Homeowners have more value in their homes
| Average loan-to-value ratios have fallen below 60%, showing homeowners hold more equity nowadays | Nearly half of private homes now carry no mortgage, reflecting growing financial security for owners | Increasing equity provides opportunities for borrowing, remortgaging, or planning next steps in homeownership |
The average loan-to-value (LTV) ratio on mortgaged homes across the UK has fallen below 60%, research1 has revealed, while a growing number of homes carry no mortgage at all.
In just over a decade, the average LTV ratio has fallen from 70% down to 59%. Since 2008, an estimated £677bn of housing equity has built up across the UK housing stock, through mortgage repayments and high property values, and only 42% of private homes now carry any mortgage.
Kate Davies, Executive Director of IMLA, said, “The market has demonstrated resilience, but we cannot ignore the access gap. There is a generation of aspiring homeowners who will need higher loan-to-value options, creative solutions and flexible products to take their first step. Those products already exist and innovation is continuing, but standards must remain robust. Higher-LTV lending must sit within disciplined affordability testing to ensure borrowing is sustainable over the long term.”
1IMLA 2026
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
Stay informed with the latest
Receive relevant financial news and updates directly to your inbox.
