Mortgage guide
How LTV works — and why it matters
Loan-to-value, or LTV, compares what you owe with what your home is worth. It is one of the ways lenders assess a remortgage — useful to understand, but not a promise of a particular rate.
The simple calculation
Divide your mortgage balance by your property value, then multiply by 100. If you owe £180,000 on a home worth £240,000, your LTV is 75%. As the balance falls or the value changes, the percentage changes too.
How LTV brackets work
Lenders often group products into LTV bands, such as 95%, 90%, 85%, 80%, 75%, 70% and 60%. The exact bands and available rates differ by lender and product. Moving into a lower band can widen the range of deals to compare, but it does not guarantee an offer or a particular rate.
Why people watch LTV at remortgage
Your rate can also depend on affordability, income, credit history, the property and the lender’s criteria. Still, knowing your LTV before a deal ends gives you a useful starting point for comparing the full cost of options, including fees.
How an overpayment may help
Paying extra can reduce the mortgage balance, which may improve your LTV if the property value is unchanged. Use the mortgage overpayment calculator to explore a regular amount, then keep lender limits and early repayment charges in view — especially during a fixed deal.
See your LTV alongside your plan
Fledged tracks your mortgage balance, LTV milestones and overpayments in one place.
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