current rate
How current rate changes the result
Current rate is usually the first figure to test because it sets the scale of the calculation. A small error here can make the result look more precise than the real decision allows.
Mortgage strategy
Remortgage savings calculator
Use this calculator to see exactly whether a remortgage lowers your monthly payment, reduces total interest enough to justify the fees, and how long it takes to recover the switching cost.
Remortgage rate, fee and timing trade-offs
- The new rate, fees, remaining term and how long you expect to stay on the deal.
- Rate-shopping without looking at fees or the reset of the term often gives a cleaner-looking deal than the one you actually receive.
- Test the next move properly by comparing rate cut vs fees paid, then keep term vs extend term.
Before you calculate
How this remortgage savings estimate fits into a wider plan
The number should be treated as a planning checkpoint rather than an isolated answer. It is most useful when compared with a second scenario, because the difference between two choices often gives a clearer signal than a single calculation.
Keep the inputs consistent when comparing scenarios. Change one assumption at a time, then review how much the result moves. That makes it easier to see whether the decision is being driven by rate, term, contribution, balance, price or another variable.
If the estimate will affect borrowing, tax, savings or repayment decisions, leave a margin of safety. Real budgets include timing issues, irregular bills and changes in income, so the strongest plan is usually the one that still works when the figures are slightly less favourable.
Remortgage savings: the decision behind the number
The breakeven point is important. If the fee is recovered quickly through lower payments, the switch is easier to justify. If it takes most of the deal period to recover the fee, the benefit may be weaker than it first appears.
Check loan-to-value as well as rate. A lower balance or higher property value can move you into a better LTV band, which may unlock more competitive mortgage deals.
Turning the remortgage savings estimate into a practical next step
Do not ignore flexibility. Overpayment allowances, portability, early repayment charges and product fees can matter as much as the headline rate, especially if you expect to move home or repay extra during the deal.
After calculating, test a fee-free deal and a fee-paying deal side by side. The best choice often depends on mortgage size: larger balances may benefit more from a lower rate, while smaller balances can be more sensitive to fees.
Spread the fee across the fixed period when comparing deals. A £999 fee over two years is a different cost from the same fee over five years.
If the monthly saving is small, the fee recovery period matters. A deal that takes too long to recover its fee may not be worth the switch unless it offers other benefits.
Keep an eye on timing. Waiting until the current deal ends can avoid charges, but leaving it too late may mean falling onto a standard variable rate.
Compare deals over the same period. A two-year fix and five-year fix do not carry the same certainty or fee spread.
Include fees in the saving, not as an afterthought. A lower rate can lose once the fee is added.
Check the current deal end date. Switching early may trigger charges, but waiting too long can leave you on a higher variable rate.
Think about plans to move. Portability and early repayment charges matter if the mortgage may need changing before the deal ends.
Test a higher rate scenario for the next remortgage. The cheapest deal today is not the only risk.
If the balance is small, fee-free products may deserve more attention because fees are spread over fewer pounds of borrowing.
A lower rate is not always the lowest-cost deal once product fees are included. Spread the fee across the fixed period and compare the total effect.
If you may move home, early repayment charges and portability matter. The cheapest monthly payment can become expensive if the mortgage must be changed early.
Check whether a fee-free product is better for smaller balances. Large fees are harder to justify when the mortgage balance is lower.
Do not wait until the current deal has already ended to start comparing. A standard variable rate can make the gap between deals more expensive.
Use the estimate to shortlist options, then confirm affordability and eligibility with the lender or broker before assuming the saving is available.
new rate
Why new rate needs a careful check
New rate often decides whether the headline result is useful or misleading. Check it before relying on the answer for a budget or application.
fees
When fees should be tested again
Fees can move the result enough to change the decision. Run a second scenario if the first answer only works under ideal conditions.
Calculator
Check whether remortgaging saves money after costs
Calculator
Compare staying on your current deal with switching to a new rate, including fees and any term change.
Results
Your estimated remortgage summary appears here after calculation.
Remortgage snapshot
—
After fees, switching would change your monthly payment by —.
Net saving
—
Potential saving—
Fees—
Keeping your current deal would mean —. Switching would mean —. The break-even point is —, based on the fees entered and the estimated monthly payment difference.
After you calculate
Compare remortgage savings against fees and future payment risk
Remortgaging can reduce payments or protect against rate changes, but the saving needs to be checked after fees. Arrangement fees, valuation costs, legal costs and exit charges can change whether a lower rate actually leaves you better off.
Use the result to compare your current deal with the new deal over a sensible period. Looking only at the monthly saving can be misleading if the upfront fee is large or if the new rate only lasts for a short fixed period.
Compare your options
How to improve the remortgage saving
Start with the factor you control most directly. That may be current rate, new rate or product fee. If the result still does not work, compare a different route rather than stretching the same plan too far.
Use the remortgage estimate before choosing a new deal
Save the scenario you intend to follow and revisit it when early repayment charge changes. A useful estimate is one you keep updated, not one you run once and forget.
Practical guidance
Use the remortgage estimate before choosing a new deal
Save the scenario you intend to follow and revisit it when early repayment charge changes. A useful estimate is one you keep updated, not one you run once and forget.
FAQ
Remortgage savings calculator questions people actually ask
Does a lower rate always mean I’ll save money?
Not always. Product fees, legal costs, valuation charges and a longer term can offset the benefit. The rate matters, but the useful comparison is the net result after costs.
How is the break-even month calculated?
Break-even is the point where the monthly saving has repaid the upfront fees. If the new payment is not lower, or the saving is tiny, the break-even point may be too late to make the switch worthwhile.
Does this include early repayment charges (ERCs)?
No. ERCs can be significant and vary by lender and product. If one applies, it can change the decision quickly, so include it alongside this comparison rather than treating it as a minor extra.
Are fees added to the mortgage balance?
This calculator treats fees as upfront costs. If you add a fee to the loan, the balance increases and the real interest cost will be higher than shown here.
What if I change the term when I remortgage?
Extending the term usually lowers the monthly payment but increases total interest. Shortening the term usually raises the payment while cutting the total borrowing cost. That trade-off should be explicit in the decision.
Is this accurate for UK mortgages?
It is a useful estimate. Many UK lenders calculate interest daily and have product-specific fees, incentives and criteria. Use this as a comparison tool first, then confirm the exact figures with the lender or broker.
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