Borrowers in London have an average of almost £100,000 in potentially accessible equity, analysis from Selina Finance suggests.

The second-charge lender estimates that the average mortgaged household in the capital has £96,623 in usable equity, the highest of any UK region.

Selina calculated usable equity using an 85% LTV borrowing threshold, rather than the full difference between a property’s value and its outstanding mortgage balance.

A homeowner with a property worth £300,000 and a £180,000 mortgage would have £120,000 of total equity, for example.

However, at 85% LTV their potential extra borrowing capacity would be £75,000, depending on affordability, credit score and lender criteria.

After London, homeowners in the South East had the second highest level of equity on average at £66,276.

Across the UK, Selina estimates that the owners of around 8m mortgaged properties hold a combined £411.7bn in potentially usable equity.

Borrowers in the North West account for £34.1bn of the total, close to the combined £37.2bn estimated for Wales and Scotland.

Selina Finance vice president of credit and data Chris Hewitson says: “Property equity can look very different depending on where somebody lives, how long they’ve owned their home and how much of their mortgage they’ve already repaid.

“Our research highlighted regional differences in property wealth, with homeowners in London holding significantly more estimated usable equity on average than those in other parts of the country.

“However, it’s important to recognise that higher property values don’t automatically translate into greater financial flexibility. Homeowners may also have larger outstanding mortgages and higher living costs to consider.

“Any decision to borrow against a property should be based on affordability, the total cost of borrowing and the potential risks, rather than simply the amount of equity available.”