Equity guide
How much equity do I have?
Work out how much equity you may have in your home and how selling costs affect the amount available for your next move.
Quick formula
Current property value − outstanding mortgage = gross equity. For a house move, subtract selling costs as well to estimate usable equity.
Current property value − outstanding mortgage = gross equity. For a house move, subtract selling costs as well to estimate usable equity.
Gross equity vs usable equity
Gross equity is the difference between your home’s value and the mortgage balance. Usable equity is what may actually be available after the costs of selling.
Gross equity£300,000 home value − £150,000 mortgage = £150,000
Usable equity£150,000 − selling costs = the amount potentially available for your next move
What if the sale price changes?
Your equity moves pound-for-pound with the sale price before fees. If your home sells for £10,000 less than expected, your available equity is roughly £10,000 lower too.
Why this matters for your next purchase
Usable equity can fund your new deposit and some or all of your moving costs. MoveBudget combines those figures so you can see whether you still need extra cash.
Your whole move
Bring the numbers together.
Take what you’ve learned here back to MoveBudget and see what you’ll actually need in the bank.
Back to MoveBudget →