LTV Calculator United Kingdom 2026-27
Calculate your LTV and see which rate band it puts you in — UK lenders price by LTV tier (60/75/85/90/95%) instead of charging mortgage insurance. Includes band-saving estimates and guarantor modelling.
Check your loan-to-value ratio before you apply.
LTV determines your rate band — UK products are tiered at 60/75/85/90/95% LTV. No UK lender charges a mortgage-insurance premium.
Select the question that matches where you are right now.
LTV (Loan-to-Value Ratio) is your loan amount expressed as a percentage of the property value. UK lenders price by LTV band: the lower your LTV, the cheaper your rate. There is no borrower-paid mortgage insurance — a small deposit just means a higher-rate band, which still lets you buy sooner.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
All calculations run entirely in your browser using standard formulas. The calculator code does not submit your figures to GlobalCalc to obtain a result.
The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
Most financial variables have a non-linear relationship with the result — they compound. The sensitivity table in Advanced mode shows this clearly.
To improve this result, focus on the inputs with the highest leverage. Small changes to the right variable often produce much larger outcomes than large changes to less important ones.
Adjust inputs one at a time. The one that moves the result most is your binding constraint — focus effort there first.
Use the Scenario A/B feature in Advanced mode to compare two situations side by side.
Many financial decisions benefit from timing. Starting earlier, fixing a rate at the right moment, or clearing a debt before applying for new credit can each produce significant improvements.
Depending on what you are planning, these are the natural next steps after reviewing this result.
This calculator shows one part of a financial decision. The related calculators below help you model adjacent factors.
Switch to Standard or Advanced mode and use the scenario comparison tool to model best, expected, and worst case.
For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How LTV is calculated and why it matters
LTV formula
LTV = (Loan amount ÷ Property value) × 100. A £480,000 loan on a £600,000 property = 80% LTV. The '20% deposit' rule means keeping LTV at or below 80%.
| Property value | 20% deposit | 80% LTV loan | 10% deposit | 90% LTV loan |
|---|---|---|---|---|
| £500,000 | £100,000 | £400,000 | £50,000 | £450,000 |
| £600,000 | £120,000 | £480,000 | £60,000 | £540,000 |
| £750,000 | £150,000 | £600,000 | £75,000 | £675,000 |
| £1,000,000 | £200,000 | £800,000 | £100,000 | £900,000 |
Mortgage Indemnity Guarantee — cost and when it applies
Does the UK have mortgage insurance?
Not as a borrower-paid product. The old Mortgage Indemnity Guarantee (MIG) / higher-lending-charge fees died out in the 2000s — no mainstream UK lender charges one today. Instead, lenders price LTV risk through the interest rate: products are tiered at 60%, 75%, 85%, 90% and 95% LTV, and each band up costs more.
| LTV band | Indicative rate vs ≤60% | On a £270,000 loan |
|---|---|---|
| ≤60% | Best rates | — |
| 61–75% | ~+0.25% | ~£675/yr more |
| 76–85% | ~+0.5% | ~£1,350/yr more |
| 86–90% | ~+0.85% | ~£2,295/yr more |
| 91–95% | ~+1.3% | ~£3,510/yr more |
Why 80% LTV is the key threshold
What changes at each band
UK products are priced in LTV bands, so crossing a boundary — even by £1 — moves you to a different product range. The big steps are at 75% and 85%: below 75% most of the market is open at strong rates; above 90% choice narrows and rates climb; 95% products exist (supported by the mortgage guarantee scheme) but carry the highest rates. If you are within a few thousand pounds of a band boundary, a small extra deposit often pays for itself within the fixed period.
LTV and first home buyer schemes
Low-deposit routes that actually exist
95% mortgage guarantee scheme: made permanent from July 2025 — you put down 5% and take a normal 95% mortgage on a property up to £600,000; the government guarantees a slice of the lender’s losses, not yours, and you pay nothing for it (Help to Buy itself closed in March 2023).
Shared Ownership: buy a 10–75% share of a home with a deposit of at least 5% of the share (not the whole property), paying rent on the rest and staircasing later.
First Homes: new-build discount of 30–50% for eligible first-time buyers, which also drops your LTV band.
Guarantor / JBSP mortgages: family support can unlock higher LTV or better pricing, but the guarantor takes on real risk.
Using LTV to time refinancing decisions
LTV and refinancing
When your LTV falls below 80% through repayments or property value increase, you may qualify for a cheaper LTV band on remortgage and better pricing on any top-up borrowing. Tracking your current LTV helps identify the right time to refinance.
How to calculate current LTV
Current LTV = (Outstanding loan balance ÷ Current property value) × 100. If you owe £420,000 on a property now worth £600,000, your LTV = 70%. This may qualify you for a better rate tier at your lender or a competitor.
Frequently asked Frequently asked questions
What is LTV?
LTV stands for Loan-to-Value Ratio: your loan amount as a percentage of the property value. A £480,000 loan on a £600,000 property = 80% LTV. UK lenders price in LTV bands — 60%, 75%, 85%, 90% and 95% — and each band boundary you cross changes which products and rates you can get. No UK lender charges a mortgage-insurance premium.
What happened to Mortgage Indemnity Guarantee (MIG)?
Nothing — because it does not exist as a UK borrower cost. No mainstream UK lender charges a mortgage-insurance premium at any LTV. The cost of a small deposit shows up in your interest rate instead: a 90% LTV mortgage is typically priced ~0.6–1% above a 60% LTV one. Use the calculator above to see the indicative annual cost of your band.
Can I buy with less than a 20% deposit?
Yes — through the permanent 95% mortgage guarantee scheme (5% deposit, properties to £600,000), Shared Ownership (5% deposit on your share), First Homes (30–50% new-build discount), or a guarantor / joint-borrower-sole-proprietor mortgage where family support unlocks higher LTV. None of these involve paying a mortgage-insurance premium.
Where these figures come from
Property and mortgage figures on this page are drawn from HMRC (Stamp Duty Land Tax), The Bank of England (mortgage-rate data), The FCA (mortgage conduct rules), and HM Land Registry (house-price data).
- Stamp Duty Land Tax (SDLT) rates — GOV.UK — Stamp Duty Land Tax.
- UK mortgage rate & lending data — Bank of England — Mortgage lending statistics.
- FCA mortgage conduct rules — FCA — Mortgages.
- UK House Price Index — GOV.UK — UK House Price Index.
- Rental income & Section 24 mortgage interest relief — GOV.UK — Rental income and tax.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.