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. Most borrowers reach that moment when an initial fix of 2, 3 or 5 years runs out.

Comparing deals on the headline rate alone rarely gives the right answer. What matters is the total cost, including arrangement fees (£500-£2,000), valuation fees, legal fees and any early repayment charge (ERC) still attached to your current mortgage. A lower interest rate does not always mean a cheaper deal once fees are included. Feed in your balance, remaining term and current rate against a proposed new deal, and the calculator returns the monthly saving, the net saving across the length of the new deal after fees and any ERC, and the break-even point where savings overtake the costs, which shows whether paying an ERC to switch early is worth doing.

Timing decides how much of that saving you actually keep. Most lenders let you reserve a new rate 3-6 months before the current deal ends, and the sensible window to apply is 4-6 months out, because the process itself takes 6-12 weeks to complete. Drifting onto the SVR is the expensive mistake: the average SVR was 7.13% in mid-September 2026 against 5.73% for an average two-year fix (Moneyfacts), and switching on time is worth £2,000-£4,000 a year to the average borrower. A £200k mortgage rolling off a 4.5% fix onto a 7.1% SVR costs around £5,200 in extra interest over a year.

Costs on a remortgage are modest by house-buying standards. The product fee can run to £2,000, though most lenders also offer a fee-free version carrying a slightly higher rate. Valuation is usually free, solicitors charge £200-£500 where free legals are not included, and a broker fee runs up to £500 or nothing at all where the lender pays commission. Total costs typically land between £500 and £2,500. Weigh that against the interest saved, because cutting the rate from 5% to 4% on a £200k mortgage saves £2,000 a year, so the outlay is recovered inside the first year.

Early repayment charges are the main obstacle to moving mid-deal. They usually run at 1-5% of the outstanding balance, so the decision is arithmetic rather than principle: does the interest saved over the remaining term beat the charge? Paying a £4,000 ERC to escape a 7% fix and take 5.5% on £200k for 3 years buys about £9,000 of interest saving, which is a clear win. Where the rate gap is narrow, or the fix has only months left to run, the charge usually swallows the benefit and waiting costs nothing.

Loan-to-value, the mortgage balance divided by the property value, decides which pricing tier you are offered. The best rates sit at 60% LTV, 75% is still good, 85% is average, and 90-95% attracts the worst pricing. In 2026 the best 60% LTV two-year fixes typically sit around a percentage point below 90% LTV ones. Because the bands work as steps rather than a slope, a modest overpayment before you apply can push you into cheaper territory. Rising local prices do the same job for nothing, so ask for a revaluation if your area has moved.

Product type matters as much as the rate itself. A fix holds the payment steady for anything from 2-10 years and suits a period when rates are rising or flat. A tracker follows the Bank of England base rate plus a margin, quoted as something like base plus 0.5%, and moves as the base rate moves, which rewards you when rates fall and hurts when they do not. Most borrowers settle on a two or five-year fix. A 10-year fix buys long security but locks you in if rates drop, and its early repayment charges can be prohibitive.