Calculate mortgage LTV, property equity and the effect of additional borrowing.
Illustration only. A lender may use its own valuation, lending criteria, affordability checks, fees and maximum LTV limits.
How to use the Loan to Value Calculator
Enter the property value, current mortgage or proposed loan and any additional borrowing. For a purchase, use the mortgage amount as the loan and enter 0 for additional borrowing. For a remortgage, use the estimated lender valuation and current balance.
How LTV is calculated
| Result | Calculation |
|---|---|
| Current LTV | Current mortgage ÷ property value × 100 |
| New mortgage balance | Current mortgage + additional borrowing |
| New LTV | New mortgage balance ÷ property value × 100 |
| Remaining equity | Property value − new mortgage balance |
What does loan to value mean?
Loan to value compares the mortgage with the property’s value. A £225,000 mortgage on a £300,000 property has a 75% LTV. The remaining 25% is the buyer’s deposit or the owner’s equity, before allowing for selling costs or other secured borrowing.
Why LTV matters
Lenders often group products into LTV bands. A lower LTV usually gives the lender more security and may provide access to a wider choice of mortgage rates, although income, credit history, affordability, property type and other criteria still apply.
Valuation changes and remortgaging
LTV can fall when the mortgage balance reduces or the property value rises. It can increase when prices fall or more money is borrowed. The lender’s valuation may differ from an estate-agent estimate, so use the figure the lender accepts when assessing a real application.
Deposit and borrowing guidance
MoneyHelper explains that mortgage lenders use the term loan to value and that buyers commonly need a deposit, with product availability and pricing often linked to LTV. Read its mortgage deposit guidance before comparing deals.
Related calculators
Estimate repayments with the United Kingdom Mortgage Calculator. Budget for the legal process using the Conveyancing Fees Calculator UK, or examine an investment mortgage with the Buy-to-Let Mortgage Calculator. Browse all tools on the United Kingdom Calculator homepage.
Frequently asked questions
How do I calculate mortgage LTV?
Divide the mortgage balance by the property value, then multiply by 100.
Is a lower LTV better?
A lower LTV generally means more equity and may unlock more mortgage choices, but approval and pricing depend on the lender’s full criteria.
Does a deposit reduce LTV?
Yes. A larger deposit reduces the mortgage needed relative to the purchase price, which lowers LTV.
Can additional borrowing increase LTV?
Yes. If the property value stays unchanged, adding borrowing increases the mortgage balance and therefore the LTV.
Which property value should I use?
Use the purchase price for an initial estimate or the lender’s accepted current valuation for a remortgage calculation.