Repayment mortgages - how much equity will I have?

inglesito

As a first time buyer about to complete, I've got my head around most of the terminology and procedures regarding mortgages. However, one question remains - if I remortgage before the 25 years is up (which I surely will when the banks ease their lending criteria a bit), how much equity will I have amassed?

Given the repayment table on the mortgage illustration, if I left after 2 full years, I would have made payments totalling £8882 of a £51250 mortgage. Of this £1568 would have gone towards capital and £7314 in interest (gulp!). Does this mean when I remortgage I'd still have a debt of just under £50000? As over the full term I should pay £2.03 for every £1 of the loan, so do they recalculate on this basis when you leave? If so, I would have over £4000 in equity, giving me access to better deals. Otherwise, it seems like a huge rip-off.

Could anyone put my mind at ease?