## What Is My Loan-to-Value?

You can work out your LTV with our loan-to-value calculator.

Simply enter your property value and either your deposit or loan amount and hit the calculate button.

Please note that the max loan-to-value on a mortgage is 95% (as of March 2019).

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This is not a quotation under the Consumer Credit Act. Mortgage application approvals are also subject to validation of income, credit checks and a property valuation.

## What Is Loan-to-Value?

You’re bombarded with a lot of jargon when you start applying for a mortgage. Fixed rate, SVR, interest only, cashback, etc. etc. One industry term that always crops up – and one you really need to understand - is loan-to-value ratio or LTV.

The meaning of loan-to-value is a lot simpler than you might think. In fact, the term loan-to-value explains itself; it’s the ratio between your loan amount and the value of the property. It can be a little confusing as it’s often expressed as a percentage. We show you how to work out your LTV manually, below.

### How to Calculate LTV for Mortgage

• You want to buy a house for £400,000
• You have £80,000 in savings that you want to put down as a deposit
• You take out a mortgage/loan to cover the remaining amount: £400,000 - £80,000 = £320,000
• Your LTV is 80%: (£320,000 – 400,000) x 100 = 80

## What Your Loan to Value Means for Repayments

It’s important to note that you’ll only repay and be charged interest on the amount you borrow, not the full value of the property. Therefore, you want your loan-to-value to be as low as possible - the less you borrow, the less you have to pay back in the long term.

The maximum loan-to-value you can take out on a mortgage is 95% which means the minimum deposit you would need to put down is only 5%.

## After You’ve Used the LTV Calculator

Now you’ve worked out your LTV, you’re ready to start looking at the mortgage deals on the market right now. You can also call us on 03304 332 927 to speak to an adviser.

#### Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is St. Helen's, 1 Undershaft, London, EC3P 3DQ. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.

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