Remortgage calculator
A lower rate is not always cheaper once the fees are counted. Compare staying where you are with switching, over the length of the new deal.
How this is calculated
Both options are run month by month over the length of the new deal, on the same balance and remaining term.
The saving is the difference in payments over the deal, less the fees and charges paid up front, plus any difference in what is still owed at the end. That last part matters when a fee is added to the loan.
The fee payback figure is how many months of the lower payment it takes to cover the fees paid up front.
It assumes you stay on the rate you entered if you do not switch. In practice a variable rate can move during the period.
Rates used · 2026/27
| Typical arrangement fee | £999 to £1,999, or none |
| Comparison period | the length of the new deal |
| Early repayment charge | only when leaving a fixed deal early |
| Legal and valuation | often free on a remortgage |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
On £200,000 with 23 years left, moving from a 7.5% revert rate to a 4.5% two-year deal cuts the payment from £1,522.78 to £1,164.44 a month. After a £999 fee, switching saves £10,949 over the two years, and the fee is paid back in three months.
Common questions
When should I start looking to remortgage?
Many lenders let you secure a new deal three to six months before your current one ends, so you can lock in a rate and switch the day the old deal finishes without an early repayment charge.
Is a fee-free deal better?
Not always. A deal with a fee and a lower rate can work out cheaper on a large balance. Run both through the calculator and compare the saving.
Should I add the fee to the mortgage?
It avoids paying it up front, but you then pay interest on it for the rest of the term. Paying it up front is cheaper if you can.
Do I have to switch lender?
No. A product transfer with your current lender is often simpler, with no legal work or valuation, though another lender may offer a better rate.