Calculate your Loan-to-Value ratio — see which mortgage deals you qualify for
| LTV | Deposit % | Rate Indication | Availability |
|---|---|---|---|
| ≤60% | 40%+ | Best rates available | All mainstream lenders |
| 65% | 35% | Excellent | All mainstream lenders |
| 70% | 30% | Very good | All mainstream lenders |
| 75% | 25% | Good | All mainstream lenders |
| 80% | 20% | Average | Most lenders |
| 85% | 15% | Higher rate | Most lenders |
| 90% | 10% | Higher rate | Many lenders |
| 95% | 5% | Highest rate | Selected lenders |
LTV (Loan-to-Value) is the percentage of the property value you're borrowing. A 90% LTV mortgage means you're borrowing 90% of the property value and contributing 10% as a deposit. Lenders use LTV as a key risk indicator — if you default and the property has to be sold, a lower LTV provides more buffer to cover their losses. The lower your LTV, the less risk for the lender, and the better the interest rate you'll be offered.
The best mortgage rates in the UK are typically available at 60% LTV or below. That means putting down at least 40% of the purchase price. Rate tiers typically step up at 65%, 70%, 75%, 80%, 85%, 90%, and 95% LTV. The rate difference between 60% LTV and 90% LTV can be 1–1.5% — on a £200,000 mortgage, this equates to £2,000–£3,000 per year in additional interest. Even improving from 85% to 80% LTV can save hundreds per year.
LTV = (Mortgage amount ÷ Property value) × 100. For a purchase: property worth £250,000, deposit £37,500 = mortgage of £212,500, LTV = (212,500 ÷ 250,000) × 100 = 85% LTV. For remortgaging: outstanding balance £120,000, property now worth £280,000, LTV = (120,000 ÷ 280,000) × 100 = 42.9% — this would qualify for the best 60% LTV deals. Getting an accurate current valuation is key for remortgaging LTV calculations.
Most mainstream lenders go up to 95% LTV (5% deposit minimum). The UK Mortgage Guarantee Scheme helps lenders offer 95% mortgages. Skipton Building Society has offered a 100% mortgage (no deposit) for renters with a track record of paying rent. For buy-to-let mortgages, the maximum LTV is typically 75–80%. For interest-only mortgages, many lenders cap at 75% LTV. New-build properties sometimes have lower maximum LTVs (typically 85%).
Remortgage LTV is calculated on your current outstanding balance vs current property value — not the original purchase details. If you bought at 90% LTV three years ago and have both paid down capital and seen house price growth, your LTV may now be 70–75%, unlocking much better rates. When your fixed-rate term ends, calculate your current LTV before accepting your lender's standard variable rate (SVR). Switching to a new deal or lender based on your improved LTV can save thousands.