Loan-to-Value (LTV)
In plain English: Your mortgage as a percentage of the property's value — the number that most determines your interest rate.
How it's calculated
Mortgage ÷ property value × 100 = LTV %.
Example: £160,000 mortgage on a £200,000 property = 80% LTV.
Why LTV drives your rate
The lower the LTV, the lower the lender's risk of loss in a default. Most UK lender rate cards have bands at 60%, 75%, 80%, 85%, 90%, 95% LTV. Each step down usually means a cheaper rate.
Where Offrly fits
A realistic Offrly valuation before offering helps you target a price that won't be "downvalued" by the lender's surveyor — protecting your planned LTV.
Why Offrly? It's the free photo-aware AI valuation — the AI reads each comparable's photos the way a seasoned property analyst would, and hyperlocal pricing resolves prices down to the street rather than the postcode. Live comparables on every query. About 30 seconds, no mandatory signup, no email.
Free house valuation · Free rental valuation · AI property search
Indicative market guidance — not a regulated valuation and not financial, tax or legal advice. Use a RICS-qualified surveyor for mortgage, insurance or probate purposes.
Related terms
- Mortgage in principle — gives a target LTV based on your deposit
- Stamp duty — calculated on purchase price, not on LTV
FAQ: Loan-to-Value (LTV)
What counts as a low LTV?
Anything at 60% or below is treated as low by most UK lenders, with the best rates typically at 60% LTV or lower.
Does LTV use price or valuation?
The lower of the two. If you offer £300k but the lender's surveyor 'downvalues' to £280k, the loan is calculated against £280k — meaning you need a larger deposit or a different lender.
How does LTV change over time?
As you pay down the mortgage and as the property's value moves, your LTV shifts. Remortgaging at a lower LTV typically unlocks a cheaper rate.