Use this remortgage calculator to see how much a new mortgage deal could save you each month and over the whole deal, after fees. It is most useful when your fixed rate is about to end and you are deciding whether to switch.
Your remortgage saving
- Saving per month
- –
- New monthly payment
- –
- Current monthly payment
- –
- Saving over the deal (after fees)
- –
In the example, £180,000 over 20 years costs £1,395.54 a month at a 7% standard variable rate. A new deal at 4.5% costs £1,138.77, saving £256.77 a month. After £999 of fees, that is £5,163 saved over a 2-year deal.
How to use the remortgage calculator
- Enter your balance and years left. Your latest mortgage statement shows both.
- Enter your current rate. If your fixed deal is ending, use the standard variable rate (SVR) you will move onto. Your lender tells you this in the letter before your deal ends.
- Enter the new deal’s rate and fees. Add up the arrangement fee, any valuation or legal fees, and any early repayment charge on your current deal.
- Pick the length of the new deal to see the saving over that period.
When should you remortgage?
A remortgage calculator is most useful a few months before your deal ends. Most people remortgage when a fixed or tracker deal ends. If you do nothing, your lender moves you onto its standard variable rate, which is usually much higher. You can usually lock in a new deal up to six months before your current one ends, so you are not caught out.
Other good reasons to remortgage include:
- your home has gone up in value, so your loan-to-value (LTV) has dropped into a cheaper band
- you want to borrow more for home improvements
- you want to change from interest-only to repayment, or change your term
- you are on a high rate and the early repayment charge is small enough to be worth paying
Remortgage calculator: payments at different rates
This table shows the monthly payment on £180,000 over 20 years at different rates. Compare your current rate with a new one to see the difference:
| Rate | Monthly payment | Yearly payment |
|---|---|---|
| 3.5% | £1,043.93 | £12,527 |
| 4% | £1,090.76 | £13,089 |
| 4.5% | £1,138.77 | £13,665 |
| 5% | £1,187.92 | £14,255 |
| 5.5% | £1,238.20 | £14,858 |
| 6% | £1,289.58 | £15,475 |
| 7% | £1,395.54 | £16,746 |
| 8% | £1,505.59 | £18,067 |
Do the fees cancel out the saving?
A remortgage calculator UK borrowers can trust has to include fees. A deal with a low rate and a high fee can cost more than a slightly higher rate with no fee, especially on a smaller mortgage. The remortgage calculator shows how many months it takes for the monthly saving to pay back the fees.
For example, on £150,000 over 25 years, a 2-year deal at 4.2% with a £1,499 fee costs £20,901 over two years, including the fee. A 4.5% deal with no fee costs £20,010. Here the fee-free deal is cheaper even though its rate is higher.
You can often add the fee to your mortgage instead of paying upfront, but you will then pay interest on it for the rest of the term.
Remortgage calculator UK: costs to include
| Cost | Typical range | Notes |
|---|---|---|
| Arrangement or product fee | £0 to £1,999 | Sometimes a percentage of the loan |
| Valuation fee | Often free on a remortgage | Some lenders charge for larger homes |
| Legal fees | Often free on a remortgage | Lenders often offer free legal work |
| Early repayment charge | Often 1% to 5% of the balance | Only if you leave a deal early |
| Broker fee | £0 to about £500 | Many brokers are paid by the lender instead |
How your loan-to-value affects your new rate
Lenders price deals in loan-to-value (LTV) bands, such as 60%, 75%, 85% and 90%. Your LTV is your mortgage balance divided by your home’s value. The lower it is, the cheaper the rates you can usually get.
For example, if you owe £180,000 on a home worth £300,000, your LTV is 60%. If you owe £230,000 on the same home, it is about 77%, so you fall into the 85% band and may pay a higher rate. Paying off a few thousand pounds before you remortgage can sometimes move you into a cheaper band, and the remortgage calculator helps you see what that is worth.
Remortgaging to borrow more
You can ask to borrow extra when you remortgage, for example for home improvements. The lender will check your income and spending again, and your LTV will rise. Use the remortgage calculator with the new, higher balance to see your new monthly payment before you apply.
Borrowing more on your mortgage usually means a lower rate than a personal loan, but you repay it over many more years, so the total interest can be higher.
What you need to remortgage
- your latest mortgage statement and the letter about your deal ending
- proof of identity and address
- recent payslips and bank statements, or two years of accounts or tax returns if you are self-employed
- details of any other debts and regular outgoings
Product transfer or full remortgage?
You have two main options when your deal ends:
- Product transfer: you stay with your current lender and pick one of its new deals. It is quick, there is usually no new affordability check, and fees are often lower.
- Remortgage to a new lender: you can shop the whole market and may find a better rate, but there is a new application and credit check.
Run both options through the remortgage calculator to compare. A broker can search the whole market for you, and MoneyHelper has a checklist for comparing deals.
Use the switch to clear your mortgage sooner
If a new deal lowers your payment, you could keep paying what you pay now and treat the difference as an overpayment. Our mortgage overpayment calculator shows how much time and interest that saves. If you want lower payments by paying only the interest, compare the options with the interest only mortgage calculator.
Frequently asked questions
How much could I save by remortgaging?
It depends on the gap between your current rate and the new one, your balance and the fees. On £180,000 over 20 years, moving from 7% to 4.5% saves about £257 a month before fees.
How early can I remortgage?
Most lenders let you secure a new deal three to six months before your current one ends, and the new rate starts when the old deal finishes.
Will remortgaging affect my credit score?
A full remortgage with a new lender involves a credit check, which shows on your file. A product transfer with your current lender usually does not.
Is it worth paying an early repayment charge to switch?
Only if the saving over the rest of the deal is bigger than the charge plus any new fees. Enter the charge in the fees box and the remortgage calculator shows whether it pays off.
About this calculator
This remortgage calculator uses the standard repayment mortgage formula to compare monthly payments at two rates, then takes away your fees to show the saving over the deal. It assumes a repayment mortgage and that the rates stay the same for the deal. Results are estimates; your lender or broker will confirm exact figures.