What is my LTV ratio on a mortgage?

Image of What is my LTV ratio on a mortgage?
Tuesday March 21, 2023

LTV? Love to vibe? Lost the vote? I’m confused??

LTV, or loan-to-value, is a mortgage term to measure how much money you’re borrowing compared to the value of something you’re buying, usually a property. Think of it like a percentage showing how much of the property’s cost you need to borrow from a lender.

For example, imagine you want to buy a house that costs £100,000. If you have £20,000 saved up, you would use that money as a deposit. This means you still need £80,000 to pay for the rest of the house. In this case, you’d ask a bank or another lender for a loan (mortgage) to cover the £80,000.

To find the LTV, you simply divide the amount you need to borrow (the loan) by the total cost of the house (the value). Then, multiply the result by  to get a percentage.

In our example:

Loan-to-value (LTV) = (Loan Amount ÷ House Cost) x 100

LTV = (£80,000 ÷ £100,000) x 100 = 0.8 x 100 = 80%

So, the LTV in this example is 80%, which means you’re borrowing 80% of the cost of the house, and you’re using your own money to cover the other 20%.

Lenders use the LTV to help them decide how risky a loan might be; borrowing less of the property’s cost (a lower LTV) usually means the loan is less risky for the lender.

Don’t be confused by mortgages. Instead, come and have a chat with us. At largemortgageloans.com, we can simplify the jargon and secure you a great mortgage deal. Give us a call ️or drop us a message now.

Our insights

We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk. The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Largemortgageloans.com Ltd is a licensed credit broker, and not a lender.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.

Make An Enquiry

London Office (Main):


London Office (Main):


Largemortgageloans is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London