Remortgage Calculator: Monthly Saving, Break-Even Month and Total Cost
Our LTV calculator works out your loan to value ratio for any UK mortgage in seconds. Enter the property value and the loan amount, and the tool returns your LTV as a percentage. That number drives which lender bands you can borrow within, which interest rate tiers you qualify for, and how much deposit you need to move to the next band. Use it to plan a purchase, sense-check a remortgage or compare options before applying.
For a free initial consultation about your LTV and mortgage options, call 01202 155992 or contact Mortgage One.
Remortgage Calculator
| Current monthly payment | |
|---|---|
| New monthly payment | |
| Total switching costs | |
| Break-even point | |
| Net saving over the deal | |
| Interest paid over the deal, current rate against new rate |
| Rate | Monthly payment | Saving against 7.13% | Interest over 24 months |
|---|---|---|---|
| 7.13% average standard variable rate | £1,566 | – | £27,872 |
| 5.63% average 2-year fixed | £1,391 | £176 a month | £21,914 |
| 4.49% 2-year fixed at 60% LTV, £999 fee | £1,264 | £302 a month | £17,412 |
Averages from Moneyfacts at the start of August 2026. The 4.49% rate is HSBC's 2-year fixed at 60% LTV checked on 1 September 2026. At £302 a month the £999 fee is recovered inside four months. Rates change without notice.
This tool compares the monthly cost of your current mortgage rate with a new rate on the same balance and remaining term, on a capital repayment basis, and sets any fees and early repayment charge against the monthly saving. The figures are indicative only. Lenders calculate interest daily, may add fees to the loan, and price by loan-to-value band and product. Always speak with a qualified mortgage adviser before relying on these figures. For expert advice, contact Mortgage One.
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Leave the fee and charge fields at zero if your deal has already ended and you are paying the standard variable rate, because there is nothing to set against the saving and the break-even is immediate. If you are still inside a fixed deal, the early repayment charge printed in your mortgage offer belongs in the costs field, and the calculator will tell you whether moving now or reserving a rate for later is the better route.
How the remortgage calculator works out your saving
The calculator prices both rates on the same balance and remaining term on a capital repayment basis, so the only variable is the interest rate. The difference between the two monthly payments is the saving. Multiplying that by the months in the new deal and subtracting fees and charges gives the net figure and the break-even month.
The monthly payment on a repayment mortgage depends on three things: the balance, the rate and the term. Holding the balance and term fixed isolates the rate, which is the honest way to compare a switch. A lender's own quote can look better because it quietly extends the term, and a longer term always lowers the monthly figure while raising the total interest, so the calculator does not do that for you.
The interest row is the one to read twice. Over a 2-year deal on £200,000 with 20 years left, the difference between paying 7.13% and 4.49% is more than £10,000 of interest, even though the monthly gap is £302. That row is where the reversion rate does its damage, and our standard variable rate guide explains why every lender's default rate sits so far above its fixed deals.
What does a remortgage cost and when do you break even?
A remortgage can carry a product fee, £995 to £1,499 on big-six fee-paying products at our September 2026 checks, plus valuation, legal and exit fees, and an early repayment charge if you leave a fixed deal early. Break-even is those costs divided by the monthly saving. At £302 a month, a £999 fee is recovered in month 4.
The early repayment charge is the cost that changes the answer. It is set as a percentage of the balance you repay, it usually steps down each year of the fix, and most lenders let you overpay 10% of the balance a year without triggering it. Add it to the costs field and the calculator pushes the break-even month out. On the example below, a £2,000 charge moves break-even from month 4 to month 10, still inside a 2-year deal. If the rate you pay is lower than the new rate, the calculator shows the switch costing you money rather than saving it.
Many remortgage products include a free valuation and a free legal package, so those two lines are often zero. What is rarely zero is the exit or administration fee on the old mortgage, which sits on your current lender's tariff of charges and belongs in the costs field too. Our remortgage advice guide sets out every fee line and the timing of each one.
Worked example: £200,000 moving off a 7.13% variable rate
On a £200,000 balance with 20 years left, the average standard variable rate of 7.13% costs £1,566 a month. The average 2-year fixed at 5.63% costs £1,391, a saving of £176. A 4.49% 2-year fixed at 60% LTV with a £999 fee costs £1,264, saving £302 a month and £6,250 over the deal after the fee.
The averages come from Moneyfacts at the start of August 2026, when the average 2-year fixed stood at 5.63%, the 5-year at 5.66% and the standard variable rate at 7.13%, figures our current UK mortgage rates page tracks each month. The 4.49% rate is the 2-year fixed at 60% LTV on our HSBC mortgage rates page, checked on 1 September 2026 with a £999 booking fee, and the same round of checks found the big six reversion rates running from 6.24% at HSBC to 7.24% at Halifax.
The gap between the two fixed rates in the example is the loan-to-value effect. A borrower at 60% LTV sees the sharpest pricing, while the average blends every band up to 95%. Repayments made and price growth since you last fixed can move you down a band without any new deposit, which is why it is worth running our LTV calculator before you pick the rate to enter above.
To have these figures rebuilt on your own balance, band and lender quotes rather than the market average, call 01202 155992 or contact Mortgage One.
Product transfer or remortgage: which does the calculator favour?
Run both. A product transfer with your current lender usually has no valuation, legal work or affordability check, so the costs field is close to zero and break-even is fast. A remortgage to a new lender opens the whole of market and can win on rate, on extra borrowing or on a lower loan-to-value band once fees are included.
Enter your lender's switch offer first, then the sharpest whole of market rate you qualify for, and compare the net saving line rather than the headline rate. Retention pricing is one lender's view on one day. At our September 2026 checks NatWest, Nationwide and Halifax each opened their switch windows about four months before a deal ends, with no affordability check on a like-for-like switch, so the offer arrives with time to compare it. Our product transfer guide covers the mechanics, and the timing question of when to reserve is answered in the next section.
When should you run the numbers before your deal ends?
Six months before your deal ends. Most lenders let you reserve a new rate up to six months ahead and a mortgage offer is usually valid for six months, so you can lock a rate now and still take a lower one if pricing falls before completion. The calculator shows what that reservation is worth against your reversion rate.
Reserving early is close to a one-way option: the rate you secure starts when the current deal finishes, and most lenders allow a switch to a cheaper product before then. The Bank of England held Bank Rate at 3.75% on 30 July 2026 on a 6-3 vote, with three members voting for a rise, and the next decision is on 17 September 2026. Our rate forecast tracks the market-implied path, which points to a rise rather than a cut from here, so the cost of waiting for a better rate is not a theoretical one.
Limits of the figures: LTV bands, fees added to the loan and term
The calculator assumes the fee is paid up front, the term stays the same and the rate you enter is one you qualify for. Adding a £999 fee to a £200,000 loan at 4.49% costs about £6 a month more over 20 years, roughly £1,515 in total, and your loan-to-value band decides which rates are open to you.
Most lenders charge interest daily and the calculator works monthly, so its figures will differ from a lender's illustration by a few pounds. A change of term moves every figure, so keep the term constant when you compare rates. It also cannot see your band. Rates step at 60%, 75%, 80%, 85%, 90% and 95% loan to value, and our UK mortgage rates chart shows the average 2 and 5 year fixed in each band, so you can read where your own figure sits before you enter a new rate. If a revaluation or an overpayment would drop you a band, the saving is larger than the calculator shows.
For a free initial consultation that turns the calculator's estimate into a sourced quote from across the whole of market, call 01202 155992 or contact Mortgage One.
The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you'd like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.
FAQs
1. How much could I save by remortgaging?
It depends on the gap between the rate you pay and the rate you move to. On a £200,000 balance with 20 years left, moving from the 7.13% average standard variable rate to a 4.49% 2-year fixed saves £302 a month, or £7,249 over the deal before a £999 fee. If the rate you pay is lower than the new rate, the calculator shows a cost rather than a saving.
2. How much does it cost to remortgage?
A product fee of £995 to £1,499 on the big six lenders' fee-paying products at our September 2026 checks, plus any valuation, legal and exit fees, and an early repayment charge if you leave a fixed deal early. Many remortgage products include a free valuation and free standard legal work, and a product transfer with your existing lender usually has no valuation or legal cost at all.
3. Is it worth paying an early repayment charge to remortgage early?
Only when the monthly saving multiplied by the months left on your current deal exceeds the charge plus the new fees. The charge is a percentage of the balance repaid and usually steps down each year, so the same switch can fail the test today and pass it in six months. Enter the charge in the calculator and read the break-even row.
4. When can I remortgage?
At any time, but the early repayment charge decides whether it pays. Once a fixed or discounted deal ends you are on the standard variable rate with no charge to leave. Most lenders let you reserve a new rate up to six months before the current deal ends, and NatWest, Nationwide and Halifax open their switch windows about four months out.
5. Is a product transfer cheaper than a remortgage?
Often on fees, not always on total cost. A like-for-like product transfer usually has no valuation, legal or affordability check, so the switching costs are near zero. A remortgage compared across the whole of market can still win once a lower rate, a lower loan-to-value band or extra borrowing is included, which is why both belong in the calculator.
6. What happens if I do nothing when my fixed rate ends?
Your mortgage moves onto the lender's standard variable rate from the first payment after the deal ends. At our September 2026 checks the big six reversion rates ran from 6.24% at HSBC to 7.24% at Halifax, against 2-year fixed rates from 4.34% at 60% LTV, and the market average standard variable rate was 7.13% at the start of August. On £200,000 with 20 years left that gap is roughly £300 a month.
7. Do I need a broker to remortgage?
No, you can apply direct or take your lender's switch offer, but a broker prices that offer against the rest of the market on the same day, checks the fee-paying rate against the fee-free version, and can place a case where income, property or credit has changed since you last applied. Mortgage One is a whole of market mortgage adviser and the initial consultation is free.