How Much Equity Do I Have In My Home?

If you’ve been in North London for a while – maybe tucked into a Victorian terrace in Stroud Green or a split-level flat overlooking Finsbury Park – you’ve probably heard people throw around the phrase “home equity” over their Eggs Benedict. It sounds faintly financial, slightly intimidating, and like something only bankers or Monopoly champions need to know. But actually, home equity is nothing more than the value you already own in your own home. And understanding it can change the way you think about your property, your mortgage, and your future.

Equity: Not Just a Fancy Word for “Mine”

At its simplest, home equity is just the difference between what your home could fetch on the open market and what you still owe the bank. Imagine your house as a cake (bear with me). The part you’ve already paid off – that’s your slice. The bit the bank still technically owns – that’s theirs. Your equity is the sponge you get to eat today, not the portion you’ve promised to share later.

The Quick Maths Moment

Yes, there’s a formula – don’t panic, it’s friendlier than it looks:

Home Equity = Current Market Value of Home − Outstanding Mortgage (and other secured debts)

So, say your Holloway flat is valued at £600,000. You still owe £200,000 on the mortgage. Your equity is:

£600,000 – £200,000 = £400,000.

That’s four hundred thousand pounds that’s technically “yours.” It’s just tied up in bricks, mortar, and maybe the dodgy loft conversion from the 90s.

Why Should You Care?

Because once you know your equity, you can start making shrewder choices. It can influence whether you remortgage, how you plan your next move up (or down) the property ladder, and what kind of financial cushion you’ve actually built without even noticing. More equity usually means better mortgage rates, more flexibility if you want to release funds, and more confidence if you’re eyeing a bigger home or even downsizing to free up cash. Negative equity (where you owe more than your home’s worth) does the opposite, of course – but that’s another story.

What Can You Actually Do With It?

Equity isn’t just a number to brag about at dinner parties. People use it for all sorts of real-world things: remortgaging to get better interest rates, funding major renovations (yes, even that dream kitchen island), consolidating debts, or – if you’re later in life – considering equity release.

Equity release can sound mysterious, but it’s really just borrowing against the value of your home. One popular version is a “lifetime mortgage”: you get a lump sum or regular payments, and the loan (plus interest) is repaid when you die or move into long-term care. The catch? Your inheritance shrinks, because more of your property’s value will go back to the lender.

A Word of Caution (Or: Don’t Eat the Whole Cake Just Yet)

Using your equity isn’t without trade-offs. If you’re releasing money, interest can pile up. If you’re remortgaging, you’ll want to keep an eye on fees. And while North London house prices have historically been kind to homeowners, property values can dip as well as climb – which can erode your equity if the timing’s unlucky.

How Do You Find Out Your Number?

First step: get a realistic sense of your home’s current market value. Online estimates can be fun, but nothing beats a proper valuation – ideally from someone who actually knows the difference between Green Lanes and Crouch End Broadway. Next, check your mortgage balance. Subtract one from the other. Voilà: your equity figure.

If you want to get more precise, there are online calculators. Or better still, sit down with a local estate agent (yes, that’s where we come in). We can give you a grounded valuation, explain how much equity you’ve got, and chat about what it could mean for your plans.

Final Thought

Think of home equity as your hidden treasure chest. You may not be able to open it fully until you sell up or downsize, but knowing it’s there – and how it works – gives you a powerful sense of control. It’s not just a line on a spreadsheet; it’s the part of your home that’s really, truly yours.

And if you fancy finding out what your North London property could be worth in today’s market? Well, you know who to call. We’ll even bring the cake.

Book your free, no obligation, property valuation by clicking here

Contact us:

mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)

katrina@daviesdavies.co.uk – Director of Property & Block Management (contact for property and block management)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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