Remortgage Calculator

If your current fixed or discounted mortgage deal is ending — or you are simply sitting on your lender’s standard variable rate — remortgaging can often save a substantial amount. Our remortgage calculator compares your current deal against a new offer, factoring in any new product fees, so you see the real saving rather than just the headline rate difference.

Why So Many Borrowers Overpay Without Realising

Once a fixed or discounted deal ends, most lenders automatically move borrowers onto their standard variable rate (SVR) — typically several percentage points higher than competitive fixed deals available on the market. Millions of UK borrowers unintentionally sit on their SVR for months or years simply because remortgaging requires a bit of admin, and it is easy to let a renewal date slip by. Setting a reminder around four to six months before your current deal ends — when most new deals can be arranged — is one of the simplest ways to avoid this.

Fees vs Rate: What Actually Matters

A new remortgage deal often comes with a product fee, which can be added to the loan or paid upfront. This calculator factors that fee in and calculates a break-even point — how many months of saving it takes before the fee has paid for itself. If you are planning to move house or remortgage again soon, a higher fee for a marginally lower rate may not be worth it; if you intend to stay on the deal for its full length, the maths often favours paying the fee for a better rate.

A Worked Example

Say your current balance is £210,000, currently on an SVR of 6.2% with 20 years remaining, costing around £1,540 a month. A new remortgage deal at 4.4% over the same term, with a £999 fee, would bring the payment down to roughly £1,315 a month — a saving of around £225 a month. At that saving rate, the £999 fee pays for itself in well under five months, after which the saving is effectively “free” money back in your pocket for the rest of the deal.

Beyond the Numbers: Other Remortgage Considerations

Remortgaging is also a natural point to review whether your circumstances have changed — perhaps you want to release some equity for home improvements, consolidate other debts (though this needs careful thought, since unsecured debt moved onto a mortgage is repaid over a much longer period, often costing more overall), or simply switch to a more flexible product. It is also worth checking whether your current lender offers a competitive “product transfer” — switching to a new deal with the same lender, without a full remortgage application — which can sometimes be quicker and cheaper in fees, even if the rate is marginally less competitive than the open market.

When Remortgaging Might Not Be the Right Move

Remortgaging is not always beneficial. If you are still within your current deal’s fixed or discounted period, an early repayment charge could easily outweigh any saving from switching now — it is usually better to wait until closer to the natural end of your deal, when most lenders let you lock in a new rate penalty-free a few months in advance. Similarly, if your property has fallen in value or your circumstances have changed unfavourably (a change in employment status, for example), you may find your options at remortgage are more limited or less competitive than your existing deal, in which case staying put, or negotiating a product transfer with your current lender, may work out better than switching lenders entirely.

Frequently Asked Questions