Projected home equity growth
Property value minus projected secured debt
United Kingdom · GBP
UK home equity calculator.
Estimate how much of your home you own and explore how much equity may remain available under a selected borrowing limit.
Target-equity timeline
Estimated from the projection assumptions above
Selected target—
Current projected starting point—
Estimated target date—
Gap to target—
Home-value sensitivity
Estimated equity after proposed borrowing and planned principal paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
|---|
Year-by-year equity projection
Includes estimated first-mortgage repayments and the proposed second-charge loan
| Year | Property value | First mortgage | Second-charge loan | Total secured debt | Home equity | Combined LTV |
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Planning estimate only—not a valuation, mortgage offer or recommendation. A lender may use a different property value, combined-LTV method, affordability assessment, rate and fee structure. Your home may be repossessed if you do not keep up repayments on borrowing secured against it.
UK homeowner guide
How much equity do you have in your home?
Home equity is the estimated current property value minus mortgages and other borrowing secured against the property. Equity can rise as the mortgage balance falls or the property value increases, and it can fall when prices decline or more debt is secured against the home.
This calculator estimates total equity, equity percentage, first-mortgage LTV and combined LTV. It also models a proposed further advance or second-charge mortgage, but it does not decide whether that borrowing is suitable or affordable.
Total equity and potentially borrowable equity
Total equity is an ownership calculation. Potential borrowing room applies your selected maximum combined LTV to the property value and subtracts existing secured commitments. A lender may use a different valuation and impose a lower limit after checking income, expenditure, credit history, age, loan purpose and property.
The personal equity buffer provides a separate, more cautious limit. It lets you preserve a chosen percentage of the property value rather than assuming the maximum lender limit is an appropriate target.
Further advance
A further advance is additional borrowing from the existing mortgage lender. It can have a different rate and term from the original mortgage and normally requires affordability checks.
Second-charge mortgage
A second-charge mortgage is secured against the home behind the first mortgage. Rates and fees can be higher, and both secured loans remain payable.
Remortgaging to release equity
Replacing the main mortgage with a larger loan can release cash, but product fees, valuation costs and early-repayment charges can offset the benefit.
Equity release
Lifetime mortgages and other later-life equity-release products work differently from ordinary repayment borrowing. This calculator does not model rolled-up interest, inheritance protection or no-negative-equity guarantees.
Combined loan-to-value and property valuation
Combined LTV compares all borrowing secured against the property with its value. A £300,000 first mortgage plus £40,000 proposed borrowing on a £500,000 home produces 68% combined LTV. The accepted property value matters: a lender may require an automated valuation, physical valuation or surveyor’s report.
Use the value-sensitivity table to test how a price fall could reduce equity and increase combined LTV before taking additional secured borrowing.
Costs and risks of borrowing against home equity
Adding secured debt may reduce the equity available for a future move and increase total interest. A lower monthly payment can still cost more when debt is repaid over a longer term. Compare the total repayment, fees and alternative options rather than focusing only on monthly cost.
MoneyHelper explains the differences between a further advance, remortgage and second mortgage. The FCA also highlights the importance of realistic affordability assessments, fees and total-cost comparisons for second-charge mortgages.
UK home equity questions
How do I calculate equity in my house?
Subtract the balances of the first mortgage and any other loans secured against the property from its current estimated value.
Can I borrow all the equity in my home?
Usually not. Lenders normally require equity to remain and apply valuation, combined-LTV, affordability, credit and property rules. Keeping a personal buffer can also reduce risk.
What is a second-charge mortgage?
It is an additional mortgage secured against the property while the original first mortgage remains in place. Failure to keep up repayments can put the home at risk.
Is releasing equity the same as equity release?
No. Borrowing more through a further advance, remortgage or second charge is not the same as a regulated later-life equity-release product such as a lifetime mortgage.
Can home equity become negative?
Yes. Negative equity occurs when the total secured balances exceed the property’s current value.