United Kingdom
United Kingdom LTV calculator
Your loan-to-value ratio — the number lenders lean on most to price your mortgage and decide what you qualify for.
Property & deposit
Loan-to-value
85.0%
Borrowing £340,000 against a £400,000 property.
- Your equity from day one
- 15.0%
- Loan amount
- £340,000
An estimate for planning — not financial advice. LTV is simply the loan divided by the property value; lender rules and thresholds vary.
In the UK, loan-to-value (LTV) doesn't trigger mandatory insurance the way it does in the US or Canada — instead it sorts you into a rate band. Lenders price mortgages in LTV tiers (95%, 90%, 85%, 75%, 60%…), and each step down to a lower LTV typically unlocks a cheaper rate. This calculator shows your band.
How this calculator works
LTV = loan ÷ property value. A £270,000 loan on a £300,000 home is 90% LTV. A bigger deposit lowers it.
There's no compulsory mortgage insurance in the UK, but rates are tiered by LTV: the best deals sit at 60% and below, and each band up (75%, 85%, 90%, 95%) costs more. Crossing a threshold — say 91% down to 89% — can move you into a cheaper band.
So a slightly larger deposit that nudges you under the next LTV threshold can save more over a fix than the extra deposit itself.
A worked example
On a £300,000 home, the deposit sets your LTV band (which prices the rate):
- 5% deposit
- £285,000 loan · 95% LTV (highest rates)
- 10% deposit
- £270,000 loan · 90% LTV
- 25% deposit
- £225,000 loan · 75% LTV
- 40% deposit
- £180,000 loan · 60% LTV (best rates)
There's no CMHC- or PMI-style insurance in the UK — LTV shows up purely as the rate band you qualify for.
Who it's for
- You want to know your LTV band.
- You're deciding whether a bigger deposit is worth it.
- You're comparing UK deals before you apply.
Frequently asked questions
What is a good LTV in the UK?
60% or below unlocks the cheapest rates. Each band up — 75%, 85%, 90%, 95% — carries a higher rate, so a lower LTV saves money over the deal.
Does the UK have PMI or CMHC insurance?
No — there's no mandatory mortgage insurance for high-LTV borrowers. Instead, lenders simply charge higher rates at higher LTVs.
How does LTV affect my mortgage rate?
Rates are banded by LTV. Dropping from, say, 90% to 85% can noticeably cut the rate, which is why deposit size matters at the thresholds.
Is a bigger deposit always worth it?
It helps most when it crosses an LTV threshold into a cheaper band. Between thresholds the rate benefit is smaller, so aim just under a band boundary.