Loan-to-value, usually shortened to LTV, compares a mortgage loan with the property's value. It is expressed as a percentage. MoneyHelper describes it as the amount borrowed compared with the value of the home.
Work through the arithmetic
Divide the mortgage amount by the property value, then multiply by 100. For a purely illustrative calculation, a £180,000 loan against a £240,000 property gives 75% LTV. These invented figures demonstrate the formula; they are not a lending offer or an example of an available property.
Identify the value being used
An owner's estimate, an asking price and a lender's accepted valuation may differ. Ask which figure the lender will use and how any difference affects the application. Do not assume that improvements automatically increase the accepted value by the amount spent.
Keep other costs separate
The LTV percentage does not describe the complete cash needed for a purchase. Plan separately for fees, taxes where applicable, moving costs and any work. Check whether a quoted loan figure includes fees and how the lender treats them.
Do not confuse LTV with approval
Affordability, the property and the lender's criteria also matter. A percentage within a product's stated range is not a promise that an application will be accepted. Use an authorised mortgage adviser or the lender to discuss the appropriate options and the full cost.
Editorial review: 14 October 2026. This original Property Perpetuity guide replaces the imported text; the original archive publication date is retained.