How to use the Remortgage Calculator
- 1 Enter your mortgage balance and the years left.
- 2 Enter your current rate, such as your lender's standard variable rate.
- 3 Enter the new rate and the deal length.
- 4 Add any fees and early repayment charge, then read the net saving.
Worked example
A homeowner with a £200,000 balance and 20 years left moves from 7.5% to 4.5%. The monthly payment falls from about £1,611 to £1,265, saving about £346 a month. After £999 of fees, the net saving over a two-year deal is about £7,302.
Features
Payment comparison
Monthly repayment on both rates.
Switching costs
Arrangement, valuation, legal fees and early repayment charges.
Break-even point
Months until the saving covers the costs.
Net saving
Total saving over the length of the new deal.
When to use it
Fixed rate ending
Compare your lender's standard variable rate with new deals.
Product transfer
Compare staying with your lender against moving.
Early switch
See if paying an early repayment charge is worth it.
Fee or no fee
Compare a low rate with a fee against a higher rate with none.
Frequently asked questions
When should I remortgage?
Start looking three to six months before your current deal ends. Many lenders let you lock in a new rate up to six months ahead.
What is a standard variable rate?
The rate your lender charges when a fixed or tracker deal ends. It is usually much higher than deal rates.
What is a product transfer?
A new deal from your existing lender. It is often quicker, with no legal work or credit check, but may not be the cheapest.
What fees are involved?
Arrangement fees, valuation fees, legal fees and sometimes a broker fee. Many remortgage deals offer free legal work and valuation.
What is an early repayment charge?
A fee for leaving a deal before it ends, often 1% to 5% of the balance. It usually makes switching early poor value.
Should I add the fee to the loan?
You can, but you will pay interest on it for the whole term. Paying it upfront is cheaper if you can.
Can I borrow more when I remortgage?
Yes, subject to affordability and loan-to-value, but borrowing more increases your payments and total interest.
Does my loan-to-value matter?
Yes. As you pay down the mortgage or house prices rise, you may move into a lower LTV band with cheaper rates.
Will remortgaging affect my credit score?
Applications leave a hard search on your credit file, but a single remortgage has only a small, temporary effect.
Should I use a mortgage broker?
Brokers can search the market and handle the application. Some charge a fee, and some are paid by the lender.
Fixed or tracker?
A fixed rate gives certainty. A tracker follows Bank Rate, so payments can go down or up.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated