With mortgage rates constantly changing, it’s important to know whether you could benefit from switching to a new deal.
Whether your current fixed rate is coming to an end or you’re simply curious about potential savings, our calculator makes it easy to see how different rates could impact your monthly payments.
Many homeowners find they can save hundreds of pounds each month by remortgaging at the right time.
Simply enter your current mortgage details, including how much you still owe and your current interest rate, then compare it with new rates you’ve seen advertised.
What Is a Remortgage?
A remortgage simply means switching your existing mortgage to a new lender.
Unlike your first mortgage, you’re not borrowing to buy a property. Instead, you’re replacing your current mortgage with a new deal.
Most people remortgage for one of two reasons:
- to save money by getting a better interest rate
- to borrow more against their property
If your fixed-rate deal is ending, your lender will automatically move you onto their standard variable rate (SVR).
This is usually higher than other available rates, which is why many homeowners choose to remortgage at this point. For example, if you had a £400,000 mortgage and your rate jumped from 3% to 6%, your monthly payments could increase by over £600.
You might also want to remortgage to borrow extra money.
If your property has gone up in value since you bought it, you could borrow against this increased equity. Many homeowners do this to fund home improvements or to consolidate other debts.
The remortgage process is usually simpler than getting your first mortgage. You won’t need to deal with estate agents or property chains.
Timing is key when remortgaging.
It’s worth starting to look at new deals about 6 months before your current rate ends. This gives you plenty of time to compare options and sort the paperwork. Many lenders let you secure a new rate up to 6 months in advance, which can be handy if you think rates might rise.
How Does the Remortgage Calculator Work?
Our remortgage calculator makes comparing mortgage rates straightforward.
It works out how much your monthly payments could be under different scenarios, helping you see potential savings at a glance.
Start by entering the basics about your current mortgage – how much you still owe and your interest rate.
Then add the new rate you’re looking at. The calculator runs the sums and shows you the difference in monthly payments.
How Much Can You Save by Remortgaging?
The amount you could save by remortgaging depends on several factors – mainly the difference between your current rate and any new rate you switch to.
Even a small drop in your interest rate can lead to significant savings over time.
Let’s look at some numbers.
On a £400,000 mortgage with 25 years left, moving from 6% to 4.5% would cut your monthly payments by £355. That’s over £4,200 saved each year, or enough to pay for a family holiday.
Your savings might be even bigger if you’re currently on your lender’s standard variable rate (SVR).
These rates are usually higher than fixed deals – sometimes by 2% or more. If you’ve slipped onto an SVR of 7%, switching to a fixed rate of 4.5% could save you over £600 monthly on that same £400,000 mortgage.
But remember to factor in any costs.
Most remortgages come with fees – typically £1,000 to £1,500. Some lenders offer fee-free deals, but these usually have slightly higher interest rates. You’ll need to weigh up whether paying a fee is worth it based on your potential savings.
The best way to maximise your savings is to start looking at new deals about 6 months before your current rate ends. This helps you avoid spending any time on a higher SVR.
How Can a Broker Help Me Remortgage?
A mortgage broker takes the hassle out of remortgaging by doing the legwork for you.
They search across the whole market to find deals you might not spot yourself, including some that aren’t available directly from lenders.
Brokers look at your full financial picture – not just the numbers.
They consider your income, spending habits, credit history and future plans. This helps them find lenders who are most likely to accept your application and offer good rates.
For example, if you’re self-employed or have changed jobs recently, some lenders might be wary.
A broker knows which lenders are more flexible with different employment types. Or if you want to borrow more for home improvements, they’ll know which lenders offer the best terms for this.
They’ll also spot potential problems early.
If your credit score has dipped or your income has changed since your last mortgage, a broker can suggest ways to strengthen your application.
They might even save you from wasting time applying to lenders who are unlikely to accept you.
When it comes to paperwork, brokers handle most of it.
They know exactly what each lender needs and help you get everything together first time. This speeds up the process and reduces the chance of delays.
Frequently Asked Questions
Usually about 6 months before your current deal ends. This gives you time to compare rates and arrange your new mortgage without slipping onto a higher standard variable rate.
Read more: A Complete Guide to Remortgaging
No, you won’t need a new deposit. Instead, the equity in your home (the amount you own outright) acts like a deposit for your new mortgage.
Read more: Do you need a deposit to remortgage?
Yes, you can borrow more when you remortgage if you have enough equity in your property. Many people do this to fund home improvements or consolidate debts.
Read more: Capital Raising Mortgages
Usually 4-8 weeks from application to completion. It’s quicker than a house purchase mortgage as there’s no property chain involved.
Read more: How long does it take to remortgage?
Yes, you’ll need a solicitor to handle the legal work. Many lenders offer free legal services as part of their remortgage deals.
Read more: Do you need a solicitor to remortgage?
Yes, but you’ll probably face early repayment charges. These can be significant – often 2-5% of your loan amount.
Read more: Can you remortgage early?
Yes, lenders need to know your property’s current value. Some use automated valuations, others send a surveyor to inspect.
Read more: What exactly is a lender’s valuation?
You’ll typically need: payslips, bank statements (3 months), proof of ID, proof of address, and your latest mortgage statement.
Read more: What documents do I need to remortgage?
Yes, buy to let mortgages can be remortgaged in much the same way.
Read more: Buy to Let Remortgages
The name ‘day one remortgage‘ can be a little confusing as it is not the name of a specific mortgage product and it does not have to take place on day one of owning a property!
It is used to explain a scenario where someone needs to remortgage a property that they have only just bought, typically this would be within six months of legal completion.
Read more: Day One Remortgages Explained
