Remortgage Comparison Calculator

A remortgage can save money, but the lowest rate is not always the cheapest deal once fees are included. This UK remortgage comparison calculator compares your current rate with a new deal, including product fees and exit costs. It shows the monthly difference, total saving over your chosen period and how long the new deal takes to break even.

How to use this remortgage calculator

Enter your mortgage balance, remaining term, current rate or standard variable rate, new deal rate, product fee, exit fees and the period you want to compare. If you do not know your remaining mortgage balance, check your latest lender statement. For a wider home budget, use our mortgage calculator, mortgage overpayment calculator and mortgage affordability calculator.

The formula explained in plain English

The calculator uses the standard repayment mortgage formula for both the current deal and the new deal. It spreads the balance across the remaining term, applies the annual interest rate as a monthly rate, then estimates the monthly payment. It adds the new product fee to the new borrowing for the comparison and adds exit fees to the total cost. The break-even point is total upfront fees divided by the monthly saving.

Worked example

Suppose your mortgage balance is £220,000 with 25 years left. Your current rate is 6.5%, and a new deal is 4.8% with a £999 product fee and no exit fee. The current payment is about £1,486 a month. The new payment, with the fee added to the balance, is about £1,267 a month. That is a monthly saving of about £219. Over 2 years, the saving after the fee is roughly £5,256, and the break-even point is about 4.6 months.

Common mistakes people make

The first mistake is comparing rates but ignoring fees. A slightly higher rate can be cheaper if the fee is much lower. The second mistake is forgetting early repayment charges. The third is comparing over the full mortgage term when the deal only lasts 2 or 5 years. For more context, read our mortgage deposit guide and mortgage affordability guide.

Related calculators

Use the mortgage calculator for a simple repayment estimate, the mortgage overpayment calculator to test paying extra, the mortgage affordability calculator for borrowing range estimates, and the stamp duty calculator if you are moving rather than staying put.