Loan to value and equity calculator
Loan to value decides the mortgage rates you can get. See yours now, how much it would take to reach the next band, and how your equity could grow.
How this is calculated
Loan to value is the mortgage balance divided by the property value. Equity is the value less the balance.
Lenders price deals in bands, commonly 60%, 75%, 80%, 85%, 90% and 95%. The calculator shows how far you are from the next band down.
The future figures grow the value at your assumed rate and reduce the balance by your normal repayments.
Rates used · 2026/27
| Loan to value | balance divided by value |
| Equity | value less balance |
| Common bands | 60%, 75%, 80%, 85%, 90%, 95% |
| Negative equity | owing more than the value |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
A £210,000 mortgage on a £300,000 home is 70% loan to value, with £90,000 of equity. Paying £30,000 off would reach the 60% band. After five years of repayments and 2% a year growth, the loan to value would be about 55.7% and the equity £146,723.
Common questions
What is a good loan to value?
Lower is better. The best rates are usually at 60% or below, and each band down often brings a lower rate.
How do I lower my LTV?
Overpay the mortgage, or wait for the value to rise. A new valuation when you remortgage can also move you into a lower band.
Can I release equity?
Yes, by remortgaging for more or with an equity release product. Both mean borrowing against your home, so take advice.
What value does the lender use?
Its own valuation, which can differ from what you think the home is worth.