Remortgage Savings Calculator UK
Calculate net savings from remortgaging in the UK. Compare a new rate against your current deal, factoring in arrangement fees, valuation, and legal costs.
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UK Remortgage Guide 2024
Why Remortgage?
Common reasons to remortgage: end of fixed-rate deal — standard rates much higher than fixed/tracker deals. Most people remortgage every 2-5 years. Reduce monthly payments. Switch deal type (fixed → tracker or vice versa). Release equity for home improvements. Consolidate debt (carefully — secured against home). Change to interest-only or capital repayment. Add or remove a partner from the mortgage. Best timing: 3-6 months before current deal ends. Mortgage offers valid 6 months — lock in a rate 3-6 months ahead of your current deal ending, so you're never left on the lender's expensive standard variable rate even briefly.
What should I know about Costs of Remortgaging?
Typical remortgage costs: arrangement fee: £0-£2,999. Often £999. Can be added to loan (interest accrues) or paid upfront. Higher arrangement fee deals often offer lower interest rate — calculate breakeven. Valuation: £200-500. Many lenders include free valuation in remortgage deals. Legal fees: £200-500. Many lenders offer 'free legals' (basic remortgage conveyancing). Broker fee: £0-1,500. Fee-free brokers (L&C, Habito) widely available — no need to pay. Mortgage broker often gets paid by the lender directly (a commission), which is why many whole-of-market brokers charge the borrower nothing at all — always ask upfront how a broker is paid.
What's the difference between Product Transfer and Full Remortgage?
Product transfer: switch to a new deal with your current lender. Typically no legal fees, no valuation, simpler paperwork. Lower hassle, but limited choice (only your lender's rates). Often slightly more expensive than market-best. Best when: current lender offers competitive rates. You don't want hassle of remortgaging. You have credit/income concerns that might affect new lender application. Full remortgage: switch to new lender. Access to whole market. Better rates often available — but with more paperwork, a new affordability assessment, and legal/valuation costs that a product transfer avoids entirely.
What should I know about Decision Framework?
Breakeven calculation: total fees / monthly saving = months to breakeven. Under 12 months: definite remortgage. 12-24 months: usually worthwhile if you'll stay in property. 24+ months: marginal — consider product transfer or different deal. Important: remortgaging restarts the term unless you specify otherwise. Keep same term to maintain payment level. Reduce term to keep payment same as before despite lower rate — saves more in interest. Increase term to reduce monthly payment if cash flow is tight, accepting that this increases total interest paid over the life of the loan.