Useful next calculations
When to use this calculator
- Before comparing mortgage products, brokers or repayment types.
- When you want to test how a different deposit, rate or term changes the payment.
- When you need a quick estimate before using a formal illustration or agreement in principle.
- When you are stress-testing your budget against a higher rate.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Loan Amount (£) | £180,000 |
| Property Value (£) | £225,000 |
For those figures the calculator returns:
- LTV: 80.00%
- Equity: £45,000.00 (20.00%)
How to read your results
LTV
Loan-to-value is the mortgage as a percentage of the property value. Crossing common LTV bands can change product eligibility and pricing.
Method & assumptions
This calculator divides your outstanding mortgage or proposed loan amount by the property's current or purchase value, then expresses the result as a percentage. The figure it produces is your loan-to-value ratio. It assumes a straightforward first-charge residential mortgage and does not account for second charges, shared ownership arrangements, or Help to Buy equity loan balances, which can affect the effective LTV seen by a lender. The tool uses the figures you enter directly — it does not apply any valuation adjustment or index property prices. For remortgage purposes, you should use a current market valuation rather than your original purchase price. This calculator is for illustrative purposes and does not constitute mortgage advice.
Common mistakes
- Mixing up loan amount and property value, which can distort affordability and LTV.
- Using a headline rate but forgetting fees, insurance, taxes or repayment type.
- Testing only one term length instead of comparing the payment and total cost together.
- Forgetting that a repayment mortgage and an interest-only mortgage produce very different monthly figures.
What to do next
- Run a second scenario with a higher rate or shorter term so you can see the downside clearly.
- Compare the result with an affordability or overpayment calculator before applying.
- Note the monthly payment and total interest for your strongest scenarios before you speak to a broker.
- Check whether a modest overpayment would reduce total interest — use the overpayment calculator next.