Remortgage Calculator UK 2026

When Does Remortgaging Make Sense?

Remortgaging makes the most obvious sense when your current fixed-rate deal is about to expire. Once you move onto your lender's standard variable rate (SVR), you are almost certainly paying more than you need to. The average SVR in early 2026 sits around 7.5–8.0%, while competitive two-year fixes are available below 4.5% and five-year fixes below 4.2%. On a £200,000 mortgage with 20 years remaining, the difference between 7.5% and 4.2% is roughly £400 per month.

Even if you are not at the end of your deal, it can still be worth running the numbers. If rates have fallen significantly since you locked in, the savings from a lower rate may outweigh the early repayment charge. The break-even calculation in this tool helps you work that out.

You should also consider remortgaging if your property has increased in value. A lower loan-to-value (LTV) ratio typically unlocks better rates. For example, moving from 80% LTV to 60% LTV could shave 0.3–0.5 percentage points off the rate offered to you.

Understanding Early Repayment Charges

An early repayment charge is the fee your current lender charges if you exit the deal before the end of the agreed period. ERCs are usually expressed as a percentage of the outstanding balance — for example, 3% in year one, 2% in year two, 1% in year three. On a £200,000 balance, a 2% ERC would cost £4,000.

This calculator includes a break-even analysis: it divides the ERC by your monthly savings to show how many months it takes for the savings to cover the charge. If the break-even period is comfortably shorter than your remaining mortgage term, switching is likely worthwhile. If the break-even is close to or longer than the new deal period, you may be better off waiting until your current deal ends.

Remember that some remortgage products include cashback or fee-free options that can offset the ERC partially. A mortgage broker can help you find the best overall package.

Fixed vs Variable: Choosing Your New Rate

When you remortgage, you will typically choose between a fixed rate (locked for 2, 3, 5 or 10 years) and a variable rate (tracker or discount). Fixed rates offer payment certainty — your monthly amount stays the same regardless of Bank of England base rate changes. Variable rates can be lower initially but carry the risk of increasing if the base rate rises.

In the current environment, with the BoE base rate at 4.5% (as of early 2026), many borrowers prefer the certainty of a fix. However, if you believe rates will fall further, a tracker mortgage could save you money over time. Use this calculator to model different scenarios by changing the new rate input.

Costs Beyond the Interest Rate

While this calculator focuses on the rate comparison, there are other costs to factor into your decision:

• Arrangement fee: Typically £500–£1,500. Some lenders offer fee-free products at a slightly higher rate.
• Valuation fee: Many remortgage deals include a free valuation. Otherwise expect £150–£400.
• Legal fees: Many lenders offer free legal work on remortgages. If not, budget £300–£500.
• Broker fee: If you use a fee-charging broker, this is typically £300–£500. Many brokers are fee-free and earn commission from the lender instead.

Add these costs to any ERC and compare the total against your projected savings to get the true picture.