Calculate your loan-to-value ratio to see which mortgage rate tiers you're likely to qualify for based on your deposit or equity.
The property's current value or purchase price
What you're putting down, or your equity if remortgaging
Loan-to-value
80.0%
This result is an estimate only and does not constitute financial advice.
Loan amount needed
£280,000
This result is an estimate only and does not constitute financial advice.
Note: Lenders round LTV up, not down — a ratio of 80.1% is usually priced as an 85% tier deal, not 80%. If your LTV sits just above a boundary, a slightly larger deposit can unlock a meaningfully cheaper rate.
Loan-to-value (LTV) is the size of your mortgage expressed as a percentage of the property's value. A £280,000 mortgage on a £350,000 property is 80% LTV — the remaining 20%, or £70,000, is your deposit if you're buying, or your equity if you're remortgaging.
Lenders use LTV as their main measure of risk. The more equity or deposit you have behind the loan, the less they stand to lose if you can't keep up repayments and the property has to be sold — so lower-LTV borrowers are consistently offered the cheapest rates on the market.
Rather than pricing every LTV individually, lenders group deals into bands — commonly at 60%, 75%, 80%, 85%, 90% and 95% — and apply one rate across each band. That means the difference between 79% and 81% LTV can be a real jump in rate, even though the risk barely changes, because 81% falls into the next band up.
If you're close to a band boundary, it's often worth finding a few thousand pounds more deposit, or waiting a little longer for your equity to grow, before you apply — the saving from dropping into a cheaper tier usually outweighs the cost of waiting.
Use the calculator above to work out your exact LTV and see which tier you're likely to qualify for.
Compare live mortgage deals across every LTV band and find out which rate tier you actually qualify for.