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Remortgage calculator
Whether switching to a new deal actually saves money once the arrangement fee and any early repayment charge are paid, and how that compares with doing nothing and rolling onto the SVR.
Switching vs staying put
Your monthly payment would drop by about
£142.63
£1,375.77 now vs £1,233.14 on the new deal
- Net over the 2 years
- saves £4,129
- after the fee
- Break-even
- Month 8
- when savings cover the switching costs
True cost over the next 2 years
interest plus fees on each route, capital repayments netted out
| Route | Monthly | Total cost |
|---|---|---|
| Switch to the new deal | £1,233.14 | £17,271 |
| Stay on your current rate | £1,375.77 | £21,399 |
| Do nothing, roll onto SVR | £1,550.60 | £27,355 |
Against doing nothing and rolling onto a 7% SVR, switching saves about £10,084 over the 2 years.
This is a guide, not advice. It assumes the same remaining term on every route and a constant SVR, and it ignores legal and valuation costs (often free on remortgage deals) and what happens after the fixed period ends. A whole-of-market broker can check deals this calculator cannot see.
Want the full payment schedule on a single rate? Try the mortgage repayment calculator, or see what paying extra each month saves with the mortgage overpayment calculator.
Common questions
- When is remortgaging worth it?
- When the total you save on interest over the new deal beats the total cost of switching: arrangement fee, any early repayment charge, and any legal or valuation costs. As a rule of thumb, the bigger your balance and the longer you will keep the new deal, the smaller the rate cut needs to be. On a £200,000 balance, 0.5 percentage points off saves about £1,000 of interest in the first year alone, clearing a £999 fee in roughly twelve months.
- Should I pay the early repayment charge or wait for my fix to end?
- Usually wait. ERCs are often 1% to 5% of the balance, which dwarfs most rate savings. Paying it only tends to make sense when rates have moved a long way in your favour, or the ERC is in its final, cheapest year. The practical move: most lenders let you lock in a new deal up to six months before your current one ends, so you can secure today's rate and switch the day the ERC disappears.
- Is a lower rate with a big fee better than a higher rate with no fee?
- It depends on your balance. A fee is a fixed cost, while the rate scales with what you owe. On large balances the low-rate-plus-fee deal usually wins because the interest saving outweighs the fee; on small balances the fee-free deal often wins even at a slightly higher rate. Run both through this calculator and compare the total cost over the deal, not just the monthly payment.
- What is a standard variable rate (SVR)?
- The rate your lender moves you onto when a fixed or tracker deal ends, if you do nothing. The lender sets it and can change it at any time, and it is normally well above the rates offered on new deals, often 7% or more when fixes are nearer 4% to 5%. Sitting on the SVR is usually the most expensive option, which is why the calculator shows it as the do-nothing route.
- Should I add the arrangement fee to the loan or pay it upfront?
- Paying upfront is cheaper overall, because a fee added to the loan accrues interest for the rest of your term: £999 added to a 20-year mortgage at 4.5% costs roughly £1,520 by the end. Adding it makes sense when you need to keep cash free; just know the trade-off. The calculator models both, including the interest on an added fee.
- Does remortgaging hurt my credit score?
- A full remortgage to a new lender involves a hard credit check, which has a small, short-lived effect. A product transfer (a new deal with your existing lender) usually skips affordability checks entirely, which can also help if your circumstances have changed since you took the mortgage. Compare both routes; product transfers are quicker but the open market is often cheaper.
Want the month-by-month schedule behind these numbers? The mortgage repayment calculator breaks any rate down year by year, and if you would rather attack the balance than chase rates, the mortgage overpayment calculator shows what extra payments save in interest and years.