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Remortgage Calculator

Compare your current mortgage deal with a new one, see how many months it takes to recoup the new deal's fees, and estimate your lifetime saving.

£
%
years
%
years
£

Arrangement, product, valuation and legal fees for the new deal, combined.

Monthly saving£206.83
Current monthly payment£1,176.93
New monthly payment£970.10
Break-even point5 monthsTime for the monthly saving to cover the new deal fees
Lifetime saving£53,604.12Over the shorter of the two remaining terms, after fees

How this calculator works

A remortgage swaps your existing mortgage deal for a new one — usually on your existing outstanding balance, either with your current lender (a "product transfer") or a new one. The calculator works out your monthly payment on both deals using the standard amortising-loan formula, then compares them:

Monthly saving = current monthly payment − new monthly payment

If the new deal has upfront fees (arrangement, product, valuation, or legal fees), those fees eat into your saving before you're better off overall. The calculator finds your break-even month — fees divided by the monthly saving, rounded up — and a lifetime saving figure: the total saving over the shorter of your two remaining terms (an apples-to-apples comparison window), minus the new deal's fees. If the new deal doesn't actually save you money each month, there's no break-even point to find, and the calculator will say so clearly rather than showing a meaningless number.

Worked example

Say you have £180,000 outstanding, currently on a 5.5% deal with22 years remaining. You're offered a new deal at 4.2% over a fresh25-year term, with £999 in fees. Your current payment is around£1,177 a month; the new deal brings that down to about £970 a month — a saving of roughly £207 a month. That saving covers the £999 fee in about 5 months, and over the remaining comparison term, the lifetime saving (after fees) comes to somewhere in the region of£53,600. Bear in mind part of that saving reflects stretching the loan back out to a fresh 25-year term rather than staying on the 22 years remaining — worth weighing up alongside the monthly saving.

What affects your result

  • The rate gap — the difference between your current and new rate is the single biggest driver of your monthly saving.
  • New deal fees — a lower rate with high fees can take longer to break even than a slightly higher rate with low or no fees, especially if you plan to move again soon.
  • Term changes — resetting to a longer new term (rather than keeping your existing remaining term) lowers the monthly payment further, but increases the total interest paid over the life of the loan.
  • Your current lender's standard variable rate (SVR) — if you do nothing when your deal ends, you typically revert to the SVR, which is usually well above deal rates, so "doing nothing" has its own real cost to compare against.
  • Early repayment charges (ERCs) — if you remortgage before your current deal's fixed or discount period ends, your existing lender may charge an ERC, which this calculator doesn't include automatically — check your current offer document and add it to the new deal fees field if it applies.

A note on accuracy

This calculator compares principal-and-interest payments only, using unrounded figures internally with rounding applied solely for display. It assumes both deals are ordinary repayment mortgages and doesn't model early repayment charges on your existing deal, cashback incentives, or fees added to the loan rather than paid upfront — add those manually to the fees field if they apply to your situation. For general guidance on remortgaging, see MoneyHelperand the Financial Conduct Authority.

Frequently asked questions

How much can I save by remortgaging?

It depends on the gap between your current rate and the new rate, and the fees on the new deal. For example, moving a £180,000 balance from a 5.5% deal (with 22 years remaining) to a 4.2% deal over 25 years cuts the monthly payment from around £1,177 to £970 — a saving of roughly £207 a month. After a £999 arrangement fee, that saving pays for itself in about 5 months, and could add up to a lifetime saving of tens of thousands of pounds over the remaining term.

Is it worth remortgaging to save money?

Usually, yes, if the new rate is meaningfully lower than your current rate (or your current deal's fixed period is ending and you'd otherwise revert to your lender's standard variable rate, which is typically much higher). But it's only clearly worth it once you factor in the new deal's fees — a low headline rate with high fees can sometimes cost more overall than a slightly higher rate with no fees. This calculator's break-even month tells you exactly how long it takes the monthly saving to cover the new deal's costs.

What are typical remortgage costs?

Costs vary by lender and product but commonly include an arrangement/product fee (often £0-£2,000, sometimes a percentage of the loan), a valuation fee, and legal fees (though many remortgage deals include free legal work). Some deals also charge an early repayment charge (ERC) on your existing mortgage if you leave before a fixed or discount period ends — check your current mortgage offer document, as this calculator doesn't automatically include ERCs from your existing deal.

What does "break-even month" mean on a remortgage?

It's how many months it takes for your monthly saving on the new deal to add up to more than the fees you paid to get it. If your break-even point is, say, 5 months, you're in profit from month 6 onwards. If the new deal doesn't actually save you money each month — or saves so little that the fees are never fully recouped within the new term — the calculator will tell you the fees are never recouped, rather than showing a misleading number.

Should I remortgage before my fixed rate ends?

Most UK lenders let you lock in a new remortgage deal 3-6 months before your current deal ends, and many allow it even earlier. Locking in ahead of time avoids slipping onto your lender's standard variable rate (SVR), which is usually noticeably higher than fixed or tracker deals. It's generally worth comparing remortgage options a few months before your current deal expires, even if you ultimately decide to stay with your existing lender via a product transfer.

Does remortgaging affect my credit score?

Applying for a new mortgage deal — whether with a new lender or your existing one — typically involves a credit check, which can cause a small, temporary dip in your score, similar to any credit application. This is normal and shouldn't be a major concern if you have a reasonable credit history; the potential savings from a better rate usually far outweigh a minor, short-lived score impact.

Related calculators

Mortgage Repayment CalculatorWork out your monthly payment on a new mortgage deal.Loan-to-Value (LTV) CalculatorCheck which rate tier your remortgage LTV falls into.Mortgage Overpayment CalculatorSee how overpaying compares with remortgaging to a shorter term.