What is loan to value and why does it matter to landlords?
Loan to value (LTV) is the mortgage balance as a percentage of the property's value. A £150,000 loan on a £200,000 house is 75% LTV. Across a portfolio, LTV shows how much equity you have, what lenders will offer, and how much cash a sale would release.
Read more in our guide: How portfolio valuation works
Portfolio LTV example
| Property | Value / Loan / LTV |
|---|---|
| House A | £220,000 / £160,000 / 73% |
| House B | £180,000 / £90,000 / 50% |
| Flat C | £140,000 / £115,000 / 82% |
| Portfolio | £540,000 / £365,000 / 68% |
How to calculate it
Divide the outstanding mortgage by the current market value and multiply by 100. For a portfolio, add up all loans and all values first. The portfolio figure can hide individual properties that are highly geared, as Flat C shows in the example.
How lenders use LTV
Buy-to-let lenders usually cap new loans at 75% LTV, with the best rates at 60% or below. LTV works alongside the interest cover ratio: the lower of the two limits sets the loan. If values fall, LTV rises even if you borrow nothing more, which can limit refinance options.
LTV when you sell
When you sell, your equity is value less the loan, less sale costs, early repayment charges and tax. Remember that Capital Gains Tax is worked out on the gain, not on the equity, so a heavily geared property can produce a tax bill larger than the cash it releases.
If a property's loan exceeds its value it is in negative equity. Selling it as part of a portfolio, alongside properties with more equity, is often the simplest way to clear it.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Loan to value (LTV) is the mortgage balance as a percentage of the property's value. A £150,000 loan on a £200,000 house is 75% LTV. Across a portfolio, LTV shows how much equity you have, what lenders will offer, and how much cash a sale would release.
Many professional landlords aim for around 50% to 65% across the portfolio. That leaves headroom for falling values and better refinance rates.
Yes. Repaying capital or a rising property value both reduce LTV.
Because CGT is charged on the price minus your purchase cost and allowable costs. Money you borrowed against the property and spent elsewhere does not reduce the gain.
Thinking About Selling Your Portfolio?
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