Compare your current mortgage deal against a new one. See monthly savings, total costs, fees, and how long until you break even.
This calculator provides estimates for comparison purposes only. It does not constitute financial advice. Remortgage costs vary by lender and product. Always obtain a formal mortgage illustration and consult a qualified mortgage adviser before switching.
Remortgaging means switching your existing mortgage to a new deal, either with your current lender (a product transfer) or with a new lender. UK homeowners commonly remortgage when their fixed-rate or discounted period ends and they move to their lender's standard variable rate (SVR), which is usually significantly higher. With interest rates fluctuating, knowing whether remortgaging will save you money is essential. This calculator compares the total cost of staying on your current deal against switching to a new one, factoring in arrangement fees, valuation fees, legal costs, and any early repayment charges. It also calculates the break-even point, telling you exactly how many months it takes for the monthly savings to cover the upfront fees. This helps you make an informed decision about whether remortgaging is right for your situation.
To compare your current mortgage against a new deal: 1. Enter your current mortgage balance. This is your outstanding loan amount, found on your latest mortgage statement. 2. Enter your current interest rate. If you are already on your lender's SVR, enter that rate. If still on a fixed rate, enter the fixed rate. 3. Enter the remaining term on your current deal in months. For example, if you have 20 years left, enter 240. 4. Enter the new interest rate you have been offered or are considering. 5. Enter the new mortgage term in months. You may choose to extend the term to lower monthly payments, or shorten it to pay off faster. 6. Use the advanced options to enter the fees for the new deal. Arrangement fees, valuation fees, and legal costs are typical. If leaving your current deal early, include the early repayment charge. 7. Review the results. The monthly saving shows the difference in monthly payments. The net saving accounts for all fees over the full term. The break-even point tells you when the switch starts saving you money overall.
The calculator computes the monthly payment for both the current and new mortgage using the standard annuity formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. For the current deal, total cost = current monthly payment multiplied by the remaining months. For the new deal, total cost = new monthly payment multiplied by the new term, plus all fees (arrangement fee + valuation fee + legal fees + early repayment charge). Monthly saving = current monthly payment minus new monthly payment. Net saving = total cost of current deal minus total cost of new deal (including all fees). Break-even months = total fees divided by monthly saving (rounded up). This is the number of months it takes for the accumulated monthly savings to cover the upfront costs of remortgaging. The chart shows a bar comparison of the total cost for each deal, broken down into principal, interest, and fees, giving you a clear visual comparison.
When comparing remortgage deals, consider the total cost over the full term rather than just the monthly payment. A lower monthly payment with a longer term may cost more in total interest. Some lenders offer fee-free remortgage deals which can reduce your break-even point to zero. Product transfers (switching to a new deal with your existing lender) are often simpler and faster than remortgaging with a new lender. They typically do not require a new valuation or legal work, which can reduce costs. However, they may not offer the most competitive rates on the market. The FCA requires mortgage lenders to provide a Key Facts Illustration (KFI) and European Standardised Information Sheet (ESIS) for any mortgage offer, making it easier to compare deals like-for-like. A qualified mortgage adviser can search the whole market on your behalf and may find deals not available directly to consumers.