What is the Remortgage?
Remortgaging means switching your existing mortgage to a new deal, usually to escape the standard variable rate when a fix ends. SVR is typically 2–4% above the best available rate, so switching is often the single biggest saving available to a homeowner.
The decision turns on whether the rate saving exceeds product fees, legal and valuation costs, and any early repayment charge.
Formula & worked example
Break-even months = (Fees + ERC) / monthly saving
Worked example: £210,000 with 22 years left, moving from 6.4% to 4.5% with £1,200 of fees and no ERC. The payment falls from about £1,485 to £1,262 — saving roughly £223 a month. Fees are recovered in about 5.4 months, and the 5-year deal saves close to £13,400.
How to use this remortgage calculator
- Enter your outstanding balance and years remaining.
- Enter your current rate and the new rate offered.
- Add all fees — product, valuation, legal, broker.
- Include any early repayment charge if leaving a fix early.
Smart tips
- Start looking six months before your fix ends. Offers are usually valid for three to six months.
- A fee-free deal at a slightly higher rate often wins on smaller balances; large balances favour paying the fee.
- A product transfer with your existing lender needs no legal work and is faster, though rarely the cheapest option.
- Improving your loan-to-value band before applying — even by overpaying a little — can unlock a materially better rate.
- Never let the deal lapse onto SVR. That single oversight costs more than any fee comparison.
Frequently asked questions
When should I remortgage?
Start three to six months before your current fixed rate ends, so the new deal begins the moment the old one expires.
Is it worth remortgaging with fees?
Yes if the break-even point is well within the new deal period. This calculator shows exactly how many months that takes.
What is an early repayment charge?
A penalty for leaving a fixed deal early, typically 1–5% of the balance. It often outweighs the saving from switching mid-fix.
Should I add fees to the loan?
It avoids an upfront cost but you pay interest on them for the whole term. Paying upfront is cheaper if you can afford it.
Want the theory behind the numbers? Read our UK mortgage guides on the Money Blog.