🏠 Remortgage Comparison Calculator
Compare your current mortgage against new deals to see if remortgaging makes sense
📍 Current Mortgage
VS
✨ New Remortgage Deal
Potential Savings Over Deal Period
£0
After accounting for all fees and charges
Calculating...
£0
Monthly Savings
£0
Total Fees
0
Break-Even (Months)
£0
Net Saving
| Metric | Current Mortgage | New Deal | Difference |
|---|
Remortgage Calculation Formulas
📐 Understanding Remortgage Calculations
Monthly Payment
Standard amortization formula where P = principal, r = monthly rate, n = total months.
Break-Even Point
Number of months until remortgage savings exceed the total fees paid.
Net Savings
Total payment savings minus all fees (ERC, arrangement, legal, valuation).
📊 Typical Remortgage Costs
| Fee Type | Typical Range | Notes |
|---|---|---|
| Arrangement Fee | £0 - £2,000 | Often added to loan or paid upfront |
| Valuation Fee | £0 - £500 | Often free with remortgage deals |
| Legal/Conveyancing | £0 - £1,000 | Often free or cashback available |
| Early Repayment Charge | 1-5% of balance | Check your current deal terms |
| Broker Fee | £0 - £500 | Some brokers are fee-free |
📈 When to Consider Remortgaging
| Situation | Recommendation | Potential Benefit |
|---|---|---|
| Fixed deal ending soon | Start looking 3-6 months before | Avoid SVR, lock in rates |
| On SVR after deal ended | Remortgage now | Significant rate reduction |
| Property value increased | Lower LTV = better rates | Access cheaper deals |
| Credit score improved | May qualify for better rates | Lower monthly payments |
| Want to borrow more | Remortgage for home improvements | Release equity |
❓ Frequently Asked Questions
Q: What is remortgaging and how does it work?
Remortgaging means switching your existing mortgage to a new deal, either with
your current lender (product transfer) or a new lender. The new mortgage pays off the old one, and
you start fresh with new terms, rates, and a new deal period.
Q: When is the best time to remortgage?
Start looking 3-6 months before your current deal ends. Most mortgage offers are
valid for 3-6 months, so you can lock in a rate early. Never let your deal expire and roll onto SVR,
which is typically 2-4% higher than fixed rates.
Q: What is an Early Repayment Charge (ERC)?
An ERC is a penalty for leaving your mortgage deal early. It's typically 1-5% of
your outstanding balance and decreases each year of your deal. For example, a 5-year fix might
charge 5% in year 1, 4% in year 2, etc. Check your terms before remortgaging.
Q: Should I add the arrangement fee to my mortgage?
Adding fees to your mortgage means paying interest on them over the full term. A
£1,000 fee over 25 years at 5% costs £1,750+ in total. Pay upfront if you can. However, a fee-free
deal at a slightly higher rate may cost more overall—always compare total costs.
Q: Do I need a solicitor to remortgage?
Yes, legal work is required to transfer the mortgage. However, many lenders offer
free legal services for remortgages. A product transfer with your current lender typically doesn't
require legal work and is faster (usually 2-4 weeks vs 4-8 weeks).