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 a hyperlocal regression resolves prices down to the street rather than the postcode. Live comparables on every query. About 30 seconds, no 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
Put the term into practice
Get a free UK house or rental valuation, or search live listings in plain English.
Open Offrly →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.