Remortgaging
Crossing an LTV boundary can save you more than switching lenders does
Two people can hold the same mortgage balance and be offered very different rates, because one of them sits just above a loan-to-value boundary and the other sits just below it. The gap between bands is usually worth more than the gap between the best and worst lender at the same band. Here's how the boundaries actually work, and what crossing one is worth in real numbers.
Rates move in steps, not a slope
Lenders don't quote a rate for every loan-to-value percentage. They set a handful of fixed bands, commonly 60%, 75%, 85%, 90% and 95%, and price your whole loan at whichever band you fall into. A borrower at 76% LTV pays the 85% band rate even though they're only a point above the 75% cut-off. Move to 74% and the whole loan reprices at the 75% band, not just the last two percentage points of it. That's why a small change in your balance or your property's value can be worth far more than the number suggests.
Where the boundaries actually bite
As of September 2026, best-buy five-year fixed rates run from roughly 4.3–4.5% at 60% LTV up to around 4.8–4.9% at 90% LTV, a spread of well over half a percentage point across the ladder. The jump from 90% to 85% is usually the sharpest single step, because 90%+ lending carries the most risk for a lender and gets priced accordingly. The move from 75% to 60% tends to be smaller in comparison, since both bands already count as low risk. If you're anywhere near a boundary, it's worth checking which side of it your current valuation actually places you, rather than assuming your LTV is whatever it was when you last took out a deal.
A worked example
Say your outstanding balance is £220,000. Your property was valued at £275,000 when you last remortgaged, putting you at 80% LTV, in the 85% band. Three years of payments and a modest rise in local property prices now put your home at £295,000, taking your balance-to-value down to 74.6%, just inside the 75% band. Moving from an 85%-band five-year fix at roughly 4.9% to a 75%-band rate around 4.65% cuts your monthly interest on £220,000 over 25 years by about £30 a month, close to £1,800 across the five-year deal. Push the same balance down to 68% LTV, comfortably inside the 75% band with room to spare, and the saving against the 85% band widens further, though the next full step down to the 60% band typically buys less than the 90%-to-75% move did.
Why your LTV can shift without you doing anything
Two things move your loan-to-value between deals: your balance falling as you pay down the mortgage, and your property's value changing. The first is predictable and works in your favour every month. The second is not something you control, and it cuts both ways. A local price rise since your last valuation can quietly push you into a better band; a flat or falling market can leave you exactly where you started, or push you the wrong way if house prices in your area have dipped. Overpaying while your deal runs is the one lever you control directly, and even a modest overpayment plan can be enough to nudge a balance from just above a boundary to just below it by the time you remortgage.
Getting the valuation lenders will actually use
The LTV a lender prices against is based on their own valuation at application, not your guess at current market value or a Zoopla estimate. A conservative valuer can leave you just the wrong side of a boundary you thought you'd cleared. Before applying, it's worth checking recent sold prices for comparable properties on your street rather than asking prices, since that's closer to what a surveyor will actually use. If you're within a percentage point or two of a boundary, a small overpayment before you apply, timed against your allowance and reset date, can be the difference between two bands.
If you're just on the wrong side
If your balance and valuation land you just above a boundary, three things are worth checking before you accept a deal: whether a lump-sum overpayment in the weeks before application would close the gap, whether your current lender's own valuation model is more conservative than a broker's estimate of comparable sales, and whether the deal at your current band is still worth locking now rather than waiting for the next valuation cycle. None of that changes if your fix is ending soon and you haven't looked at your options yet — the LTV band question sits underneath whichever of those options you pick.
Frequently asked questions
How do I find out which LTV band I'm currently in?
Divide your outstanding mortgage balance by your property's current value, not the price you paid or its value when you last remortgaged. If you're unsure of the current value, check recent sold prices for comparable properties nearby rather than asking prices or automated estimates, since that's closer to what a lender's valuer will use when you apply.
Is it worth remortgaging early just to chase a lower LTV band?
Only if the saving from the lower band outweighs any early repayment charge on your current deal. Check your ERC schedule first. If your existing fix still has more than a year left and carries a meaningful charge, it's usually cheaper to wait for the deal to end naturally, or to use your lender's early-lock window a few months before that date once you know your updated LTV.
Do all lenders use the same LTV bands?
The rough shape (60%, 75%, 85%, 90%, 95%) is common across most mainstream lenders, but the exact cut-offs and the size of the rate step at each one vary by lender and by product. Some lenders also offer intermediate bands like 80%. A broker with access to more than one lender's rate sheet can check whether a slightly different band structure elsewhere works better for your specific balance and valuation.
Know which band you're in before your deal ends
WatchMyMortgage tracks your deal end date and flags when it's worth checking your loan-to-value again. Start your free timeline to see where you stand.
Examples are illustrative and rounded. Your own mortgage offer and lender confirm your actual figures and dates. This is information, not financial advice. For advice on your circumstances, speak to a mortgage adviser regulated by the FCA.