Eligibility

You must always remember that the amount of equity, i.e the remaining capital left after the mortgage has been deducted from the value of the property, is of vital importance. It is the remaining equity that a secured loan is borrowed against.

How to calculate the available equity

Most lenders calculate the available equity by taking 90% of the property's current market value and then subtracting the outstanding mortgage balance.

Example	Current market Value	�60,000
	90% of �60,000	�54,000
	Less Outstanding Mortgage	�45,000
	Equity/Maximum Loan	�9,000

In practise if you have bought your home more than a few years ago even if you took out an endowment mortgage, you will almost certainly have enough equity in your home.