Arrangement / booking fee on the new deal.
What is a remortgage?
A remortgage replaces your current mortgage with a new deal, with the same lender or a new one, without buying a different property. People remortgage when a fixed rate is ending, to avoid moving onto the lender's standard variable rate, or to borrow more against the home.
It usually saves money when the interest you save over the new deal is greater than the new product fee and any early repayment charge on the old one. Starting three to six months before the fix ends leaves time to complete before the rate rises. This calculator compares the cost of staying with the cost of switching. It is not a redemption figure from your lender.
Switching a £200,000 mortgage from 6.5% to 4.6% saves £227 per month — a net saving of £4,458 over 2 years after a £999 product fee.
How to think about remortgaging
The saving maths
Monthly saving × 12 × fix length − product fee = net saving. If your LTV has dropped into a better band (say from 85% to 75%), you may qualify for a noticeably sharper rate.
Timing matters
If you're mid-fix, ERCs usually kill the saving. If you're near the end, most UK lenders let you reserve a new deal up to 6 months ahead with no commitment if rates fall further.
Frequently asked questions
When should I remortgage?
Most borrowers start shopping 3–6 months before their current fixed rate ends to lock in a new deal and avoid slipping onto the lender's expensive Standard Variable Rate (SVR). You can usually reserve a new rate up to 6 months ahead.
What is a product fee?
A one-off arrangement or booking fee charged by the new lender — typically £999–£1,999. Lower-fee (or fee-free) products often have slightly higher rates. This calculator deducts it from your total saving.
Does this calculator include Early Repayment Charges?
No — you need to check your current mortgage offer for ERC. If you're mid-fix, ERC typically 1–5% of the balance and can wipe out any saving. Wait until you're ERC-free or within a few months of it.
How much LTV do I need to remortgage?
LTV bands sit at 60%, 75%, 85%, 90% and 95%. Lower LTV = lower rate. If your property has risen in value, request an updated valuation — you may drop to a better LTV band and get a sharper rate.
Should I extend the term to lower payments?
Extending the term reduces the monthly payment but dramatically increases the total interest paid. Only extend if monthly affordability is tight; otherwise keep the term and take the rate saving.
Reviewed by the Mortgage118 editorial team. Excludes ERC, valuation and legal fees. This calculator provides an estimate only and does not constitute mortgage advice.
- Method
- Same-term comparison
- Fee treatment
- Deducted from saving
- ERC
- Not included
Check ERC on your current deal before switching.