Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Equity as it relates to mortgages in the UK. EquityIn housing terminology, equity is the difference in the value of the property and the amount outstanding on any loan secured against it. To calculate the equity in your home: Subtract the outstanding loan (the mortgage outstanding) from the property. This is the amount of cash you'd have in your pocket if you sold up now. If the size of the outstanding loan is greater than the market value of the property, you have negative equity - a situation which became all too commonplace in the early 1990s.
| ||