Calculate loan-to-value and combined LTV
Enter the valuation and purchase price, the loan, any other charges on the property and your collateral limits. See LTV, combined LTV, the largest loan each limit allows and which limit binds, then see what a price fall would leave.
Largest loan allowed
The €215,000 loan is 86.0% of the value, which is over the loan-to-value limit. The limits allow up to €212,500. After a 15% fall in the price, all debt secured on the property would be 105.9% of it.
Debt and equity
The bar shows the value used for the loan calculation and what is secured on it. The dashed lines mark both limits, and the mark shows the value after the price falls.
Loan figures
| Value used | €250,000 |
| LTV | 86.0% |
| Combined LTV | 90.0% |
| Equity left | €25,000 |
| Loan allowed by LTV | €212,500 |
| Loan allowed by combined LTV | €215,000 |
| Value after a 15% fall | €212,500 |
| Combined LTV after fall | 105.9% |
| Largest loan allowed | €212,500 |
This copies into a decision table with loan-to-value and combined loan-to-value as conditions and the decision as the result.
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Use these limits in the credit decision alongside affordability. Test each change on past applications. Start free
Show formulas
Value used = min(Valuation, Purchase price) LTV = Loan amount ÷ Value used Combined LTV = (Loan amount + Other secured charges) ÷ Value used Loan allowed by LTV = Maximum LTV × Value used Loan allowed by combined LTV = Maximum combined LTV × Value used − Other secured charges Largest loan allowed = Smaller allowed loan, never below zero Combined LTV after fall = (Loan amount + Other secured charges) ÷ (Value used × (1 − Price-fall stress))
These limits are your own policy. The calculation uses one valuation and excludes fees and capitalised costs.
Calculate LTV and combined LTV
The calculation compares the loan with the value used for the property. Combined LTV also counts other charges secured on it.
Each collateral limit sets a ceiling for the loan, and the lower ceiling is the largest loan allowed. The stressed combined LTV shows how the secured debt compares with the property value after a price fall.
LTV questions
How do I calculate loan-to-value from a valuation?
Divide the loan by the value used for the calculation. This is the lower of the valuation and purchase price, or the valuation alone for a remortgage or equity loan.
Does combined LTV include other secured charges?
Yes. Combined LTV adds other charges secured on the property to the loan, then divides by the value used for the calculation.
How do I work out equity after secured charges?
Subtract the loan and other charges from the value used for the calculation. The result is the equity left.
How does a price fall affect combined LTV?
The tool reduces the value used for the calculation by the selected price fall. It then compares the loan and other secured charges with that stressed value.
How much can I lend under a maximum LTV?
Multiply the value used for the calculation by the maximum LTV to find the loan ceiling under that limit. The combined LTV limit can set a lower ceiling after other secured charges are included.