Projected home equity growth
Property value minus projected secured debt
United Kingdom · GBP
Calculate Your Share of Your Property's Value
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 home equity guide
How much of your home do you own, and how much could you borrow against it?
Equity is the part of your home you own outright: its value minus everything secured against it. This calculator works that out, then shows how much room you might have to borrow more, what it would cost each month, and how your equity could grow over time.
The results are planning estimates. Borrowing room isn’t a lending offer. A lender will value your home itself and check you can afford the extra payments.
Equity is what you own, not what you can borrow
Start with your home’s current value and take off your first mortgage, any second mortgage and what you’ve drawn on other secured credit. A £500,000 home with £300,000 left on the mortgage, a £20,000 second mortgage and £10,000 drawn on a secured credit line has about £170,000 of equity.
Selling costs aren’t deducted, and a lender’s valuation may be lower than yours, so treat this as a starting point rather than cash in hand.
Why your borrowing room can be smaller than you expect
Lenders cap total secured borrowing at a percentage of your home’s value, and they usually count the full limit on any secured credit line, not just what you’ve used. In the example, if that credit line has a £30,000 limit, your committed borrowing is £350,000.
With an 80% combined LTV ceiling, total borrowing could reach £400,000, leaving about £50,000 of room. You choose the ceiling in the calculator. Lenders’ limits for raising capital vary, and are often lower than for buying a home.
Set your own equity cushion
You may want to keep more equity than a lender requires, in case prices fall or you need to move. Enter the percentage of your home’s value you want to keep. On the £500,000 home, keeping 25% (£125,000) caps your total borrowing at £375,000, leaving £25,000 of room instead of £50,000.
The calculator shows both limits side by side. Your cushion can be stricter or looser than the lender-style ceiling, depending on what you enter. Both borrowing-room figures count full credit limits. The equity-after-borrowing and proposed combined LTV figures use the amount you’ve actually drawn plus the new loan.
Ways to borrow against your home
- Further advance: extra borrowing from your current lender, usually as a separate part of the mortgage with its own rate. It can often be arranged without leaving your current deal or paying an early repayment charge.
- Second-charge mortgage: a separate loan from a different lender, secured on your home. Rates are usually higher than on a first mortgage, but your existing deal stays as it is.
- Remortgage: a new mortgage, usually with a new lender, that replaces your current one and releases extra cash. It can make sense when your deal is ending, but check the early repayment charge if it isn’t.
Compare the cost of the extra money and what each option does to your existing mortgage. The new-loan payment in this calculator assumes a standard repayment loan. It doesn’t model lifetime mortgages or other equity release, where interest rolls up. MoneyHelper explains further advances and the alternatives.
What the costs and projection include
- Borrowing costs: percentage and fixed fees are taken off the cash you receive, not added to the new loan.
- Annual projection: your first mortgage and the new loan are paid down using your inputs, while any second mortgage and drawn secured credit stay the same.
- Property growth: compounds each year from today’s value. The separate one-off value-change scenario isn’t part of that projection.
- Target date: the first year in the projection that meets your equity goal, based on your growth assumption. It isn’t a house price forecast.
Using equity to pay off other debts
Moving unsecured debts onto your home can make the monthly payment much smaller, but you often pay more in total, and the debt is now secured on your home. MoneyHelper warns that using a further advance to clear debts is rarely a good idea. Look at total interest, not just the monthly figure, and consider free debt advice first.
Think carefully before securing other debts against your home.
UK home equity calculator questions
Can I borrow more during a fixed deal without paying an early repayment charge?
Often, yes, through a further advance from your current lender, because your existing deal stays in place. A remortgage to a new lender would usually trigger the charge. Your lender will still check affordability and value the property.
Why did my lender offer less than the borrowing room shown?
Lenders often cap borrowing for raising capital at a lower LTV than for a purchase, frequently around 85%. They’ll also use their own valuation, check that you can afford the new payments and may restrict what the money is used for. Try a lower LTV ceiling and value to see a more cautious figure.
Is it worth moving credit card debt onto my mortgage?
Usually not in total cost. £15,000 repaid over five years at 20% APR costs about £397 a month and £8,800 in interest. Spread over 20 years at 6%, it falls to about £107 a month, but the interest rises to around £10,800, and the debt is secured on your home.
How do I include an early repayment charge in the result?
Enter it as a fixed borrowing cost. The calculator takes borrowing costs off the cash you’d receive, so you’ll see what’s left after the charge rather than a bigger loan.
Will home improvements add to my equity?
Only by the amount they add to the value, which is often less than they cost. If you borrow £40,000 for an extension that adds £25,000 to the value, your equity falls by £15,000. Test this with the one-off value-change scenario.
Can I use this calculator for equity release?
No. Lifetime mortgages usually have no monthly payments and interest rolls up, which this calculator doesn’t model. Equity release needs advice from a specialist equity release adviser.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.