Why it matters
What Loan to Value (LTV) means for a landlord
LTV drives both how much deposit you need and the rate you pay: the gap between a 75% and a 60% buy-to-let product can be significant over a five-year fix. At remortgage, a fall in the property’s value pushes your LTV up and can move you into a worse rate band or fail the lender’s criteria entirely. Watching LTV across a portfolio is central to managing refinance risk.
Worked example
How it plays out
Dan’s flat is worth £250,000 with a £175,000 mortgage, a loan to value of 70%. If the value falls to £225,000, the loan to value rises to about 78%, which may put him in a more expensive rate band when he remortgages.
Common mistakes
Where landlords go wrong
- 01Using an optimistic valuation.
- 02Forgetting that fees added to the loan raise the loan to value.
- 03Not checking lender limits for your type of property.
What to do
A short checklist
- Check current values before remortgaging.
- Know the loan-to-value bands where rates change.
- Consider paying down to the next band.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
