Stamp Duty CalculatorHome Equity Calculator
See your current equity, equity as % of value, growth since purchase, and the maximum you could release via a remortgage at the 85% LTV mainstream cap.
Your property
What equity is and why it matters
Equity is the portion of the property you actually own: current value minus the mortgage balance. On a £400,000 home with £220,000 outstanding, you have £180,000 of equity (45%). Equity grows two ways — monthly capital repayments reduce the mortgage, and any property appreciation increases the value side.
At remortgage, equity sets your available LTV band. More equity means a lower LTV, which unlocks cheaper rate tiers. See the LTV calculator for current band ranges.
Releasing equity — the realistic picture
You can access some of your equity by remortgaging to a higher LTV (up to the mainstream 85% cap, 90% with some lenders) and taking the extra as cash. On the example above, remortgaging to 85% LTV would release £400,000 × 85% − £220,000 = £120,000. The downsides: your new monthly payment rises, you pay more interest over the term, and the lender will stress-test your income for the larger loan. Equity release products (lifetime mortgages) are a separate, specialist product for over-55s and are not covered here.
Frequently asked questions
How is equity different from LTV?
They are two sides of the same coin. Equity % + LTV % = 100%. 45% equity means 55% LTV.
Can I release equity to help a family member buy?
Yes, this is a common use case for a gifted deposit. Lenders will stress-test your new larger loan against your income regardless of why you want it.
Does releasing equity trigger CGT?
No — borrowing against your own home is not a disposal, so no capital gains tax applies. CGT only applies when you sell a non-main residence.
Related calculators
Last reviewed: 1 October 2026.