Looking to understand how much you can borrow against a property?
Our loan to value calculator makes it quick and easy to work out your borrowing power. Whether you need a commercial mortgage, bridging loan, or development finance, understanding your LTV ratio helps strengthen your application and gives you a clear picture of your options.
How Our LTV Calculator Works
Simply enter your property’s value in pounds.
Choose your calculation method:
- Deposit Amount: If you know how much deposit you have
- Loan Amount: If you know how much you want to borrow
- LTV Percentage: If you have a target LTV in mind
The calculator shows you four key figures:
- Property Value
- Deposit Amount
- Loan Amount
- LTV Percentage
Your LTV percentage shows what portion of the property value you’re looking to borrow.
For example, if you have a £1 million property and want to borrow £600,000, your LTV would be 60%. The calculator helps you understand this ratio before speaking with lenders.
Need some help?
If you need a short-term bridging loan then a specialist broker is a good place to start. You will get expert help and advice along with a wide range of lenders to choose from.
To get matched with a specialist broker, please call us on 0330 030 5050.
Calculators
Understanding Commercial LTV Ratios
LTV (Loan to Value) measures the relationship between your loan amount and the property’s value.
For commercial finance, LTV limits vary based on your property type and intended use. A lower LTV often means better interest rates and more lender options.
Commercial LTVs differ from residential mortgages.
Let’s say you’re buying an office building valued at £500,000. With a 30% deposit of £150,000, you’d need a loan of £350,000 – giving you a 70% LTV. Most commercial lenders look at various other factors beyond just the LTV ratio.
Why Lenders Care About LTV
Lenders use LTV ratios as a key measure of lending risk.
A lower LTV means you’re putting in more of your own money, which gives lenders more confidence in your commitment to the property or project.
Think of it this way – if you’re buying a £2 million office building with a 40% deposit, you’re investing £800,000 of your own funds. This substantial stake shows lenders you’re serious about the investment and reduces their risk if property values change.
Property values can shift over time.
If you borrow at a lower LTV, there’s more room for market fluctuations without the loan amount exceeding the property’s worth. For example, a loan at 60% LTV could withstand a 30% drop in property values before reaching negative equity.
The LTV also affects what happens if a loan goes into default.
With a lower LTV, lenders have a better chance of recovering their money through a property sale, even in challenging market conditions. They might need to sell quickly or accept a lower price, but the margin provided by a lower LTV helps protect their position.
For commercial properties, LTV links closely to rental income and business performance.
A lower LTV often means more manageable loan payments compared to the rental income or business profits. This gives lenders confidence in your ability to keep up with repayments, even if you face temporary setbacks.
Factors Affecting Your Commercial LTV
The property’s location, condition, and potential for alternative use all factor into the equation. A modern warehouse in a prime industrial estate might attract better LTV ratios than a specialised manufacturing facility.
For owner-occupied properties, lenders examine your business performance and sector stability. Strong financials and a solid trading history can help secure better LTV ratios.
How to Improve Your Loan to Value Position
All lenders have a maximum LTV percentage that they are willing to go up to. For them the LTV figure is part of their risk management.
Need to borrow above this limit? Consider offering additional security if you need a higher LTV.
This might include other properties in your portfolio or high-value assets. Some borrowers use second charges on other properties to boost their borrowing power.
Lenders are generally willing to look at bringing in other (good) properties to boost the loan amount, and maintain their LTV position.
You could potentially have one loan secured across two properties, or two loans each secured against a single property.
Related reading: Can You Get a Bridging Loan Without a Deposit?
Why Use a Commercial Finance Broker
A broker’s market knowledge and lender relationships can make a real difference to your LTV options. We know which lenders offer the best terms for different property types and can often secure exclusive rates.
Through our relationships with over 250 lenders, we help structure deals that work for your situation. Our understanding of lender criteria means we can match you with those most likely to offer the LTV you need.
Want to discuss your commercial borrowing options? Get in touch and we’ll help you find the right finance solution. Call us on 0330 030 5050 or fill in our contact form for a quick callback.
FAQ
Commercial LTV is calculated by dividing the loan amount by the property value and multiplying by 100. For example, a £600,000 loan on a £1,000,000 property equals 60% LTV.
Bridging loans can reach up to 75-80% LTV, higher with additional security. The exact ratio depends on property type, location, and exit strategy.
Development finance typically offers up to 65% of GDV (Gross Development Value) or 80% of costs, whichever is lower. The exact ratio depends on project viability and experience.
Read more: How Does Property Development Finance Work?
100% LTV commercial finance is rare but might be possible with additional security or through combined funding solutions.
LTV relates to current property value, while GDV (Gross Development Value) considers the completed project value in development finance.
Yes, additional property security can help achieve better LTV ratios through cross-collateralisation.
