Home Equity Calculator
Find out how much equity you have built up in your home — and how much you could release or use as a deposit to move.
How Home Equity Calculator works
What is home equity?
Equity = Property Value − Outstanding Mortgage. It represents your ownership stake in the property. As you repay your mortgage and/or the property value rises, your equity grows.
How to use equity
Equity can be accessed through remortgaging (release equity as cash), further advance from your existing lender, or a second charge mortgage. It can be used as a deposit on a second property, home improvements, or other large expenditure.
Equity release for older borrowers
Equity release products (lifetime mortgages, home reversion plans) allow homeowners aged 55+ to access equity without monthly repayments. Interest rolls up and is repaid on death or care home entry. These are regulated products — always seek independent financial advice.
Capital gains on your main home
Any profit on the sale of your main residence is typically exempt from Capital Gains Tax under Private Residence Relief. CGT may apply to portions of the gain relating to periods of non-occupation or buy-to-let use.
Frequently asked questions
How do I calculate my home equity?
Equity = Current Property Value − Outstanding Mortgage Balance. Example: a £350,000 home with a £200,000 mortgage has £150,000 equity (42.9%).
How can I increase my home equity?
Make mortgage overpayments (reduces balance), wait for property value to rise, or add value through improvements. Avoid equity release unless necessary, as it compounds interest.
Can I access my equity without selling?
Yes. Options include remortgaging to a higher loan (releasing equity as cash), a further advance from your lender, or a second charge loan. Each has different rates and eligibility requirements.
How much equity do I need to remortgage?
Most lenders require at least 5% equity (95% LTV) to remortgage. The best remortgage deals are available at 60–75% LTV. If you have under 20% equity (above 80% LTV), your options are more limited and rates higher.
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