Remortgage Savings Calculator

How the remortgage savings calculator works

The calculator computes the monthly repayment on your current rate and on the proposed new rate, using the same outstanding balance and remaining term for both. The difference is your monthly saving (or cost increase, if the new rate is higher). The annual saving is the monthly saving multiplied by twelve. If you entered an arrangement fee, the calculator divides the fee by the monthly saving to find the break-even point — the number of months before the cumulative savings exceed the cost of the fee. The total saving over the remaining term deducts the arrangement fee from the cumulative monthly savings.

Note that the calculator does not account for early repayment charges (ERCs) on your current deal. If you are mid-fix, you may face an ERC for leaving early — this is often a percentage of the outstanding balance and should be compared against the projected savings before deciding to remortgage.

When to consider remortgaging

The most common trigger for remortgaging is the end of a fixed-rate or tracker deal, when the mortgage reverts to the lender's standard variable rate (SVR). SVRs are typically significantly higher than new deal rates, so most borrowers save money by switching to a new product — either with their existing lender (a product transfer) or with a new lender. You can usually begin the remortgage process three to six months before your current deal ends to lock in a rate without incurring an ERC.

Frequently asked questions

What is an arrangement fee and should I pay it?

An arrangement fee (also called a product fee or completion fee) is a charge levied by lenders for their mortgage products. It typically ranges from £500 to £1,999. Products with no fee often carry a slightly higher rate, and products with a fee carry a lower rate. The break-even calculation shows how many months it takes for the rate saving to cover the fee cost — if that is within your planned period on the deal, paying the fee is likely worthwhile.

What is an early repayment charge?

An ERC is a penalty charged if you leave a mortgage product before the end of its fixed or tracker period. It is usually expressed as a percentage of the outstanding balance — commonly 1–5%, reducing each year of the deal. On a large mortgage, an ERC can be significant and may outweigh the savings from switching to a lower rate.

Can I remortgage to a different term?

Yes — when remortgaging, you can choose a different remaining term. Extending the term reduces monthly payments but increases total interest; shortening it does the reverse. The calculator assumes the same remaining term for both deals. If you plan to change the term, run the repayment calculator with each combination to compare total costs.

Is a product transfer the same as remortgaging?

A product transfer is switching to a new rate with your existing lender without a full remortgage application. It is generally quicker and involves no legal fees, but your existing lender may not offer the most competitive rates. Comparing the best available product transfer against deals from other lenders is worthwhile before deciding which route to take.

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