Finance Base

You may have come across the term remortgage repayment calculator and wondered what it is. Perhaps you have also wondered what a remortgage is!

The following points may help explain:

• you may have money (sometimes called the equity) locked up in your existing property;

• the equity is calculated simply by taking a realistic market valuation of your property and deducting from that any mortgage amounts that you still owe to your original mortgage provider – the amount left over after the deduction is referred to as your equity;

• you may be able to draw down and use some of that equity – that may be to finance a project (e.g. home extensions) or for the purposes of paying off and consolidating your other debts;

• one way of doing that is called remortgaging;

• the remortgage also works simply – you typically take out a new and slightly larger mortgage against your property, pay off the original mortgage (this is technically called redeeming it) and use the difference between the redemption value and your new mortgage borrowing, for your own purposes;

• remortgage deals are available for various providers and it may be advisable to look around and compare remortgage quotes to find one that is suitable for you;

• of course, deciding how much you wish to borrow and how much it is going to cost you, may not be very easy (though it is not that difficult either!) but the good news is that the sites of some providers may provide you with an online remortgage repayment calculator;

• all you typically need to do is to enter some very basic facts and figures about your borrowing requirements and the remortgage repayment calculator will do the rest for you – including giving you an indicative cost as to how much your new borrowing is likely to cost you.