UK · GBP · Core mortgage tools
UK Loan-to-Value Calculator
Calculate equity, LTV and the principal reduction needed for an entered target ratio.
Reference scope documented 2026-10-25. Residential tax bands are jurisdiction-specific. Rates, fees, budget buffers and lender ratios must come from current quotes or clearly labeled assumptions. Confirm legal buyer status and scheme conditions.
Your inputs
Your estimate
Press Calculate estimate after entering your figures.
Educational estimate, not financial advice. Disclaimer · Methodology · Corrections.
How this estimate works
LTV = total principal / assessed value × 100. Equity = value − principal. Target principal reduction = max(0, principal − value × target LTV).
Assumptions and limits
- Amounts are GBP. Enter actual quotes, balances and costs. Planning settings are editable assumptions; no lender rate is fabricated.
- Monthly nominal-rate amortization; fixed-rate projection across the entered remaining repayment period. Actual daily accrual, payment dates, product fees, rate resets and lender rounding can differ.
- This is educational scenario arithmetic, not a mortgage offer, agreement in principle, tax assessment or scheme/credit approval.
- Negative equity is shown. A target band is a scenario, not an available mortgage rate or offer.
References and further reading
Worked United Kingdom example: UK Loan-to-Value Calculator
This is a hypothetical arithmetic example in GBP, not a current lender quote, market observation or borrower record. The same calculator model produces the figures below. Its input assumptions are shown so that you can reproduce or change the scenario.
| Assumed input | Illustration value |
|---|---|
| Current lender-assessed property value (GBP) | 350,000 |
| Current principal including financed fees (GBP) | 262,500 |
| Target LTV scenario (%) | 75 |
| Calculated measure | Result |
|---|---|
| Equity at entered valuation | £87,500.00 |
| Loan to value / loan to value ratio | 75% |
| Principal reduction to your target ratio | £0.00 |
Amounts use unrounded intermediate arithmetic and are rounded only for display. Selecting different costs, rates, payment dates or terms changes the result; no illustration value is prefilled into your personal financial fields.