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Loan to Value calculator

LTV is the percentage of the property's value that you're borrowing. It's one of the biggest drivers of the interest rate a lender will offer you.

Tip: for a purchase, your loan amount is the property price minus your deposit. For a remortgage, use your outstanding mortgage balance.

Loan to Value

80.0%

Good — wide product choice

Your equity / deposit

£60,000

Loan amount

£240,000

Lower LTV typically unlocks better rates. The biggest rate jumps tend to happen at 60%, 75%, 80%, 85% and 90% LTV thresholds.

Why LTV matters

Lenders price risk in tiers. The lower your LTV, the lower the rate you're typically offered — because the lender has more of a buffer if property values fall. The most common rate-price thresholds are 60%, 75%, 80%, 85%, 90% and 95% LTV.

How to lower your LTV

  • Increase your deposit, even by a few thousand pounds, to drop into a better LTV band.
  • On a remortgage, an updated valuation can push you into a lower LTV if local prices have risen.
  • Overpay where your product allows it to reduce your balance before remortgaging.

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