The equity in your home is the difference between its current market value and the amount you still owe on your mortgage.

As you repay your mortgage or your property increases in value, the amount of equity you hold can grow over time.

Understanding how much equity you have in your home can be useful if you are thinking about remortgaging, moving home or accessing some of the value built up in your property.

How Do You Calculate the Equity in Your Home?

Calculating the equity in your home is relatively straightforward.

Take the current value of your property and subtract the amount you still owe on your mortgage.

For example, if your home in Harrogate is worth £300,000 and you have £180,000 remaining on your mortgage, you would have around £120,000 of equity in the property.

The figure can change over time as you repay your mortgage and the value of your home rises or falls. You can also use our home equity calculator to get an idea of how much equity you currently have in your home.

How Can You Estimate the Current Value of Your Home?

To work out your home equity, you first need a reasonable idea of what your property is currently worth.

Recent selling prices for similar homes in your area can give you a useful starting point, while online property valuation tools can provide a rough estimate.

If you apply for a mortgage, the lender will normally arrange its own valuation and may reach a different figure.

Using a realistic property value will give you a more accurate idea of how much equity you have built up over time.

What Can Increase the Equity in Your Home?

Your home equity can increase as you repay the balance of your mortgage, as each repayment can reduce the amount you owe.

An increase in your property’s value can also build your equity, particularly if house prices in your area have risen since you bought it.

Certain home improvements may add value too, although the amount they add will depend on the work completed and the property itself.

Over time, a combination of repaying your mortgage and changes in property value can leave you with a larger share of your home owned outright.

Can the Equity in Your Home Decrease?

The amount of equity you have can decrease if your property falls in value or the amount you owe against it increases.

For example, a drop in local house prices could reduce the difference between your property value and outstanding mortgage balance.

Borrowing more against your home can also reduce your equity, depending on how much you borrow.

This is why your home equity can change throughout the time you own the property.

Why Does Home Equity Matter When Remortgaging?

The amount of equity you have in your property can affect the mortgage options available when you remortgage.

Having more equity generally means you are borrowing a smaller amount compared with the value of your home, which could give you access to a wider range of mortgage products and potentially better rates.

Some homeowners also remortgage to release part of the equity they have built up, provided they meet the lender’s affordability and eligibility requirements.

Our mortgage advisors in Harrogate can look at your current mortgage and the equity in your property to explain the remortgage options available.

Can You Access Equity Without Selling Your Home?

You do not necessarily need to sell your property to access some of the equity you have built up.

Depending on your circumstances, remortgaging and borrowing more against your home could allow you to release part of its value as money.

Homeowners may consider this for reasons such as home improvements or other larger expenses.

The amount you could release will depend on factors such as your property value, existing mortgage balance, income and affordability.

How Much Equity Do I Have in My Home?

The amount of equity you have will depend on what your property is worth today and how much you still owe on your mortgage.

Even if you have owned your home for several years, the figure may have changed as you have made repayments and property prices have moved.

Checking your latest mortgage balance alongside a realistic property valuation can give you a clearer idea of where you stand.

Our home equity calculator can also provide a quick estimate before you start looking at your mortgage options.

Date Last Edited: August 28, 2026