How equity borrowing is limited
Lenders limit the total secured on your home, including your existing mortgage, to a percentage of its value, the loan-to-value (LTV). The extra you can borrow is that limit minus what you already owe.
Limits vary by lender and loan type, and lenders also check you can afford the repayments.
Worked example
A £300,000 home with £150,000 left on the mortgage has £150,000 of equity. At a 75% LTV limit, you could borrow up to about £75,000 more; at 85%, about £105,000.
Before you borrow
Because the loan is secured on your home, you could lose it if you cannot keep up repayments.
A lender will also value the property and check that you can afford the payments, so the amount offered may be lower.
How the result is worked out
The extra you could borrow is the home value multiplied by the maximum loan-to-value you enter, minus any borrowing already secured on it. Your equity is the value minus that existing borrowing.
Try different loan-to-value limits to see how a lender's cap changes what is left to borrow.
Inputs for the how much equity loan calculator
Home value
What your home is worth now. A lender will value it.
Existing borrowing secured on it
Your outstanding mortgage and any other secured loans.
Maximum loan-to-value
The lender's limit on total secured borrowing as a share of the value.
CALCULATOR QUESTIONS
Home equity borrowing calculator questions
How much equity can I borrow?
Up to the lender's loan-to-value limit minus what you already owe. Enter your figures above.
What is loan-to-value?
Your total secured borrowing as a percentage of your home's value.
Do I need to be able to afford it?
Yes. Lenders also check that you can afford the repayments.
What's the risk?
Missing payments on a loan secured on your home can lead to repossession, so borrow only what you can repay.