Understanding how equity works can be helpful when you’re looking to remortgage, release funds, or make longer-term plans around your home.

Equity is essentially the part of your home that you own outright, the difference between your property’s current market value and the amount left on your mortgage.

The more your home has risen in value, or the more you’ve paid off your loan, the more equity you’re likely to have.

Working Out the Equity in Your Property

To calculate the equity in your home, you’ll need two things: an up-to-date valuation and your remaining mortgage balance. Subtract the outstanding mortgage from the property’s current value, and the result is your equity.

For example, if your home is worth £300,000 and your mortgage balance is £150,000, your equity would be £150,000. This figure can vary depending on how much your home is worth today and how far along you are in your mortgage term.

Many homeowners in Manchester check their equity when they’re thinking about switching deals, borrowing more, or exploring options for later life.

If you’re over 55, your equity could be used for a lifetime mortgage in Manchester or as part of your retirement planning.

Why Equity Matters When You Remortgage

Your equity plays a big role in remortgage decisions. Lenders use it to assess your loan-to-value (LTV) ratio, which affects the interest rates and products you may qualify for.

More equity usually means a lower LTV, which can open up better deals.

This is especially relevant for customers looking to remortgage in later life. If you’ve paid off a large chunk of your mortgage already, your equity could help unlock more flexible options, from new repayment terms to interest-only deals or retirement mortgage options in Manchester.

Can You Release Equity Without Moving?

Yes, it’s possible to release equity without selling your home. This is where equity release products like lifetime mortgages come into the picture.

These are designed for homeowners aged 55 and over who want to access some of their equity as a tax-free lump sum, without the need for monthly repayments.

We also offer tailored equity release advice in Manchester to help you explore this option in full and to understand how it compares with traditional remortgaging or downsizing.

Date Last Edited: June 4, 2025