Remortgage Calculator

How to Use This Remortgage Calculator

Our remortgage calculator helps you evaluate whether switching to a new mortgage deal will save you money. Use it to compare your current rate with new lender offers:

1. Enter Your Current Mortgage Details: Input your outstanding balance, current interest rate, and remaining years on your term
2. Add New Rate & Fees: Enter the new remortgage rate you've been offered, including any arrangement fees (typically £500–£3,000)
3. Choose Your New Term: Decide how long you want the new mortgage to run (5-30 years)
4. Review Your Savings: See your monthly payment change, total interest saved, and break-even point

When Is Remortgaging Worth It?

1. Your Fixed Rate Is About to Expire

Most homeowners remortgage within 6 months of their fixed-rate ending. Your current lender may automatically move you to their "standard variable rate" (SVR), which is typically 2-3% higher. Shopping around is essential.

2. Interest Rates Have Fallen Significantly

If rates have dropped 1% or more since you got your mortgage, remortgaging usually makes financial sense. Even a 0.5% reduction saves hundreds per year on a £200,000 mortgage.

3. Your Credit Score Has Improved

If you've improved your credit since taking out your mortgage, you may now qualify for better rates. Lenders offer their best rates to customers with credit scores above 750.

4. You Want to Borrow More (Equity Release)

If your property has increased in value, remortgaging lets you release equity for home improvements, debt consolidation, or other uses. This is only worth it if you use the money productively.

Understanding Remortgage Costs

Remortgaging isn't free. Before switching, understand all the costs involved:

• Arrangement Fee: £500–£3,000 (sometimes higher) charged by the new lender
• Early Repayment Charge (ERC): Penalty from your current lender if you're still on their fixed rate (typically 1-5% of your balance)
• Legal Fees: £200–£500 for solicitor or conveyancer
• Valuation Fee: Some lenders charge £150–£400 to survey your property
• Survey Fee: Optional but recommended (£300–£800) to ensure property value

Types of Remortgage Deals

Fixed-Rate Mortgages

Your interest rate stays the same for 2, 3, 5, or 10 years. Most popular option for stability and budget certainty. Current fixed rates typically range from 4-5% depending on LTV (loan-to-value).

Variable-Rate Mortgages

Your rate can change, moving with the Bank of England base rate. Tracker and discount mortgages typically offer lower rates but more risk.

Cashback Mortgages

Some lenders offer 1-5% cashback to offset arrangement fees. Check the interest rate carefully — high cashback often comes with slightly higher rates.

Remortgage Timing & Strategy

Plan Ahead (6 Months Before Term Expires)

Most mortgages let you apply for a remortgage deal 6 months before your current fixed rate ends. Starting early gives you time to compare options and lock in a rate before your term expires.

Avoid the SVR Trap

Standard variable rates are the most expensive option — typically 2-3% above fixed rates. Never let your mortgage roll onto the SVR when a better deal exists.

Consider Extending Your Term

If rates are high, extending to a longer term (e.g., 30 years instead of 25) keeps monthly payments manageable. You'll pay more total interest but have lower payments during expensive times.

FAQ: Remortgage Calculator

How accurate is this remortgage calculator?

This calculator uses standard amortisation formulas and is accurate for illustrative purposes. Actual monthly payments may vary slightly depending on your lender and exact terms. Always request a formal illustration before committing.

Can I remortgage while in a fixed-rate period?

Yes, but you'll pay an early repayment charge (ERC), typically 1-5% of your balance. This fee often outweighs the savings from a better rate unless you're remortgaging significantly lower.

Will remortgaging affect my credit score?

A remortgage requires a hard credit check, which may temporarily lower your score by 5-10 points. However, the impact is minimal and recovers within weeks. Multiple applications for different lenders count as one search if done within 14 days.

How long does remortgaging take?

Typically 4-8 weeks from application to completion. Start the process at least 6 weeks before your current term expires to avoid the SVR.

Can I get a remortgage with bad credit?

Most remortgages require credit scores above 650-700. If your score is lower, focus on improving it for 6-12 months before remortgaging. Checking your score with Experian or Equifax is free.