Remortgage savings calculator
What switching deals actually saves, after fees and exit charges.
Real deals vary by loan-to-value, credit history and lender — and leaving a fix early can trigger an early-repayment charge that dwarfs any saving, so check your ERC and exit fees before switching. Illustration only, not financial advice — assumes the same balance and term on both deals.
A remortgage is just replacing your current deal with a cheaper one — with a new lender, or via a “product transfer” with your existing one. The saving is driven by the rate gap on your remaining balance: dropping £180,000 of borrowing from 5.5% to 4.25% saves roughly £185 a month in interest at the start. The bigger the balance and the bigger the gap, the more switching is worth.
The comparison only means something net of costs. New deals often carry a product fee (commonly around £999), plus possible valuation and legal costs — though many remortgage deals include those for free. If you are leaving a fix early, an early repayment charge of 1–5% of the balance usually swamps any saving; the calculator lets you test it, but the usual answer is to wait and lock a new deal for the day the fix ends. Watch the fee-versus-rate trade-off too: on smaller balances a slightly higher rate with no fee often wins.
The one clearly expensive option is doing nothing. When a deal ends you roll onto the lender’s standard variable rate, typically 2–3 percentage points above the best available deals — £300 or more a month on a mid-sized balance. You can usually lock a new deal up to 6 months ahead, and if rates fall before completion you can generally re-select a cheaper one. Set the reminder; it is the highest-value admin in home ownership.
Common questions
When should I start looking to remortgage?
About 6 months before your current deal ends. Most lenders let you secure a new rate that far ahead, protecting you against rises while leaving you free to switch again if pricing improves. Leave it past the end date and you land on the standard variable rate, which is almost always the most expensive month-to-month option.
Is it worth paying an early repayment charge to switch?
Rarely, but do the sums: an ERC of, say, 3% on £180,000 is £5,400, so the new deal must save more than that (plus fees) over the period you’d otherwise be stuck. That usually needs a rate gap of well over a percentage point with a long time left on the old fix. The calculator nets it off for you.
Product transfer or full remortgage — which is better?
A product transfer (new deal, same lender) is faster and needs no legal work or full affordability check — useful if your circumstances have got harder to underwrite. A full remortgage to another lender means more paperwork but a wider market, and lenders reserve some of their best pricing for new customers. Check both; the difference is often real money.
Can I remortgage to borrow more?
Yes — many people raise money for home improvements or to consolidate debt when they switch. The extra borrowing goes through full affordability checks and pushes up your loan-to-value, which can worsen the rate on the whole loan. Consolidating short-term debt onto a 20-year mortgage can also turn cheap monthly payments into expensive total interest — check the lifetime figure, not just the monthly one.
Numbers are half the story. Check the home itself.
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