At a Glance
- This tool calculates your current equity and LTV, then shows the maximum additional borrowing available at four common thresholds used by secured lenders – understanding LTV thresholds
- Most mainstream secured lenders will consider up to 85% combined LTV – the 90% threshold is available from specialist lenders only and typically carries higher rates – what each threshold means in practice
- The repayment model in step two uses the standard reducing-balance formula – figures are illustrative and the rate you are offered will depend on your individual circumstances – how the repayment model works
- LTV is only one factor – income, credit history, property type, and loan purpose all affect what a lender will actually offer, and the calculator cannot account for any of these – what else affects how much you can borrow
- The lender will commission their own valuation – if it comes in lower than your estimate, the maximum loan reduces accordingly – why the lender’s valuation is what counts
- Fees including arrangement, valuation, and legal costs sit outside the repayment figure the calculator shows and should be factored in separately – are there other costs beyond the monthly repayment?
The Secured Loan LTV & Equity Calculator
How much can I borrow against my home?
Enter your property value and outstanding mortgage to see your equity position, how much you may be able to borrow at different LTV thresholds, and what the repayments might look like.
The table below shows how much you may be able to borrow at each LTV threshold. Select a row to model the repayments in the next step.
| LTV threshold | Availability | Max additional borrowing |
|---|
Select a borrowing amount from the table above to model repayments.
All figures are illustrative only and are not a quote, offer, or financial advice. Monthly repayment figures use the standard annuity formula (reducing balance, monthly compounding). The APR you are offered will depend on your individual circumstances, credit history, and the lender’s criteria. Equity and LTV figures are based on the values you enter – use a professional valuation for a precise figure. Secured lending is always an advised process in the UK; a qualified broker will assess your full situation before any offer is made. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
About this calculator
Who it is for
Homeowners who want to understand how much equity they hold and how much a secured loan lender is likely to advance against it.
What it does
Calculates your current equity and loan-to-value ratio, then shows the maximum additional borrowing available at common LTV thresholds – with illustrative monthly repayment figures.
When to use it
Before approaching a lender or broker – to establish your equity position and get a realistic sense of the loan sizes available to you before any credit checks are run.
Where it fits
The starting point in the secured loan journey. Once you know your equity position, the eligibility checker is the natural next step.
Why it matters
LTV is the single most important number in a secured loan application. Knowing yours before you apply means fewer surprises and a more focused conversation with a broker.
How this calculator works
Enter your property details
Input your estimated property value and your outstanding mortgage balance. Use a recent sale comparison or your last mortgage statement – exact figures are not needed at this stage.
See your equity and LTV
The tool instantly shows your current equity, your current LTV, and the maximum additional borrowing available at each common LTV threshold lenders use.
Select a borrowing amount
Click a row in the results table to select a borrowing amount that interests you. This passes the figure into the repayment modeller in step two.
Model the repayments
Adjust the illustrative APR and loan term sliders to see how monthly repayments and total interest change. All figures use the standard reducing-balance formula.
Understanding LTV thresholds
Loan-to-value is the total secured borrowing on a property expressed as a percentage of its value. The threshold a lender will lend to determines how much you can borrow. Here is what each common threshold typically means in practice.
75% LTV
Widest lender choice
Most lenders and most competitive rates. A strong equity position that gives lenders the most confidence.
80% LTV
Still broad availability
The majority of mainstream lenders will still consider applications at this threshold. Rates remain competitive.
85% LTV
Most common maximum
The standard upper limit for most secured lenders. Fewer products available than at lower LTVs, and rates typically reflect the reduced equity buffer.
90% LTV
Specialist lenders only
Available from a smaller number of lenders. Higher rates reflect the increased risk. Not suitable for all property types or borrower profiles.
What else affects how much you can borrow
LTV is only one part of the picture. Even with strong equity, lenders assess four additional factors before deciding what to offer. If your result from the calculator looks higher than you expected to be approved for, one of these may explain the gap.
Income and affordability
Lenders assess your monthly take-home income against your total existing debt payments. The new secured loan payment must sit within a manageable proportion of your income, regardless of how much equity you hold.
Credit history
Adverse credit does not automatically disqualify a secured loan application, but it narrows lender choice and can reduce the maximum LTV offered. Recent issues carry more weight than older, resolved ones. Our guide to secured loans for bad credit explains how lenders approach this.
Property type and condition
Standard residential houses attract the widest lender choice and the highest LTV limits. Non-standard construction, properties needing significant repair, or those with legal complications may attract more conservative limits or require specialist lenders.
Loan purpose
Most secured loan purposes are acceptable to lenders, including home improvements, debt consolidation, and large purchases. Some lenders apply different LTV limits depending on purpose. Business-related purposes may require a different product entirely.
Frequently asked questions
How is equity calculated on a property?
Equity is the difference between the current market value of your property and the total amount of secured borrowing secured against it. If your home is worth £250,000 and your outstanding mortgage is £100,000, your equity is £150,000. This represents 60% of the property value, meaning your current LTV is 40%. Equity can increase over time as you repay your mortgage, as property values rise, or both. It can also decrease if property values fall, which is why lenders are cautious about lending at very high LTV ratios.
For the calculator, use your best estimate of the current market value rather than the price you paid or an old valuation. If you are unsure, looking at recent sale prices for comparable properties nearby gives a reasonable starting point. A formal valuation, which a lender will commission as part of any application, will establish the figure they use to calculate the maximum loan. Our guide to understanding LTV ratios for secured loans explains how this works in more detail.
What LTV do most secured loan lenders accept?
Most mainstream secured loan lenders will consider applications up to 85% combined LTV on a standard residential property. This means the total of your existing mortgage plus the new secured loan should not exceed 85% of the property value. Some specialist lenders will consider up to 90%, and a small number may go higher in specific circumstances, though availability narrows and rates typically rise as LTV increases.
The LTV limit a lender applies to any specific case also depends on factors beyond the numbers – property type, credit history, income, and loan purpose all play a role. A lender may have a headline maximum of 85% but apply a lower limit to properties of non-standard construction, applicants with recent adverse credit, or very large loan amounts. The calculator shows the maximum borrowing at each LTV threshold based on your property details, but the actual LTV a lender will offer depends on the full picture of your circumstances.
Can I borrow against my home if I own it outright?
Yes. If you own your property without any outstanding mortgage, the whole of its value counts as equity. In that situation you would be taking a first charge secured loan rather than a second charge, because there is no existing lender ahead of you in priority. This can widen your options, since some lenders only offer first charge products, and LTV limits and rates may differ from second charge lending.
Our guide to secured loans without a mortgage covers how this works in practice and what to expect from lenders in this situation.
Does the calculator account for my existing mortgage rate?
The LTV calculator does not model your existing mortgage rate because secured loans sit alongside your existing mortgage rather than replacing it. You continue to make your current mortgage payments as normal, and the secured loan adds a separate monthly payment on top.
If you are weighing up whether a secured loan or a full remortgage makes more financial sense for your situation, the secured loan vs remortgage comparator models both routes side by side, including the effect of your current mortgage rate on the overall cost of each option.
Why might I be offered less than the calculator shows?
The calculator works from the numbers you enter and applies LTV thresholds. It cannot assess your credit history, income, existing commitments, or the actual valuation a surveyor would place on your property. Any of these can result in a lender offering less than the calculator indicates. A lower property valuation reduces the available equity. A poor credit history or high existing debt commitments relative to income can lead a lender to offer a smaller loan or decline an application.
The figures in the calculator should be read as a starting point for understanding the equity position, not as an indication of what any specific lender will offer. The eligibility checker is the right next step to understand how your circumstances are likely to be assessed.
Are there other costs beyond the monthly repayment?
Yes. Secured loans typically involve arrangement fees, valuation fees, and legal costs, some of which are paid upfront and some of which may be added to the loan. The monthly repayment figure in the calculator reflects only the capital and interest on the loan amount at the APR you enter. It does not include fees.
Our guide to APR on secured loans explains what the annual percentage rate includes and what it does not, and how to compare the true cost of different loan offers on a like-for-like basis.
Squaring Up
This calculator gives you a clear starting point for any secured borrowing conversation. By entering your property value and outstanding mortgage, you can see exactly where you stand on equity and LTV before approaching a lender or broker – without any credit checks or commitment.
- LTV determines your maximum borrowing. The calculator shows what is available at 75%, 80%, 85%, and 90% combined LTV – the thresholds most secured lenders work to.
- Lower LTV means more choice and better rates. Most mainstream lenders will consider up to 85%. The 90% threshold is available from specialist lenders only, typically at higher rates.
- The repayment model is illustrative. Step two uses a reducing-balance formula to show how monthly payments change with APR and term. These are not quotes – the rate you are offered depends on your full circumstances.
- LTV is only one part of what lenders assess. Income and affordability, credit history, property type and condition, and loan purpose all affect what a lender will actually offer – the calculator cannot account for any of these.
- The lender’s valuation is what counts. If the surveyor’s figure comes in lower than your estimate, the available loan reduces accordingly. Use a realistic starting figure, not an optimistic one.
- Owning outright changes the picture. With no existing mortgage, you would be applying for a first charge loan rather than a second charge. This widens lender options and can affect LTV limits and rates.
- Fees sit outside the repayment figure. Arrangement fees, valuation fees, and legal costs are not included in the monthly payment the calculator shows. Factor these in when assessing the true cost of borrowing.
Once you have a sense of your equity position, the logical next steps are to check how your full circumstances are likely to be assessed and to understand the costs involved. The tools and guides below cover both.
Ready to see what you could borrow?
Checking won’t harm your credit score Check eligibilityThis calculator is for illustrative purposes only and is not financial advice. Secured lending is an advised process in the UK. The figures shown depend on the values you enter and do not constitute a quote, offer, or lending decision. The APR you are offered will depend on your individual circumstances, credit history, and the lender’s criteria. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
