Calculate your loan to value (LTV) ratio instantly. Find which mortgage rates you qualify for and how much equity you need to move to a better LTV band.
Loan to Value (LTV) is the ratio of your mortgage balance to the property's value, expressed as a percentage. For example, a £210,000 mortgage on a £300,000 property is 70% LTV. LTV determines the mortgage rates available — lower LTV means less risk for the lender, so they offer better rates. Key LTV thresholds in the UK market are 60%, 75%, 80%, 85%, 90%, and 95%.
60% LTV typically gets the best mortgage rates as it represents very low lender risk. 75% LTV is the next key threshold where rates improve noticeably. 80-85% LTV rates are slightly higher. 90-95% LTV mortgages are available but carry significantly higher rates and fewer lender choices. For first-time buyers, 90-95% LTV mortgages are common with schemes like Mortgage Guarantee.
Mortgage rates are tiered by LTV — every 5% reduction in LTV can save 0.1-0.3% in interest rate. For example, moving from 80% to 75% LTV might reduce your rate from 4.5% to 4.2%, saving approximately £90/month on a £200,000 mortgage. It is often worth making a small overpayment to cross an LTV threshold before remortgaging.
LTV for a remortgage is calculated using: (Current Mortgage Balance ÷ Current Property Value) × 100. Your current balance comes from your latest mortgage statement or the lender's online portal. The property value can be estimated using recent local sold prices (Zoopla, Rightmove, or Land Registry data) or a formal RICS valuation ordered by your remortgage lender.
Yes — you can remortgage to borrow more (up to your lender's maximum LTV, typically 85-90%), which increases your LTV. This is called a further advance or equity release. However, lenders assess affordability on the higher amount, and a higher LTV typically means a higher interest rate. Always compare the benefit of releasing equity against the higher rate you will pay on the total mortgage balance.