What is loan-to-value (LTV) and why does it matter?

Loan-to-value is the mortgage as a percentage of the property price (or valuation). It’s the single biggest factor in the rate you’ll be offered.

How LTV is calculated

Mortgage ÷ property value × 100. £180,000 mortgage on a £200,000 property is 90% LTV.

The bands that shape your rate

• 60% LTV — best rate tier. Major lenders compete hard here.
• 75% LTV — typically the “best mainstream” band.
• 85% LTV — strong choice, rates only slightly above 75%.
• 90% LTV — viable, rates step up noticeably.
• 95% LTV — fewer lenders, higher rates.

Drop a band with a small top-up

If you’re at 91% LTV, finding another 1% of deposit drops you into the 90% band — often saving £40–£100/month.

LTV after a remortgage

Your LTV usually falls naturally over time — you’ve paid down some balance and the property may have grown in value. A new valuation at remortgage often unlocks a much better band.