Remortgage Calculator

Remortgaging means replacing your current mortgage with a new deal, either with your existing lender (a product transfer) or a new lender. The most common reason to remortgage is when a fixed-rate period ends and the mortgage reverts to the lender's Standard Variable Rate (SVR), which is typically 1-3% higher than available fixed rates.

When comparing deals, you need to factor in the total cost including arrangement fees (£500-£2,000), valuation fees, legal fees and any early repayment charge (ERC) on your current mortgage. A lower interest rate does not always mean a cheaper deal once fees are included. The calculator compares the total cost over the new fixed period.

This calculator compares your current mortgage cost (remaining term at current rate) with a remortgage option. It shows the monthly saving, total saving over the new deal period, the break-even point where savings exceed fees and whether it is worth paying an ERC to switch early.

What is remortgaging? Replacing current mortgage with new product, either with same lender ('product transfer') or different lender ('remortgage'). Most UK borrowers remortgage when initial fixed-rate period ends (typically 2, 3 or 5 years). Average UK saving by remortgaging on time vs going onto SVR (Standard Variable Rate): £2,000-£4,000/year. Procrastinating onto SVR is the most expensive UK mortgage mistake — SVR rates often 7-9% vs available fixes at 4-5%.

When to remortgage — timing matters. Most lenders allow you to lock in new rate 3-6 months before current deal ends. Apply 4-6 months before end of fix. Process timeline: 6-12 weeks to complete. Early Repayment Charges (ERCs): typically 1-5% of mortgage balance if leaving fix early — sometimes cheaper to wait, sometimes worth paying if rate drop large. Calculate: ERC cost vs interest saving over remaining term. ERC £4,000 to escape 5% fix and get 3.5% rate on £200k for 3 years = £9,000 interest saving — clear win.

Remortgage costs 2026. Product fee (lender): £0-£2,000 (or 'fee-free' options with slightly higher rate). Valuation: usually free with remortgage. Solicitor: £200-£500 (or 'free legals' offered by many lenders). Broker fee: £0-£500 (some brokers free, paid by lender commission). Total typical remortgage cost: £500-£2,500. Compare against interest saving: rate cut from 5% to 4% on £200k mortgage saves £2,000/year — break-even on costs within first year.

Loan-to-Value (LTV) — better LTV = better rate. LTV = mortgage balance ÷ property value. Best rates at: 60% LTV (excellent), 75% LTV (good), 85% LTV (average), 90-95% LTV (worst rates). Sample 2026: 60% LTV 2-year fix 3.8%; 90% LTV 4.7% — almost 1 percentage point difference. Strategy: overpay before remortgage to drop LTV band. Property value increase shifts LTV down automatically — request revaluation if your area's prices have risen. Major rate improvements at each LTV breakpoint.

Fixed vs tracker vs variable on remortgage. Fixed: rate fixed for 2-10 years, predictable payments. Best when rates rising or stable. Tracker: follows Bank of England base rate + margin (e.g. 'BoE + 0.5%'). Variable as base rate changes. Best when rates falling. Standard Variable Rate (SVR): lender's discretionary rate, expensive (typically 7-9%). Most UK borrowers choose 2 or 5-year fixed. Longer fixes (10-year): security but locks you in if rates drop; ERCs prohibitive. Tracker has more risk but tracks falling rates instantly.