UK Remortgage Calculator
Compare your current mortgage deal with new rates and see how much you could save
Current Mortgage Details
£
£
%
years
New Mortgage Options
%
£
£
£
%
What is Remortgaging?
Remortgaging means switching your existing mortgage to a new deal, either with your current lender or a different one. When your current mortgage deal ends, you typically move onto your lender’s Standard Variable Rate (SVR), which is usually significantly higher than promotional rates. Remortgaging allows you to secure a better interest rate, potentially saving hundreds of pounds per month.
Key Reasons to Remortgage
- Secure a lower interest rate when your current deal expires
- Avoid moving onto your lender’s SVR, which averages 7.2% in 2025
- Release equity from your property for home improvements or other purposes
- Reduce your monthly payments by extending your mortgage term
- Switch from interest-only to repayment mortgage, or vice versa
- Consolidate debts by borrowing additional funds
Popular Remortgage Scenarios in 2025
| Scenario | Current Rate | New Rate | Monthly Saving (£250k Balance) |
|---|---|---|---|
| Fixed Rate Ending → New Fixed | 2.5% | 4.5% | -£264 increase |
| SVR → 5-Year Fixed | 7.2% | 5.0% | £346 saving |
| SVR → 2-Year Fixed | 7.2% | 4.8% | £375 saving |
| Tracker → Fixed Rate | 6.5% | 4.9% | £254 saving |
Mortgage Payment Calculations
Repayment Mortgage Formula
Monthly payments on a repayment mortgage are calculated using:
M = P × [r(1 + r)^n] / [(1 + r)^n – 1]
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of monthly payments (years × 12)
Interest-Only Mortgage Formula
Monthly payments on an interest-only mortgage are simpler:
M = P × (Annual Rate / 12)
The principal amount remains unchanged throughout the term and must be repaid at the end.
Loan-to-Value (LTV) Calculation
LTV = (Outstanding Mortgage Balance / Property Value) × 100
Lower LTV ratios typically qualify for better interest rates. Common LTV thresholds are 60%, 75%, 80%, 85%, and 90%.
Current UK Mortgage Market Overview
As of November 2025, the UK mortgage market has seen significant changes. The Bank of England base rate influences mortgage rates across all lenders. Average SVR rates have risen to approximately 7.2%, making remortgaging increasingly attractive for homeowners coming off fixed-rate deals.
Important Note: Most fixed-rate mortgages include Early Repayment Charges (ERCs) ranging from 1% to 5% of the outstanding balance. These typically apply if you remortgage before your current deal ends. Always calculate whether the potential savings outweigh any ERC you might need to pay.
Remortgage Process Timeline
| Stage | Typical Duration | Key Actions |
|---|---|---|
| Research & Application | 1-2 weeks | Compare rates, submit application, provide documents |
| Mortgage Offer | 2-3 weeks | Lender reviews application, conducts valuation |
| Legal Work | 2-4 weeks | Solicitor handles legal transfer and searches |
| Completion | 1 day | New mortgage activated, old one repaid |
Factors Affecting Your Remortgage Rate
- Loan-to-Value Ratio: Lower LTVs receive better rates. Every 5% improvement can reduce rates by 0.1-0.3%
- Credit Score: Excellent credit (750+) qualifies for best rates, while poor credit may limit options
- Income Verification: Lenders typically require proof of stable income at 4-5 times the loan amount
- Property Type: Standard houses get better rates than flats, new builds, or ex-council properties
- Employment Status: Employed applicants often get better rates than self-employed or contractors
- Existing Relationship: Current customers may receive loyalty discounts or faster processing
Types of Remortgage Products
| Product Type | Advantages | Considerations |
|---|---|---|
| 2-Year Fixed Rate | Lower rates, flexibility after 2 years | Need to remortgage again sooner, potential rate changes |
| 5-Year Fixed Rate | Long-term certainty, protection from rate rises | Slightly higher rates, longer ERC period |
| Tracker Mortgage | Follows Bank of England base rate, can benefit from cuts | Payments can increase if base rate rises |
| Discount Variable | Lower than SVR, some flexibility | Lender can change SVR at any time |
Frequently Asked Questions
When should I start looking to remortgage?
Start your remortgage search 3-6 months before your current deal ends. This gives you time to compare rates, submit applications, and complete the process before moving onto your lender’s SVR. Most lenders allow you to lock in a rate up to 6 months in advance.
How much does remortgaging cost?
Typical remortgaging costs include product fees (£0-£1,500), valuation fees (£0-£500), legal fees (£200-£500), and potentially early repayment charges if leaving your current deal early. Some lenders offer free valuation and legal work, though rates may be slightly higher. Total costs typically range from £500 to £3,000.
Can I remortgage with bad credit?
Yes, but your options will be more limited and rates higher. Specialist lenders work with borrowers who have County Court Judgements (CCJs), defaults, or missed payments. Building up at least 3-6 months of clean payment history and improving your LTV can help secure better rates. Consider working with a mortgage broker who specializes in adverse credit.
What is the difference between remortgaging and product transfer?
A product transfer means switching to a new deal with your existing lender, while remortgaging involves switching to a different lender. Product transfers are usually quicker (2-4 weeks) with minimal costs, but you can only choose from your current lender’s rates. Remortgaging takes longer (6-8 weeks) but allows you to access the entire market for potentially better rates.
Should I use a mortgage broker for remortgaging?
Mortgage brokers can save you time and potentially money by comparing deals across multiple lenders, including some exclusive rates not available directly. They charge either a flat fee (£300-£1,000) or receive commission from the lender. Brokers are particularly valuable if you have complex circumstances, are self-employed, or want access to the whole market.
Can I release equity when remortgaging?
Yes, you can borrow additional money when remortgaging if you have sufficient equity in your property. This increases your loan amount and LTV ratio, which may affect the interest rate you can access. Typical purposes include home improvements, debt consolidation, or large purchases. Lenders usually allow borrowing up to 85-90% LTV for standard remortgages.
What happens if I don’t remortgage when my deal ends?
You automatically move onto your lender’s Standard Variable Rate (SVR), which averages 7.2% in 2025 compared to fixed rates of 4.5-5.5%. On a £200,000 mortgage, this could increase monthly payments by £300-400. While there’s no obligation to remortgage, staying on SVR typically costs significantly more over time.
How does my credit score affect remortgage rates?
Credit scores significantly impact available rates. Excellent credit (720+) qualifies for best rates, good credit (650-720) receives standard rates with most lenders, fair credit (550-650) limits choices and increases rates by 0.5-1%, and poor credit (below 550) requires specialist lenders with rates 2-3% higher than standard. Check your credit report 3 months before applying and correct any errors.
References
Bank of England (2025). Official Bank Rate. Available at: www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
Financial Conduct Authority (2025). Mortgages and Home Finance: Conduct of Business Sourcebook. FCA Handbook, MCOB.
UK Finance (2025). UK Mortgage Trends Report Q3 2025. UK Finance Publications.
Money Advice Service (2025). Remortgaging Guide. MoneyHelper, Government-backed financial guidance.
HM Revenue & Customs (2025). Stamp Duty Land Tax: Residential Property Rates. GOV.UK Official Guidance.
Building Societies Association (2025). Mortgage Market Analysis and Member Lending Statistics. BSA Research Publications.