Calculate your LTV ratio and see which mortgage rate tier you qualify for
✓ All LTV tiers✓ Rate tier guide✓ Monthly payment estimate✓ Free — no signup
2026 Rates Updated March
Enter Your Details
£300,000
£50,000£2,000,000
£240,000
£0£1,900,000
Deposit: £60,000 (20.0%)
£60,000
£0£1,000,000
Mortgage: £240,000
Your LTV Results
Enter your details and click Calculate LTV to see your results.
⚠️ LTV affects your rate significantly — Moving from 90% to 85% LTV (an extra 5% deposit) can reduce your rate by 0.5% or more, saving thousands over the mortgage term. Always aim for the next LTV tier if you can.
⚠️ Revaluation can change your LTV — If your property value changes after purchase, your LTV changes too. Overpayments also reduce LTV. Remortgaging at a lower LTV can unlock better rates.
⚠️ Estimated rates are illustrative — Rate estimates are approximate market averages for 2025. Your actual rate depends on credit score, income, lender, and product type. Always get a personalised quote.
LTV Tiers & Rate Ranges
How your LTV ratio maps to mortgage rate tiers and lender availability.
LTV
Deposit Required
Rate Tier
Est. Rate Range
Description
≤60%
40%+
Best
3.5–4.5%
Lowest rates, largest lender choice
61–75%
25–39%
Competitive
3.8–4.8%
Strong product range
76–80%
20–24%
Good
4.0–5.0%
Many products available
81–85%
15–19%
Standard
4.3–5.3%
Rate premium applies
86–90%
10–14%
Higher
4.8–5.8%
Fewer lenders, higher rates
91–95%
5–9%
High
5.5–7.0%
Limited availability
Worked Examples
80% LTV — Standard Buy
80%
Property: £300,000
Deposit: £60,000 (20%)
Mortgage: £240,000
Rate tier: Good (4.0–5.0%)
Est. monthly: ~£1,320 at 4.5%, 25yr
90% LTV — Lower Deposit
90%
Property: £450,000
Deposit: £45,000 (10%)
Mortgage: £405,000
Rate tier: Higher (4.8–5.8%)
Extra deposit needed to reach 85% LTV: ~£22,500
60% LTV — Large Deposit
60%
Property: £250,000
Deposit: £100,000 (40%)
Mortgage: £150,000
Rate tier: Best (3.5–4.5%)
Est. monthly: ~£789 at 4.0%, 25yr
How Loan to Value (LTV) Works in 2026
Loan to Value (LTV) is the ratio of your mortgage to the property value, expressed as a percentage. If you buy a £300,000 property with a £30,000 deposit, your mortgage is £270,000 and your LTV is 90%. LTV is the single most important factor in determining the mortgage rate you are offered.
Lenders price mortgages in LTV tiers — typically 95%, 90%, 85%, 80%, 75%, and 60%. Crossing a tier boundary by increasing your deposit even slightly can save thousands in interest over the mortgage term.
LTV Tiers & Rate Impact (2026)
LTV Tier
Deposit Required (£300k home)
Typical 2-Yr Fixed Rate
Monthly Payment (£270k, 25yr)
95%
£15,000 (5%)
5.5–6.2%
£1,540–£1,620
90%
£30,000 (10%)
4.8–5.4%
£1,459–£1,540
85%
£45,000 (15%)
4.4–5.0%
£1,336–£1,388
80%
£60,000 (20%)
4.1–4.6%
£1,230–£1,268
75%
£75,000 (25%)
3.8–4.3%
£1,127–£1,164
60%
£120,000 (40%)
3.6–4.0%
£1,063–£1,095
Rates are indicative averages for March 2026. Actual rates depend on credit score, income, and lender. Monthly payments assume capital repayment mortgage.
What Changed in 2026
With the Bank of England base rate at 4.5% in early 2026, mortgage rates remain elevated. The gap between LTV tiers has widened — the difference between 95% and 75% LTV rates is now typically 1.5–2.0 percentage points, compared to 0.5–1.0% during the low-rate era of 2021.
This means the financial incentive to save a larger deposit is greater than ever. On a £300,000 purchase, moving from 90% to 75% LTV saves approximately £200–£350 per month and £60,000–£100,000 over a 25-year term.
The Mortgage Guarantee Scheme continues to support 95% LTV lending. However, lenders remain cautious and may require stronger income evidence and higher credit scores for high-LTV applications.
Understand Your Full Mortgage Picture
LTV directly affects your mortgage rate, deposit requirement, and borrowing power. Use these tools together:
Deposit Calculator — see exactly how much deposit you need to hit a specific LTV tier, and how long it takes to save.
Affordability Calculator — check how much you can borrow at your current LTV — a larger deposit means a smaller loan but potentially a larger property.
Mortgage Calculator — compare monthly repayments at different LTV tiers to see the real cost of a smaller deposit.
Stamp Duty Calculator — SDLT is an upfront cost that competes with your deposit. Calculate it to budget accurately.
Property Value Estimator — check the current value of a property to calculate your LTV accurately before applying for a mortgage.
✅ LTV tiers and rates verified against major UK lender data, March 2026. This calculator is for guidance only. Rates change daily — always obtain personalised quotes from lenders or a mortgage broker.
Common Mistakes to Avoid with LTV Ratios
Assuming the asking price equals the valuation. Lenders base LTV on their own surveyor’s valuation, not the purchase price. If you agree to pay £300,000 but the lender values the property at £285,000, your LTV is calculated on the lower figure — meaning you need a bigger deposit or must renegotiate the price.
Ignoring the LTV tier boundaries. Mortgage rates drop at key thresholds: 95%, 90%, 85%, 80%, 75% and 60% LTV. Being at 91% LTV instead of 90% can cost you 0.3–0.5% extra on your interest rate. Even a small top-up to your deposit can push you into a cheaper tier.
Forgetting that upfront costs reduce your deposit. Stamp duty, solicitor fees and survey costs come out of your savings. A buyer with £60,000 saved for a £300,000 property might assume 80% LTV, but after £7,500 in fees the real deposit is £52,500, pushing LTV to 82.5% and a worse rate band.
Not recalculating LTV at remortgage time. Property values change. If your home has risen in value since purchase, your LTV may now be lower than you think, qualifying you for a better rate. Always get an up-to-date valuation before accepting a product transfer from your existing lender.
Overlooking overpayment potential. Most fixed-rate mortgages allow 10% overpayment per year without penalty. Strategic overpayments in the months before remortgaging can tip you into a lower LTV tier and save thousands over the next deal period.
5 Steps to Improve Your LTV Ratio
Check your current LTV. Divide your outstanding mortgage balance by your property’s current market value and multiply by 100. Use our calculator above or request a valuation estimate from your lender or an online tool.
Identify the next tier down. Find the nearest LTV threshold below your current ratio (e.g. if you are at 83%, target 80%). Calculate the exact overpayment or deposit top-up needed to cross that boundary.
Make strategic overpayments. If your mortgage allows penalty-free overpayments (most do, up to 10% per year), direct spare cash toward reducing the balance. Even £200/month extra on a £250,000 mortgage reduces the balance by £2,400/year.
Time your remortgage around value growth. If local property prices are rising, waiting a few months to remortgage could mean a higher valuation and a lower LTV. Monitor sold prices in your area via the Land Registry.
Compare deals at your new LTV. Once you reach a lower tier, use a mortgage broker or comparison site to shop across the whole market. The rate difference between tiers can be significant — even 0.2% less on a £250,000 mortgage saves over £6,000 across a 5-year fix.
Typical Mortgage Rates by LTV Band (2026)
Indicative 5-year fixed rates from major UK lenders as of early 2026. Rates change daily — always obtain personalised quotes.
LTV Band
Typical 5-Year Fixed Rate
Monthly Payment (£250k mortgage)
60% LTV or below
3.89%
£1,306
75% LTV
4.09%
£1,332
80% LTV
4.29%
£1,358
85% LTV
4.54%
£1,391
90% LTV
4.89%
£1,438
95% LTV
5.49%
£1,520
Monthly payments based on a 25-year repayment mortgage of £250,000. Rates are indicative averages and will vary by lender, product type and applicant circumstances.
Did You Know?
Did You Know? The difference between a 95% LTV and a 60% LTV mortgage on £250,000 can be over 1.5 percentage points in interest rate. Over a 25-year term, that translates to more than £55,000 in extra interest payments.
Did You Know? UK house prices have risen by an average of around 4% per year over the past 25 years. On a £300,000 property, even one year of typical growth adds £12,000 to your equity, automatically lowering your LTV by roughly 3–4 percentage points.
Did You Know? Around 40% of UK mortgage holders are on their lender’s standard variable rate (SVR), which averages 7–8% in 2026. Simply remortgaging to a fixed deal at your current LTV tier could cut monthly payments by £200–£400 immediately.
Pro Tips for Getting the Best LTV Deal
Mortgage brokers advise: set your remortgage reminder for 3–4 months before your current deal ends. Most lenders allow you to lock in a rate up to 6 months ahead, so starting early lets you secure a good rate without paying an early repayment charge.
Property valuers note: minor improvements like fresh decoration, a tidy garden and a new front door can nudge a surveyor’s valuation up by 1–3%. On a £300,000 property, a £3,000–£9,000 uplift could tip you into a lower LTV tier.
Financial planners suggest: if you are close to an LTV boundary (say 81% trying to reach 80%), consider using savings to make a lump-sum overpayment before remortgaging. The interest saved over a 5-year fix often far exceeds what those savings would earn in a bank account.
Lender insiders reveal: some banks offer “free legals and free valuation” on remortgage products at 75% LTV and below. This can save £1,000–£2,000 in fees on top of the rate saving, making the lower LTV tier even more valuable.
Potential Savings
Drop from 90% to 85% LTV
On a £250,000 mortgage, moving from 90% to 85% LTV (an extra £12,500 deposit on a £250k purchase) typically reduces your rate by around 0.35%. Over a 5-year fixed term, that saves approximately £5,200 in interest payments.
Overpay £200/mo to Hit 75% LTV
If you are at 79% LTV on a £250,000 mortgage, overpaying £200/month for two years reduces your balance by £4,800. Crossing the 75% threshold at remortgage unlocks rates around 0.2% lower, saving roughly £7,500 over the next 25 years.
Switch Off the SVR
A borrower on a 7.5% SVR with £200,000 outstanding at 80% LTV could remortgage to a 4.29% 5-year fix. That cuts monthly payments from £1,474 to £1,087 — a saving of £387 per month or over £23,000 across the 5-year deal.
Loan to Value FAQs
Common questions about LTV ratios, mortgage rate tiers, and how your deposit size affects borrowing costs.
Loan to value (LTV) is the ratio of your mortgage amount compared to the value of the property, expressed as a percentage. For example, if you borrow £240,000 on a £300,000 property, your LTV is 80%. A lower LTV means a larger deposit relative to the property value, which lenders view as lower risk and reward with better mortgage rates.
LTV directly influences the mortgage rates available to you. Lenders price risk based on LTV: the lower your LTV, the less risk for the lender, and the better the rates they offer. Moving from 90% LTV to 85% LTV by saving a larger deposit can reduce your interest rate by 0.5% or more, potentially saving thousands of pounds over the mortgage term.
The best mortgage rates are typically available at 60% LTV or below, meaning you need a deposit of at least 40% of the property value. The next best tier is 75% LTV (25% deposit), followed by 80% LTV. Each tier down generally unlocks better rates and a wider choice of mortgage products from mainstream lenders.
Yes. You can reduce your LTV in two main ways: making overpayments on your mortgage (which reduces the outstanding balance) or if your property increases in value. A lower LTV at remortgage time means you may qualify for better rates, potentially saving significant money on your monthly payments. Many lenders allow overpayments of up to 10% per year without penalty.
Yes. If your property value increases, your LTV falls (assuming your mortgage balance stays the same), which can help you access better rates when remortgaging. Conversely, if property values fall, your LTV rises, which could push you into a higher rate tier. This is why lenders always conduct a formal valuation as part of every mortgage application and remortgage.
Most mainstream mortgage lenders in the UK offer products up to 95% LTV (meaning a 5% deposit). Above 95% LTV, mortgages are extremely rare and generally not available to standard residential borrowers. The government's Mortgage Guarantee Scheme has at various times supported 95% LTV lending for qualifying buyers, helping those with smaller deposits get on the property ladder.
At lower LTV ratios (60–75%), virtually all mainstream lenders offer products with the most competitive rates and greatest product variety. As LTV increases toward 90–95%, fewer lenders participate and product choice narrows considerably. At 95% LTV only a small number of specialist or scheme-backed products may be available, and rates are significantly higher to reflect the increased lender risk.
A revaluation is when a surveyor or lender reassesses the market value of your property. This typically happens at remortgage time. If the revaluation comes in higher than the original purchase price, your LTV improves, potentially unlocking better rates. If it comes in lower (a down-valuation), your LTV worsens. Property values can change significantly between purchase and remortgage, so a revaluation is an important factor in your planning.
Overpayments reduce your outstanding mortgage balance, which directly lowers your LTV (assuming property value stays constant). Even small regular overpayments can move you into a lower LTV tier over time. For example, if your mortgage is at 81% LTV, overpaying to reach 80% LTV could unlock a lower rate band at your next remortgage, saving money on monthly payments for the entire new deal period.
LTV works the same way for buy to let mortgages, but lenders typically require lower LTV ratios. Most buy to let mortgages require a minimum deposit of 25% (75% LTV), and the best buy to let rates are available at 60–65% LTV. Buy to let lenders also assess rental income against mortgage payments (rental coverage ratio) alongside LTV when determining affordability and the rates available to you.