Loan-to-Value Ratio Calculator

A loan-to-value (LTV) calculator provides a snapshot of how much equity you have in your property and is particularly useful when you’re considering remortgaging.

Below, you’ll find one that’s free and easy to use. Learn how the calculations may differ depending on the type of mortgage you have and what to do once you have this information.

How to calculate your loan-to-value for a mortgage or remortgage application

To calculate your loan-to-value (LTV) ratio, simply divide your mortgage loan amount by the value of your property and multiply by 100 to express it as a percentage. So, for example, if your property (or the one you’re looking to buy) is worth £200,000 and the mortgage is £150,000, then the LTV would be 75% (£150,000 / £200,000 x 100).

Whether you’re looking to remortgage or move home, LTV is a key indicator of the mortgage interest rate deals available in the market. Most rates are typically bracketed into different LTVs, with the best deals usually reserved for the lowest ratios.

How our calculator works

Our loan-to-value ratio calculator is straightforward to use.

No personal details are required; all you need to input is the following:

• The value of your property/purchase price
• Amount of the mortgage (either the outstanding balance if remortgaging or loan required)

And that’s it! The calculator will then show you the LTV based on your input figures. If you’re unsure how much deposit/equity you may have, you can keep re-inputting different amounts until you know the exact amounts.

Are the calculations any different for buy-to-let?

No, not at all. As explained above, the calculations will be the same regardless of whether you have a residential or buy-to-let mortgage.

Suppose you want to purchase a property or remortgage as a buy-to-let investment. In that case, it’s worth noting that lending criteria will usually involve a lower LTV (typically 70%-75% or below) as these types of mortgages are seen as slightly higher risk due to the potential uncertainty for continuous rental premiums throughout the loan term.

How to calculate the loan-to-value on a Shared Ownership mortgage

Shared Ownership Mortgages are the exception to the main rule when working out your LTV, as it would be calculated only on the portion you own rather than the property’s overall value.

To use the example from the above section, if a house is valued at £200,000 but you’re only purchasing 75% using the Shared Ownership scheme, then the LTV will be based on that amount, £150,000.

So, if you had the same equity, £50,000, you’d need a mortgage for £100,000, and the LTV would now equate to 66.67% (£100,000 / £150,000 x 100). But based on the overall property value, the LTV would be 50%.

What you should do next

Once you’ve used our loan-to-value calculator, you can proceed to the next step in the mortgage or remortgage process. The shrewd move now would be to seek the help of a mortgage broker who can outline all the options available to you.

The mortgage brokers we work with have been specifically selected based on their expertise and knowledge of the mortgage market. They would be best placed to help you find the right solution for your circumstances.

So, get in touch or give us a call at 0330 818 7026, and we’ll arrange for a specialist advisor to contact you immediately.