REMORTGAGE COMPARISON CALCULATOR

Understanding Remortgage Comparison for 2026/27

Remortgaging — switching your mortgage to a new deal, either with your current lender or a new one — is one of the single biggest money-saving opportunities for UK homeowners. But it’s also one of the most misunderstood. The headline monthly payment difference is rarely the full story, because a proper remortgage comparison must account for arrangement fees, valuation fees, legal costs, and — crucially — any Early Repayment Charge (ERC) on the existing deal.

A typical £250,000 mortgage saving 1% on interest rate looks like a win of roughly £2,500 per year in reduced interest. But if the new deal has a £1,999 arrangement fee and the existing fix still has 18 months to run with a 2% ERC (£5,000), the real break-even takes nearly three years — and might not be worth it at all. The remortgage calculator above handles this properly: it takes your current balance, remaining months on any fix, ERC percentage, new rate, and new fee, then shows the net saving or loss, plus the fee break-even time.

The best remortgage strategy is usually to start shopping 6 months before your current fix ends. Many lenders let you lock in a new rate up to 6 months in advance without paying until completion, so you can dodge rising rates. If you’re mid-fix with significant ERC, check if a "product transfer" with your existing lender (usually no fees, no ERC, but possibly higher rates) beats a full remortgage. The calculator models all three paths cleanly.

Key Figures for the 2026/27 Tax Year

• Typical arrangement fee: £0 to £2,000 depending on lender
• Typical ERC range: 1-5% of balance, usually tapered
• Lock-in window for new rates: Up to 6 months before completion
• Minimum equity usually required: 5% (95% LTV) — better rates at 75% LTV or below
• Product transfer vs full remortgage: Transfer: easier, same lender, no re-underwriting
• Valuation cost (if required): £0-£500 depending on lender offer
• Legal costs (if required): Often £0 via lender's panel solicitor

How to Use the Remortgage Comparison Calculator

1. Enter your current outstanding mortgage balance.
2. Enter your current interest rate.
3. Enter the remaining months on your current fix.
4. Enter any Early Repayment Charge percentage.
5. Enter the new deal's interest rate and arrangement fee.
6. Review monthly savings, total savings over the new fix, ERC cost, fee break-even time, and overall verdict (switch now / wait / stay).

Frequently Asked Questions

When is the best time to remortgage?

Start shopping 6 months before your current fix ends. Most lenders allow you to secure a new rate up to 6 months in advance without paying until completion, protecting you from rising rates. If your current rate is above the best new rates and you're still mid-fix, compute whether the ERC is worth paying using the calculator above.

Is it worth remortgaging if I have a high Early Repayment Charge?

Sometimes yes. If your current rate is significantly above market, the savings from a lower rate might outweigh even a substantial ERC. The calculator shows you the break-even point — how many months of lower payments you need to recover the ERC plus any fees. Typically worth considering if the rate differential is 1.5%+ and you have at least 12-24 months left on the current fix.

Should I remortgage or do a product transfer with my existing lender?

Product transfers are faster and cheaper (no fees, no re-underwriting, no ERC), making them attractive if your existing lender's new rates are competitive. Full remortgages usually offer the best market rates but come with arrangement fees, valuations, and legal work. The savings usually justify a full remortgage if the rate difference is 0.2%+ vs your existing lender's product transfer offer.

How does an Early Repayment Charge work?

Most fixed-rate UK mortgages charge an ERC if you repay or remortgage during the fix period. Typical ERCs range from 1% to 5% of the balance, often stepping down each year (e.g., 5% in year 1, 4% in year 2, etc.). Check your current mortgage offer document — the ERC is always specified. The calculator subtracts the ERC from your savings to give the true net benefit.

Can I remortgage to release equity from my home?

Yes — this is called a "remortgage with capital raising". You borrow more than your current outstanding balance and take the difference as cash. Lenders may require you to explain the purpose (home improvements, debt consolidation, etc.), and your loan-to-value ratio matters: the higher the LTV, the fewer and more expensive the products available.

What happens if I remortgage and property prices have fallen?

If your property value has fallen below your outstanding mortgage (negative equity) or pushed you into a higher LTV band, your options narrow. You may not qualify for the best rates or any remortgage at all. In severe cases you're stuck on your lender's Standard Variable Rate or must negotiate a product transfer. Running the calculator with updated property values helps you see the real picture.

Related Calculators

• Mortgage Repayment Calculator — model the full repayment with overpayments and stress test
• BoE Rate Impact Calculator — check how BoE rate moves affect your position
• Stamp Duty Calculator — only relevant if moving home, not remortgaging
• Buy-to-Let ROI Calculator — remortgaging BTL with Section 24 in mind

Official Sources

• Remortgaging — MoneyHelper guide
• Bank of England base rate (current rate)
• FCA consumer mortgage guidance

Last reviewed April 2026. Figures and rules apply to the 2026/27 UK tax year. This tool is for guidance only and does not constitute financial advice.