Free Home Equity Calculator UK (What Equity Can You Release?)

Coin stacks growing - Equity calculator UK

If you need a quick and easy to use free home equity calculator, this article includes one for you. Our free home equity calculator will help you get an idea of how much equity you have in your home. This home equity calculator will provide you with an indication of how much you may need to borrow on your next mortgage, and how much equity you’ll have for your next deposit.

A home equity calculator calculates how much equity you have in your home, which is the difference between what your home is worth less the balance owed on all secured loans, including your mortgage. But your true home equity is calculated after deducting selling costs like estate agent fees too.

Please also read this article to discover how you could save £71,475 on your next mortgage if you sell your house and rent before buying againEven I was amazed when I did the calculations! The strategies you learn in this article will not only save you money, but it will also reduce the stress of buying your next home.

How do you calculate equity in your home?

To calculate equity in your home you need to know the value of your home and the balance remaining on any secured loans, including your mortgage balance. But your true home equity calculation should also take account of selling costs like estate agent’s fees and conveyancing legal fees too.

Please note: This free home equity calculator is offered for the purpose of estimation only and is based on the numbers you’ve entered. The costs included in the calculator may not include all costs associated with selling your property, so there are no guarantees that all possible costs have been included. This property calculator does not replace professional estimates.

Can I use equity to buy another house UK?

You can use home equity to buy another house by selling your home to release the equity or by remortgage your home to release some of your equity using a loan. If you remortgage your home instead of selling it you won’t have selling costs to deduct, but you won’t be able to release all your equity.

You can use the equity in your home to buy a second property as a buy to let investment, as a holiday home or to buy a property for a member of your family to live in if they can’t afford to buy a property for themselves.

Buying a house for a member of the family often happens when a child goes to university, which is sometimes a better alternative to your children renting.

Can you use equity to pay off debt?

Using your home equity to borrow using a secured loan is one way to pay off unsecured loans and credit card debt. Interest rates are often lower on secured loans than they are on credit cards or on unsecured debt, but there is a risk of losing your home if you are not able to repay the secured debt.

Please don’t forget to read this before you leave…

Please don’t forget to also read this article to discover how you could save £71,475 on your next mortgage if you sell your house and rent before buying againAs I said earlier, even I was amazed when I did the calculations! Learn about how you will reduce the stress of moving house, whilst at the same time potentially save thousands in the process!

I hope you’ve enjoyed this article about free home equity calculator

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Also, if you have any questions, please feel free to comment below too. Please also share any of your experiences with properties you’ve bought. Alternatively, if you need more help, please feel free to contact us on our contact us page here. Or join the discussion and ask your question in the property forum.

Free Home Equity Calculator UK (What Equity Can You Release?)

Article written by Russell Bowyer who has been investing in property since purchasing his first commercial property in the 1990's for his own Chartered Accountancy business. But his first property investment project was to turn an old dilapidated restaurant into a large 5-bed home, which he purchased for £117,500 and sold for £450,000 (to see an "after" photo of the house before it was sold see here: About). Russell owns a number of investment properties, which includes houses, flats and HMO's. More recently he has turned his creative side to investing in property using lease options. His largest lease option deal to date was to acquire 12 properties worth over £2 million for just £12, which means he paid just £1 to acquire each property!

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