How much equity do I have on my property?

Theresonly1

I have a HTB property which I bought nearly 5 years ago for £400K, 40% on HTB (£160K), Deposit (£60K), with the rest in Mortgage.

Ever since I have repaid capital and my mortgage is now down by £10K.
So currently in terms of my equity i own is (ignoring property value & any other factors to keep things simple):

my initial deposit + repaid mortgage (£70K) - 17.5%

but if I repaid my HTB - then would my equity be now at 57.5% ?
(70K + 160K)/£400K.  

jonners666

You can only calculate this if you know the sale price / value, surely? 

Theresonly1

jonners666 said:

You can only calculate this if you know the sale price / value, surely? 

As i said in my post; assuming the value is the same as I bought 5 years ago. I know it's unrealistic but purely for simplicity.
Maybe I haven't made that clear.

user1977

Equity is the current value minus the current amounts of the secured loans. So if the only change is that you've paid off £10k of the mortgage, your equity is the same as it was, plus £10k.

HopeAndDriftWood

It's not a very accurate way of working out equity if you don't have an up-to-date property valuation... 

But it sounds like when you bought, you owned 15%, HTB owned 40%, and you mortgaged 45%. So you had 15% equity.

If you've now paid back £10k from the mortgage; you now own 17.5%, and 42.5% is mortgaged.

If you paid off the HTB, you'd own 57.5%, and 42.5% would be mortgaged.

But you'd want an up-to-date valuation. As would HTB, I believe.

Theresonly1

HopeAndDriftWood said:

It's not a very accurate way of working out equity if you don't have an up-to-date property valuation... 

..

If you've now paid back £10k from the mortgage; you now own 17.5%, and 42.5% is mortgaged.

If you paid off the HTB, you'd own 57.5%, and 42.5% would be mortgaged.

Thanks, yeah i was more after the percentage breakdown