Remortgage Calculator
Compare a new mortgage deal side-by-side with your existing mortgage. Calculate monthly savings, net financial benefit over your deal term, and see the exact break-even point after all fees.
Current Mortgage
New Mortgage
Typically the duration of your new fixed/tracker rate deal (e.g. 2 or 5 years).
Fees & Charges
Penalties charged by your current lender to leave early.
Deal Comparison Details
Schedule Comparison
| Year | Current Balance | New Balance | Current Cum. Interest | New Cum. Interest |
|---|---|---|---|---|
| 1 | £196,166 | £195,569 | £10,904 | £8,909 |
| 2 | £192,116 | £190,935 | £21,592 | £17,615 |
| 3 | £187,838 | £186,088 | £32,052 | £26,108 |
| 4 | £183,318 | £181,019 | £42,270 | £34,378 |
| 5 | £178,543 | £175,716 | £52,234 | £42,416 |
| 6 | £173,499 | £170,170 | £61,928 | £50,210 |
| 7 | £168,171 | £164,369 | £71,337 | £57,748 |
| 8 | £162,542 | £158,302 | £80,446 | £65,021 |
| 9 | £156,595 | £151,955 | £89,237 | £72,015 |
| 10 | £150,313 | £145,318 | £97,693 | £78,717 |
How does this calculator work?
Unlike simple calculators that only compare monthly payment differences, this tool performs atrue financial savings calculation. It factors in:
- Payment Reductions: The direct monthly cash savings from a lower interest rate.
- Amortization Difference: A lower rate means more of your payment goes towards paying down the principal balance, leaving you with a smaller mortgage balance at the end of the deal period.
- Fees and Charges: Product fees, early repayment charges, and legal fees are subtracted from your total savings to show the genuine net benefit of switching.
Worked example
For a current balance of £200,000 at 5.50% with 25 years remaining: Switching to a new rate of 4.50% saves £116.51 per month. Even after paying £1,499 in product and other fees, the true savings over a 5-year fixed deal period comes to £8,319, with a break-even time of 12.9 months.
Frequently asked questions
What is a remortgage?
A remortgage is the process of switching your existing mortgage deal to a new one, either with your current lender (often called a product transfer) or with a new lender.
When should I start looking to remortgage?
It is generally best to start shopping around 3 to 6 months before your current fixed or tracker rate deal ends. This gives you enough time to secure a new deal and prevent rolling onto your lender's expensive Standard Variable Rate (SVR).
What fees should I watch out for when remortgaging?
Key fees include: 1) Product fees (lender arrangement fees), 2) Early Repayment Charges (ERCs) if you leave your current deal before its term ends, 3) Legal/Conveyancing fees, and 4) Valuation fees. A remortgage calculator helps you see if the interest savings outweigh these fees.
Should I pay the product fee upfront or add it to the loan?
Paying the fee upfront is cheaper in the long run because you avoid paying interest on that fee over the life of the mortgage. Adding it to the loan reduces your upfront cash requirements but increases your monthly payments and total interest paid.