Calculate your LTV

Posted by siteadmin on Tuesday 8th of November 2022.

Step 2: Calculate your LTV


Do you know the value of your property?

Understand how your Loan-To-Value can reduce your monthly mortgage payments.


What is Loan-to-Value (LTV)?


Loan-To-Value relates to the ratio used in mortgage lending to determine the percentage of your borrowing compared to the value of the property. Typically, the higher the LTV% is the higher the risk is to the lender usually resulting in a higher interest rate.


How do I calculate my LTV%?


Easily calculate the LTV ratio of your property following this formula:


LTV ratio = Mortgage Amount/Property ValueX100


If you divide the mortgage amount (amount borrowed) by the property's value this will give you the LTV as a percentage. For example, if a property is worth £250,000 and you put down £30,000 deposit the mortgage amount to be borrowed would be £220,000. Doing the calculation above will give you the result of an 88% LTV.


Try and work out your LTV%