UK Home Equity Calculator
Equity = property value − remaining mortgage. Both grow over time — HPI adds value, repayments reduce loan.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
Use the LTV calculator with current property value and remaining mortgage. Equity = property − loan.
Worked examples
£250k house bought 5 years ago, now £300k (4% HPI). Mortgage £200k, now £180k. Equity = £120k (40% of value).
Original LTV 90%; now ~60%. You'd qualify for the best mortgage rates on remortgage.
Sources:
HM Land Registry UK House Price Index
· retrieved 2026-05-12.
Frequently asked questions
How does equity affect remortgage rates?
Crossing into a lower LTV band (e.g. 75% to 60%) typically saves 0.2-0.5% on the rate at remortgage time.
Should I overpay?
If your rate is above ~4-5%: usually yes (guaranteed return). Below: investing the same money might do better, but loses the certainty.