The term equity is used to describe the difference in the value of the property and the amount outstanding on any mortgage or borrowing secured against it. In order to calculate the current equity in your home all you need to do is subtract the amount of the outstanding mortgage or any other borrowings secured against the property against the current value of the property and the equity is the amount that is left. If your mortgage is more than the value of the house this is described as negative equity. This problem can occur when there is a housing boom and properties increase in value over a relatively short period of time and then recession hits and house prices tumble leaving you owing more than the value of your property. This situation occurred at the start of the 1990's and left many people with serious financial problems where interest rates rose sharply and they couldn't afford the monthly payments nor could they sell their property for more than they owed on it. This website has been designed to provide our users with access to all of the major lenders offering all types and variations of loan within the UK. Please note we are an advertising medium and do not therefore endorse products or give any financial advice relating to the products and services offered by the advertisers on this site.