What it means
Loan to value is how much of the home's value is covered by the mortgage, shown as a percentage. The rest is your equity on paper.
Buying
Loan to value calculator
How much of the home is covered by the mortgage, and how much is yours.
Why it matters
Lenders use this to price risk. A lower percentage often means cheaper rates and more choice of deals.
When to use it
Use it when sizing a deposit, checking a remortgage, or seeing whether a further loan still sits in a sensible band.
How to read the result
Lower is usually better for rates. Deals often jump at bands such as 95%, 90%, 85% and 75%. Equity is value minus what you still owe.
Your figures
Methodology
Rules checked against published sources as of 2025-04-01.
- Loan to value is mortgage balance divided by property value.
- Equity is property value minus mortgage balance.
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FAQs
Does a lower LTV mean a better rate?
Often yes, but not always. Lenders price by LTV bands and other criteria. This tool only calculates the ratio.