Home Equity Calculator guide
Home Equity Calculator: How Much Could You Borrow?
Use our home equity calculator to work out your home equity and how much more you could borrow through a further advance, remortgage or second charge loan.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Your home equity is the part of your home you own outright: its value minus your mortgage. Our Home Equity Calculator shows how much you have and how much more you could borrow.
How to use the calculator (Home Equity Calculator)
- Enter your property value and mortgage balance.
- Enter the lender's maximum loan-to-value (LTV).
- Optionally, enter how much you want to borrow, the rate and the term.
The formulas
- Equity = property value − mortgage balance
- LTV = mortgage ÷ property value × 100
- Maximum extra borrowing = value × maximum LTV − current mortgage
A worked example
With the calculator's default settings, a £350,000 home with a £160,000 mortgage:
- Equity: £190,000 (54%)
- At an 85% maximum LTV, you could borrow up to £137,500 more
- Borrowing £30,000 over 15 years at 7.5% costs £278.10 a month
Ways to borrow against your home in the UK
| Option | How it works |
|---|---|
| Further advance | Extra borrowing from your current lender |
| Remortgage | A new, bigger mortgage with any lender |
| Second charge mortgage | A separate secured loan on top of your mortgage |
These are the UK's equivalents of a US home equity loan or HELOC.
Frequently asked questions
Is it risky?
Yes. Your home may be repossessed if you don't keep up repayments on any debt secured on it.
What's equity release?
A different product for people aged 55 or over, usually a lifetime mortgage repaid when you die or move into care. Get regulated advice first.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.