To find out how much equity you hold in your property, you will first need to know how much your house is actually worth today. You can find this out in a number of ways.
Get an accurate property valuation
The first thing to do is to have a look at how much other properties in your street have sold for recently. It's important to compare the quality and size of the house that have sold with your own to get a ball-park figure. There's no use comparing the price of a 5 bed home if you live in a 2 up 2 down!
A good way to do this is to use the internet to get a comparison. Rightmove has a great property price comparison service for properties recently sold in your area.
If you want to get a more accurate valuation, get an estate agent to come round and value your property. This may come at a cost, but they are often in the best position to gauge how much your home will be worth in the current market.
Another option for a quick and easy valuation is to search the Land Registry house price index for the average house price in your area.
Find out how much your mortgage balance
Once you know how much your house is worth, you'll need to subtract the amount of outstanding mortgage you have against the property, plus any other loans you have secured against your home.
If you are not sure how much of your mortgage is outstanding, this is easy to find on your latest mortgage statement from your lender.
If you can't find your statement you can get an up to date figure by either looking at your mortgage account online if you can, or by simply giving your lender a call and asking for a balance update.
If you have any other loans or debt secured against your home, you will need to look through your paperwork to get the value of them. Again, you can also contact your loan company to find out how much of the debt is outstanding.
Work out how much equity you have
Once you've got all the figures you need you can work out how much equity you have in your property with a quick bit of maths.
Here's an example: You find out your property is worth £200,000, you have an outstanding mortgage balance of £160,000, and a secured loan of £15,000. This is the sum you'll need:
£200,000 - (£160,000 + £15,000) = £25,000
So, based on these figures, you'll have calculated that you have £25,000 of equity in your property.