How combined loan to value is worked out
The combined loan to value (CLTV) is everything secured on your home, including the new loan, divided by what the home is worth. With a £300,000 home, a £150,000 mortgage and a £30,000 secured loan the CLTV is 60%. Before the new loan it is 50%, and you would have £120,000.00 of equity left.
Loanable's example is a £250,000 home with a £150,000 mortgage and a new £50,000 loan, which is 80%. The value should be the lender's valuation, which can differ from your own estimate.
How much more you could borrow
Each lender sets a maximum CLTV and the figures quoted by brokers differ widely, so the limit is an input. At an example 80% the most you could add is £90,000.00 on the example home. KIS's FAQ uses a £500,000 home with a £200,000 mortgage and a 75% limit, which leaves £175,000.00. With an 85% limit, a £300,000 home and a £180,000 mortgage leave £75,000.00.
The results also list the most you could borrow at 70% to 90%. On the example home that is £60,000.00 at 70% and £120,000.00 at 90%. These are ready reckoner levels, not lender limits.
To work out the repayment on a loan of that size, use the secured loan calculator.
If you are over the limit
A £120,000 loan on the example home gives a CLTV of 90%. At an 80% limit it is £30,000.00 over the cap, so you would need to borrow that much less.
What this calculator leaves out
It does not check affordability, credit history or the lender's minimum and maximum loan. Lenders use their own valuation and their own limits. Your home may be repossessed if you do not keep up repayments on a loan secured on it.
For a home equity loan or HELOC in the US, open the US secured loan LTV calculator.
Inputs for the secured loan LTV calculator
Property value
What your home is worth. A lender uses its own valuation.
Mortgage balance
What you still owe on your first mortgage. Enter zero if none.
Other loans secured on the property
Any existing second charge or other secured loan.
New secured loan
The loan you want to take. Enter zero to see your current position.
Your lender's maximum combined LTV
Each lender sets its own limit. 80% is only an example, so enter your lender's limit.
CALCULATOR QUESTIONS
UK secured loan LTV calculator questions
What is combined loan to value?
All the loans secured on your home, including the new one, as a percentage of its value.
What is the maximum combined LTV for a secured loan?
It depends on the lender, and the figures quoted by brokers vary, so there is no single limit. Enter your lender's.
How much equity do I have?
Equity is the value less everything secured on it. On the example, with the new loan, you have £120,000.00.
Does the loan to value include fees?
Not here. It uses the loan you receive. Fees added to the loan raise the amount you owe, so check the lender's own calculation.
What is the difference from a mortgage LTV?
A mortgage LTV counts one loan. A secured loan sits behind your first mortgage, so the lender counts both.