Deposit & LTV Calculator

The Deposit & LTV Calculator tells you your loan-to-value ratio (LTV), the percentage of a property's price you are borrowing, and which standard mortgage rate shelf your deposit unlocks.

This is a calculation tool, not financial advice. Mortgage rates, lending criteria, and product availability vary by lender and change frequently. Speak to a qualified mortgage adviser before making decisions.

How to Use

1. Currency: select £, $, or € in the top-right toggle. This changes the currency symbol only; the maths is identical.
2. Property Price: enter the purchase price of the property.
3. Deposit: either tap one of the quick-select chips (5%, 10%, 15%, 20%, 25%) or type a custom pound/dollar/euro amount directly in the deposit field. The two inputs mirror each other, so changing one updates the other automatically.
4. Read the result: the headline LTV percentage appears in the bottom bar; the Results tab shows the full breakdown and shelf table.

What Is LTV?

Loan-to-Value is the ratio of the mortgage (loan) to the property value. A £350,000 property with a £52,500 deposit (15%) requires a loan of £297,500, an LTV of exactly 85%.

LTV is the primary risk metric lenders use to price mortgages. A lower LTV means the lender has more security (more equity in the property), so the borrower is offered a lower interest rate.

Why Lenders Price in 5% Shelves

Lenders set their mortgage product ranges at standard LTV "tiers", most commonly 95%, 90%, 85%, and 75%. Products at a given tier are available to anyone whose LTV sits at or below that level.

This means there are meaningful pricing cliffs. A borrower at 91% LTV and one at 90% LTV may face very different rate options, even though their deposits differ by only 1% of the property price. Understanding your shelf helps you decide whether a slightly larger deposit is worth stretching for.

According to MoneyHelper, the 75% LTV tier typically offers the widest product choice and most competitive rates.

Deposit vs Down Payment

"Deposit" (UK) and "down payment" (US) are the same concept: the buyer's upfront cash contribution to the purchase. "Equity" is the same amount expressed as a proportion you own: a 15% deposit equals 15% equity at completion.

Worked Example at £350,000

The borrower qualifies for 85% LTV products. To access the next shelf (75%), they would need £87,500 in deposit, an extra £35,000.

Formula & How It Is Calculated

The calculator uses three straightforward steps:

Step 1, Deposit amount (when entering a percentage):

$$\text{deposit}=\text{price}\times \frac{\text{deposit\%}}{100}$$

Step 2, Loan amount:

$$\text{loan}=\text{price}-\text{deposit}$$

Step 3, LTV:

$$\text{LTV\%}=\frac{\text{loan}}{\text{price}}\times 100$$

For a £350,000 property with a 15% deposit:

$$\text{deposit}=350,000\times \frac{15}{100}=\pounds 52,500$$ $$\text{loan}=350,000-52,500=\pounds 297,500$$ $$\text{LTV\%}=\frac{297,500}{350,000}\times 100=85\%$$

All arithmetic is performed with 64-digit precision (BigNumber arithmetic) to avoid floating-point rounding on large monetary amounts.

Shelf assignment: the calculator maps LTV to the smallest standard band the borrower qualifies for, so 85% LTV lands on the 85% shelf, 88.57% LTV lands on the 90% shelf (the next tier up), and anything above 95% has no shelf (outside standard lending criteria).

FAQ

Does a gifted deposit count the same as a saved deposit?

For LTV purposes, yes. LTV is calculated on the amount borrowed vs the property price regardless of where the deposit came from. However, most lenders require a gifted deposit letter from the donor confirming the money is not a loan, and some products restrict gifted deposits. Check the specific lender's criteria.

Which LTV shelf gets the best rates?

Generally, 75% LTV and below offers the most competitive rates. At this level, the borrower has substantial equity and the lender's exposure is lower. Rates typically step down at each 5% increment. Source: MoneyHelper, Mortgages Explained.

What if my LTV is above 95%?

A deposit below 5% (LTV above 95%) falls outside the criteria of most standard residential lenders in the UK. Government-backed schemes such as the Mortgage Guarantee Scheme have existed to support 95% LTV lending; check current availability with a mortgage adviser.

Is LTV the same as equity?

LTV and equity are the same proportion viewed from opposite sides. If your LTV is 85%, your equity (ownership stake) is 15%. As you repay the loan or the property appreciates, LTV falls and equity rises.

Do lenders use purchase price or valuation?

Lenders typically use the lower of purchase price and their own surveyor's valuation. If the valuation comes in below the purchase price, your effective LTV is higher than you calculated. This is worth watching on properties bought above asking price.

Can I use this calculator for remortgaging?

Yes. Use the current outstanding mortgage balance as the "loan" (via the deposit amount field, entering price − balance as the deposit) or enter the property's current estimated value as the price and calculate from there.