Remortgage calculator

What your result means

Estimate the payment on a replacement repayment mortgage, then compare the term and fees as well as the monthly figure. A smaller payment is not automatically a cheaper mortgage.

Compare scenarios by changing one input at a time. The glossary explains the technical words used on this page.

Estimated new monthly repayment

The capital-and-interest payment on the entered mortgage balance at the new rate and term. Fees are not added to this balance.

Loan to value

The mortgage balance divided by property value, shown as a percentage.

Total interest

All modelled interest over the full new term at the entered rate.

Fee-adjusted total cost

All new monthly repayments plus the product and arrangement fees entered. It includes repayment of the original balance, not just the cost of borrowing.

Monthly saving

The current payment minus the calculated new payment, with negative results shown as £0. It excludes fees and is not a lifetime saving.

Methodology: how the calculation works

We apply a standard amortisation calculation to the balance you enter and treat the fee as a separate upfront payment.

1. Convert the annual interest percentage to a monthly rate and the new term to months.
2. Calculate equal monthly capital-and-interest repayments on the mortgage balance. At 0%, divide the balance by the months.
3. Multiply the unrounded monthly amount by the number of months. Subtract the starting balance for total interest and add the fee for fee-adjusted total cost.
4. Calculate loan-to-value from balance ÷ property value. Compare the new monthly payment with the current payment without subtracting fees from the monthly difference.

The assumptions behind your estimate

• The entered rate stays unchanged for the full term, not just an initial deal period. The pre-filled rate is an illustration, not a live offer.
• Payments occur at the end of each month. Daily interest, irregular dates, missed payments and changes of rate are not modelled.
• Money is displayed to the nearest pound. Totals use unrounded calculations, so multiplying the displayed payment by the number of months can differ from the displayed total.
• Fees are paid separately and do not attract interest in this model. If a lender adds them to the loan, its repayments and total interest will differ.
• The entered balance is the entire replacement loan. Property value affects LTV, but does not automatically change the rate or prove eligibility.

Two simple worked examples

Both examples use a £180,000 balance on a £300,000 property, a 25-year new term, £999 upfront fees and a current monthly payment of £1,200. Only the new annual interest rate changes.

A closer look: rate, fees and a longer term

These are full-term illustrations, not a comparison of available deals. The current payment is £1,200 throughout; the property and balance are unchanged.

On a small screen, swipe the table sideways to see every figure.

Compare A and B to separate the lower rate from the higher upfront fee. Compare B and C to see the trade-off between monthly payments and full-term interest. In D, check the new payment itself: a £0 saving does not mean the payment stayed the same. None of these rows calculates savings over an initial two- or five-year deal.

Examples use the stated assumptions and the existing calculator’s rounding. They are illustrations, not product offers, personalised recommendations or guarantees.

What the estimate does not include

• Legal and valuation fees, early repayment charges on the old mortgage and any costs not entered in the fee field.
• Interest on fees added to the mortgage, cashback, later rate changes and the remaining total cost of your current arrangement.
• Lender affordability, credit checks and any guarantee that the assumed rate or term is available.

Remortgage glossary: the words explained

Plain-English definitions of the finance, calculation and technical terms used on this page. Dotted links take you directly to the relevant definition.

Affordability / affordability check

An assessment of whether payments fit income, spending and other financial commitments. This tool does not perform that assessment.

Amortisation

Paying off borrowing gradually through regular payments covering interest and some capital. With a constant rate and payment, the interest share reduces as the balance falls.

Annual / monthly rate

Annual means per year; monthly means per month. A monthly rate is not interchangeable with an annual rate. The methodology explains this tool’s conversion.

APRC (annual percentage rate of charge)

A mortgage cost-comparison percentage including interest and applicable fees over the full term using specified assumptions. It is not the interest-rate input.

Arrangement fee / product fee / lender fee

A charge for setting up or providing a financial product, separate from interest. A percentage fee needs a stated base amount.

Balance / outstanding balance

The money held in an account, or the amount still owed on a loan, at a given time.

Broker / credit broker / broker fee

A business that introduces customers to finance providers or helps arrange finance, rather than lending the money itself. A broker fee is a charge for that service.

Capital / principal / amount borrowed

The original money borrowed, separate from interest. Paying back capital reduces the outstanding loan.

Cash flow

Money coming into and going out of a business or household over time. A low payment does not by itself show that borrowing is affordable.

Cashback

Money a provider may pay back under a deal’s conditions. It is not deducted in this calculation.

Credit / finance / borrowing

Money made available to borrow and repay later, usually with interest or charges.

Credit check / credit status / credit history

A check of information about past borrowing and repayments, and the financial record it describes. Providers may use it when assessing an application.

Deposit

Money contributed towards a purchase without borrowing it. Here it reduces the amount financed.

Early repayment charge / early settlement charge

A charge that may apply when some or all of borrowing is repaid ahead of schedule. The agreement sets out any conditions and limits.

Eligibility / lender criteria

The requirements a provider sets for an application. A calculated repayment does not show that an applicant qualifies.

Estimate / illustration / projection

A result based on stated inputs and assumptions, not a promise of what will happen or a provider’s offer.

Fee-adjusted total cost

This tool’s full-term repayments plus the separate fee entered. It includes capital and interest; it is not the saving from switching.

Financial Conduct Authority (FCA) / authorised and regulated

The UK financial-services regulator named in the site footer. Authorisation gives a firm permission for specified activities; regulation means it must follow the applicable rules.

Fixed rate / deal period

A fixed rate stays unchanged for an agreed period. That period may be shorter than the whole loan term.

Interest / interest rate

Interest is a charge for borrowing or a return paid on savings. The rate expresses it as a percentage over a stated period.

Interest-only

Regular payments cover interest without paying back the original loan. The capital must be repaid separately, usually at the end.

Legal fees

Charges for legal work involved in a purchase or finance arrangement.

Lender / provider

The organisation supplying a loan or financial product and setting its terms.

Loan-to-value (LTV)

The loan as a percentage of the property value: loan ÷ value × 100. This tool uses the values entered, not a lender’s valuation.

Methodology

The calculation method, steps and assumptions behind an estimate.

Monthly saving

The positive monthly payment reduction, before fees. This tool shows £0 rather than a negative number when the new payment is higher.

Mortgage / secured borrowing / security

A loan backed by an asset such as property. Security is the asset a lender may use to recover unpaid borrowing through the applicable legal process.

Overpayment / one-off payment / lump sum

An amount paid in addition to the regular amount due. A one-off payment or lump sum is paid once; a monthly overpayment repeats.

Property price / property value

Price is the amount paid; value is an assessment of what a property is worth. They can differ.

Quote / finance offer

Proposed prices and conditions from a provider. It is different from an illustration and may still depend on checks or conditions.

Remortgage

Replacing an existing mortgage on a property with a new one, commonly from a different lender.

Repayment / monthly payment

Money paid back to a lender. A capital-and-interest payment covers interest and reduces the amount borrowed. An interest-only payment does not reduce it.

Repossession

The legal process by which a lender can take possession of an asset after repayments are not kept up. It may be sold to recover money owed.

Rounding / unrounded

Shortening a number for display. An unrounded calculation keeps the more precise value when working out totals.

Term / repayment period

The length of time over which the calculation runs. For borrowing, it is the planned repayment period, not necessarily the length of an introductory rate deal.

Total interest

All the interest in the calculation, excluding the original loan and any separately stated fees.

Total repayable / total payable

The combined amounts counted by this tool. Read the results explanation to see whether fees, deposits or a final capital payment are included.

Upfront fee / upfront payment

Money paid at the start instead of added to the loan or paid at the end.

Valuation / valuation fee

An assessment of what a property is worth and any charge for it. This is not a detailed survey of its condition.

Frequently asked questions