Remortgage Savings Calculator

How remortgaging can save you money

When a fixed or tracker deal ends, most lenders move you onto their standard variable rate (SVR) automatically, which is usually significantly higher than the rate you were on. Remortgaging means switching to a new deal — either with your existing lender or a new one — before or as soon as that happens, to avoid paying the higher SVR.

Even a small drop in interest rate can add up to a large saving over the remaining term of your mortgage, because interest is charged on your outstanding balance every single month. The bigger your balance and the longer your remaining term, the more a lower rate is worth.

New deals almost always come with fees — typically an arrangement or product fee, sometimes with valuation and legal fees on top. Some of these can be added to the mortgage itself rather than paid upfront, but that means paying interest on them too. It's worth weighing the fees against the monthly saving to see if a deal is genuinely worth it, especially for smaller mortgage balances where the fee makes up a bigger share of the saving.

If you're still part-way through a fixed or tracker deal, check whether leaving early triggers an early repayment charge (ERC). These are usually a percentage of your outstanding balance and can easily outweigh the savings from a lower rate, so it's often worth waiting until your current deal ends before you switch.

Use the calculator above to compare your current rate against a new deal and see the potential saving, both before and after fees.