Remortgage Calculator (UK)
This remortgage calculator compares your current mortgage payment to a new deal's payment, and works out how long it takes any exit fee to pay for itself. Enter your remaining balance, both rates, and your term to see your real monthly saving.
How much you still owe on your current mortgage.
The rate on your existing deal, or the rate you'd revert to if you don't remortgage.
The rate on the remortgage offer you're considering.
Years left on your mortgage.
Any fee your current lender charges for leaving before the deal ends — enter £0 if none applies.
Monthly payment saving
£226
How much lower your monthly payment is on the new deal.
How to use this remortgage calculator
- 1Remaining mortgage balance and remaining term: from your current lender's most recent statement.
- 2Current rate: your existing rate, or the standard variable rate you'd move to if you did nothing.
- 3New rate: the rate on the remortgage deal you're comparing.
- 4Exit fee: any early repayment charge for leaving your current deal early — check your mortgage offer document.
Understanding your results
Monthly payment saving is the headline number — how much less you'd pay each month on the new deal at the same remaining term. Months to recoup the exit fee shows how quickly that saving covers any cost of leaving your current deal early; if it's a small number relative to how long you plan to keep the new deal, remortgaging is straightforwardly worth it.
The formula
Saving = Current monthly payment − New monthly paymentBoth payments are calculated using the same reducing-balance mortgage formula on your remaining balance and remaining term — only the interest rate differs between the two. The break-even point simply divides the exit fee by the monthly saving to find how many months of lower payments it takes to cover the cost of switching.
A worked example
A £200,000 remaining balance with 20 years left, moving from 6.5% to 4.5%, saves roughly £226 a month — about £2,710 a year. With a £500 exit fee, that saving covers the fee in about 3 months, making the switch worthwhile unless you expect to move house or remortgage again almost immediately.
Notes for the UK, US and India
Most UK fixed and tracker deals run 2-5 years, and lenders typically let you start arranging your next deal 3-6 months before the current one ends — locking in a new rate early can protect you from rate rises without paying an exit fee, since you're switching at the natural end of your term rather than breaking it early.
Frequently asked questions
Is remortgaging always worth it if the new rate is lower?+
Usually, but check for arrangement fees on the new deal too — a lower rate with a large upfront fee can sometimes cost more overall than a slightly higher rate with no fee, especially over a short remaining term.
What happens if I do nothing when my current deal ends?+
You'll typically move onto your lender's standard variable rate (SVR), which is usually noticeably higher than any fixed or tracker deal — this is exactly the gap this calculator is built to quantify.
Can I remortgage before my current deal ends?+
Yes, but you'll likely pay an early repayment charge unless you're within your lender's penalty-free switching window (often the last few months of your deal) — enter that charge in the exit fee field to see if switching early still pays off.
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