Remortgage Calculator
Our remortgage calculator provides an instant estimate of what your remortgage payments could be. Remortgage calculators are essential when searching for a new deal.
There are several reasons to consider remortgaging your property. It might be to lower your monthly payments, release equity, or change your mortgage terms for greater flexibility. Switching to a better deal can save you thousands of pounds.
How much can you save by remortgaging?
The savings from remortgaging depend on factors such as:
- Your remaining mortgage balance
- The interest rate
- And the term length
Evaluating these elements is crucial when considering a new mortgage deal.
Remortgage FAQs
How does remortgaging work?
Remortgaging allows you to switch from your current mortgage to a new one without moving home. This new mortgage can be with your current lender or a different one. Typically, people remortgage when their existing mortgage term ends, their fixed rate period concludes, or better deals become available.
How accurate are remortgage calculators?
Even the most sophisticated remortgage calculators on the web are designed to provide a basic indication of the options available. As there are dozens of important factors to take into account when calculating and issuing home loans, the information provided by an online remortgage calculator cannot be guaranteed 100% accurate.
Instead, calculators like these should be used to gain an overall idea of the affordability of a typical refinancing. After which, an obligation-free consultation should be organised with a broker to discuss your requirements and the available options in more detail.
How much can I borrow if I remortgage?
Most refinance loans are taken out to repay the outstanding balance on an existing mortgage. If you still have £100,000 to pay on a £250,000 home loan, you would typically apply for £100,000 (plus extra for legal fees and admin costs, if applicable).
Remortgages can also be used to raise money against a property that is without a current mortgage.
It is also possible to apply for more, in accordance with the value of your home and your intentions for the money. As the refinance loan will be secured against your home, its value will be a primary determining factor.
Most lenders conduct the usual financial background checks and credit history analysis when considering applications for refinance. Sub-prime options are available for applicants with imperfect credit, though are often accessible exclusively with broker support.
How much does it cost to remortgage?
It depends entirely on the lender you work with but a good remortgage deal has the potential to save you a lot of money. One thing to remember is that your current lender could charge you an early exit fee if you are repaying your mortgage within an agreed term. The extent of the repayment cost varies significantly from one lender to the next.
Administration costs and arrangement fees may also apply with your new lender which is one of many reasons why it is important to shop around for a good deal. Many of the costs of taking out a conventional mortgage also apply when refinancing your home, therefore should be discussed with a broker before applying.
When should I remortgage?
You have the option of remortgaging at any time. However, if you haven’t reached the end of your fixed or discount rate term, you may incur an early repayment charge. Typically, people choose to remortgage once their fixed or discount rate term concludes, as this is often when their mortgage terms become less favourable.
Remortgaging for a more favourable interest rate
When you secure a new mortgage, it often comes with an introductory offer.
These introductory offers typically feature a low fixed or discounted rate, or a low tracker rate, for the initial few years of your mortgage term.
Such introductory deals generally last between two and five years.
After this period, you’ll likely be transferred to your lender’s standard variable rate, which tends to be higher than the rates you might find elsewhere.
Therefore, once your introductory period concludes, it’s wise to review the market to determine if refinancing could save you money.
However, if your remaining mortgage balance is quite small, the potential savings from switching might not justify the effort.
Why it pays to switch and when it doesn’t
How do you know if remortgaging will get you a better deal? You may compare the total sums you’d pay over the set time, monthly payments, and interest depending on whether you stick with your current contract or choose one of the two remortgaging choices below.
Both Options 1 and 2 save you money when compared to continuing with your prior agreement. The arranging charge for Option 2 makes it more expensive than Option 1.
|
Mortgage of £175,000
|
Current Deal
|
Option 1
|
Option 2
|
|---|---|---|---|
| Loan term |
20 years
|
20 years
|
20 years
|
| Fixed period interest |
5%
|
3%
|
3%
|
| Arrangement fee |
0
|
0
|
£2000 (added to loan)
|
| Total loan cost |
£291.196
|
£271.719
|
£274,824
|
| Total interest charge |
£116,196
|
£96,719
|
£97,824
|
| Monthly repayment |
£1,115
|
£971
|
£982
|
| 5-Year fixed cost with interest |
£69,295
|
£58,233
|
£58,898
|
If you switch your mortgage before your current deal ends, you may incur an ‘early repayment charge.
The total cost of credit assumes that all mortgage-related costs are paid up front and not added to the mortgage. These expenses differ between suppliers and, if included in the loan, may increase your repayments. The cost during the agreement time implies that the initial rate remains constant and reverts to the lender’s standard variable rate (SVR) of 6%. This calculator is for a repayment mortgage and calculates monthly interest. The results are for daily interest when only one payment is made per month, and the numbers have been rounded.
Need help with remortgaging?
Remortgaging can be complex and time-consuming, but our partners at UK Property Finance are here to assist you throughout the process.
At UK Property Finance, we understand how complex and confusing the refinancing process can seem. As an independent broker, we are able to provide the honest, impartial and objective advice you need to make the right decision for your financial future.
Use our exclusive online remortgage calculator for a brief overview of the options available, or call anytime for an obligation-free consultation with a member of the team. We will compare the market in its entirety to find you an unbeatable deal, with absolutely no obligation to go ahead at any time.