Remortgage Savings Calculator
Compare your current mortgage deal with a new rate. See monthly savings, total benefit over the remaining term, and whether the switch costs are worth it.
When to remortgage
Most borrowers remortgage at the end of their fixed-rate period to avoid reverting to their lender's Standard Variable Rate (SVR), which is typically 1–2% higher than the best available fixed rates. If your fixed deal is ending in the next 3–6 months, you can lock in a new rate now — most lenders allow you to secure a rate up to six months in advance.
Remortgaging mid-deal (before your fixed period ends) can also make sense if rates have dropped significantly — but you'll need to factor in the Early Repayment Charge (ERC), which is typically 1–5% of the outstanding balance. This calculator helps you work out whether the saving justifies the cost.
Don't forget to compare your lender's product transfer rates alongside new deals from other lenders. Product transfers are often slightly cheaper and involve less paperwork, though the rate may not be the absolute best available.
Frequently asked questions
- What is an early repayment charge (ERC)?
- An ERC is a fee charged by your current lender if you repay your mortgage (or switch away) before the end of a fixed or discount period. ERCs are typically 1–5% of the outstanding balance and decrease each year toward the end of the deal. Check your mortgage offer document for the exact charges.
- How long does remortgaging take?
- Typically 4–8 weeks from application to completion. Start the process 3–6 months before your current deal expires to ensure a seamless transition. If you're switching lenders, you'll need a property valuation and a solicitor (some lenders cover these costs).
- Can I remortgage if I'm in negative equity?
- It's difficult but not impossible. Your current lender may offer a product transfer (which doesn't require a new valuation). Switching to a different lender with negative equity is very unlikely to be approved, as the new lender would need the property to cover the loan amount.
- Should I add fees to my mortgage or pay them upfront?
- Adding fees to your mortgage means you'll pay interest on them for the remaining term. For a £1,000 fee at 4.5% over 22 years, that's roughly £600 in additional interest. If you can afford to pay upfront, it's usually cheaper overall.
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Estimates only, based on the assumptions you enter and current published rates. Not financial advice. Your actual costs depend on your circumstances and your lender. HomeThink is not authorised or regulated by the Financial Conduct Authority and recommends no lender or mortgage.
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