Loan to Value (LTV) Calculator

Use this loan-to-value calculator to figure out the deposit you need for potential property investments.

You can use it by either entering the deposit you have or by entering the LTV that you want %.

💡Tip: Most buy-to-let lenders will want your LTV to be 75% or less.

🏠 Buy to Let – Loan to Value Calculator

Why is LTV Important for Property Investors?

Loan to value is very important to know as a property investor because lenders will specify how much they are willing to lend to you based on the loan to value.

For example, a lender might say that they are willing to lend up to 75% of the property value.

This means you’ll need atleast 25% of the purchase price JUST for the deposit for an investment property.

So in this scenario, you need to make sure you have a high enough deposit amount so that the mortgage loan is 75% or less of the total purchase price.

Loan to Value Formula

The loan to value is a percentage and it’s calculated as follows

  • (Loan Amount / Asset Value ) x 100 = Loan to value %

So in the case of a buy-to-let property, you use the mortgage amount for the loan amount and the property value for the asset value.

  • ( Mortgage Amount / Property Value ) x 100 = Loan to value %

Example LTV Calculation

Here’s an example calculation:

  • Property price = £200,000
  • Mortgage amount = £150,000

So to find the LTV do the following calculation:

  • Loan to value = ( £150,000 / £200,000 ) x 100 = 75 %