured against what the property is worth. Borrow £240,000 against a £300,000 home and your LTV is 80% — the remaining 20% is your equity.
It is the single number lenders use to summarise how much of the risk they are carrying. If they ever had to repossess and sell, a lower LTV gives more room for the sale to cover the debt.
Why the bands matter more than the number
Rates are not priced on a smooth curve. Lenders publish products for bands — up to 60%, up to 75%, up to 80%, and so on — and you are charged at whichever band you fall into.
That is why 80.4% and 80.0% can be priced quite differently while 79% and 76% are usually identical. Landing just the wrong side of a threshold is the expensive mistake.
Ways to lower it
Only two levers exist: borrow less or be valued higher. A larger deposit, a gifted deposit, or overpaying an existing mortgage all reduce the loan. A higher valuation raises the denominator.
On a remortgage, house price growth often does the work for you — the same balance against a higher valuation is a lower LTV, which is why it is worth rechecking before a deal ends.
Common mistakes and limits
Use the lender's valuation, not the asking price or what you paid. Lenders lend against their own surveyor's figure, and on a new build that can come in lower than the price on the brochure.
Fees added to the loan count toward the balance, so a product fee rolled up can push you into the next band. Buy-to-let is usually capped nearer 75–85%, so the bands here are for residential lending.
Related calculations
Once you know the band, the mortgage calculator turns a rate into a monthly payment, and the amortization schedule shows how each payment splits between interest and capital. Buying your first home? The first-time buyer guide covers deposit tiers and the schemes available.
Worked example
A £300,000 property with a £60,000 deposit means borrowing £240,000. LTV = (240,000 ÷ 300,000) × 100 = 80%, which sits in the up to 80% band.
To reach the next band down, 75%, the largest loan allowed is 300,000 × 0.75 = £225,000. That needs a deposit of £75,000 — £15,000 more than they have.
Evidence & Methodology
How This Page Is Grounded
Method
Divides the loan by the lender valuation to give loan-to-value, then compares it against the bands UK lenders commonly publish products against and derives the deposit each band would require on the same property.
Important limitation: Bands are typical rather than universal; individual lenders set their own thresholds and buy-to-let is usually capped lower. Product fees added to the loan are not modelled unless included in the amount entered.
Primary Sources
- Mortgage repayment calculator MoneyHelper
- Buying a home: preparing to buy GOV.UK
Quality Checks
Ratio, band selection at exact thresholds and the deposit-to-next-band figure checked against worked examples.
See how sources are selected and corrections are handled in our Editorial & Calculation Methodology, and which automated checks this page has to pass in How We Test.
</> Embed this calculator
Free to embed on any website — no sign-up needed. Paste this snippet where you want the calculator to appear.
<div class="yootil-widget" data-tool="ltv-calculator" data-currency="GBP"></div>
<script src="https://yootils.com/widgets/v7/widgets.js" integrity="sha384-+/J+UJUQkd8qBlJ2y9qW3wNk89iZUobwuVdo6dqpCvoanps684ZTa7cGCJ5L1AQc" crossorigin="anonymous" async></script>