Loan-to-value (LTV) calculator
A £25,000 deposit on a £250,000 home gives an LTV of 90.0%, which sits in the up to 90% band. Loan-to-value is the mortgage divided by the property price, and lenders group deals into bands at 60%, 75%, 85%, 90% and 95%, pricing the lowest bands more cheaply.
Why does LTV matter for my rate?
Loan-to-value is the mortgage divided by the property price. A bigger deposit means a smaller loan against the same property, so the LTV is lower and the lender is risking less. That is why rates fall as LTV drops. Lenders group deals into bands, and the pricing steps down at each boundary: 95%, 90%, 85%, 75% and 60%.
The boundaries deserve the closest attention. Sitting at 91% LTV rather than 89% can mean a more expensive band for the sake of a small deposit gap. Finding a little more deposit to slip under a boundary can cut the rate for the whole fixed period, often saving far more than the extra deposit itself.
What LTV would a typical deposit give?
A £250,000 home with a £25,000 deposit needs a £225,000 mortgage, an LTV of 90.0%. That sits in the up to 90% band. Adding about £12,500 more deposit would bring the LTV under 85% and into a cheaper band.
Common questions
What is loan-to-value?
Loan-to-value is the size of your mortgage as a percentage of the property price. A £25,000 deposit on a £250,000 home means a £225,000 loan, which is an LTV of 90.0%. The rest, your deposit, is 10.0% of the price.
Why does LTV matter for my rate?
Lenders price by LTV band. A lower LTV means the lender is risking less against the property, so the rate is cheaper. The best rates usually sit at 60% LTV or below, then rates step up at 75%, 85%, 90% and 95%. Slipping under a band boundary can noticeably cut your rate.
How do I get into a lower LTV band?
Put down a bigger deposit, buy a cheaper property, or wait while you save more and prices or your equity change. Even a small extra deposit that takes you from just above a boundary to just below it can move you into a cheaper band.
What LTV do I need to buy?
Many lenders go up to 95% LTV, meaning a 5% deposit, though the rates are the highest. A 10% to 15% deposit opens up better deals, and 25% or more reaches the most competitive rates. There is no single required figure, but a larger deposit almost always helps.
Does LTV change over time?
Yes. As you repay the mortgage the balance falls, and if the property value rises your equity grows, so your LTV drops. That is why remortgaging after a few years can land you in a cheaper band than when you first bought.
What LTV would a typical deposit give?
On a £250,000 home, a £25,000 deposit leaves a £225,000 mortgage, which is an LTV of 90.0%. That falls in the up to 90% band described above. A smaller deposit pushes the LTV higher and into a more expensive band, while a larger deposit pushes it lower. The example uses round figures, so entering the actual price and deposit gives the precise band that applies.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.