Advanced options
The big saving isn't switching deal-to-deal: it's not LAPSING onto the Standard Variable Rate when a fix ends (SVRs run 2-4% above new deals: on GBP 180k that's GBP 3,000-7,000/yr of pure inattention). Start the remortgage 6 months before the fix ends (offers last that long: you can ditch them if better appears). Fee maths: the GBP 999-fee low-rate deal beats the fee-free deal on big balances and loses on small ones: always compare total cost over the deal term, and a product-transfer with your own lender (no conveyancing) is the low-effort benchmark to beat.
What The Remortgage Savings Calculator Works Out
- Interest saved per year: the balance multiplied by the gap between your current rate and the new rate. GBP 180,000 moving from 6.5% to 4.6% saves about GBP 3,420 a year, or GBP 285 a month, before fees.
- Net of fees: the first-year saving minus the new deal's fees, and the number of months it takes the saving to earn those fees back. Arrangement fees run from GBP 0 to about GBP 1,500; on typical balances they pay for themselves within a few months.
- The SVR trap: when a fix ends the loan lapses onto the lender's Standard Variable Rate, usually 2% to 4% above new-deal pricing. On GBP 180,000 that is GBP 3,000 to GBP 7,000 a year for doing nothing. Start the remortgage six months before the fix ends: offers last that long and can be dropped if something better appears.
- Monthly payment: current vs new (advanced): the full repayment figure on each rate over your remaining term, which is what you will actually see change on your bank statement. The simple interest saving overstates the payment drop slightly because lower rates also shift more of each payment into capital.
- Saving over the deal (advanced): a month-by-month run of both mortgages for the length of the new deal (two and five-year fixes are the norm), counting payments made plus the difference in balance left at the end, less fees and any early repayment charge. This is the total-cost comparison rate-led advertising skips.
- Fees paid upfront or added to the loan (advanced): adding fees to the balance avoids finding cash now but means paying interest on them. The cost-of-adding-fees card shows the extra interest over the remaining term, typically GBP 500 to GBP 1,000 on a GBP 999 fee over 20 years.
- Early repayment charge (advanced): leaving a fix early usually costs 1% to 5% of the balance, stepping down each year. Paying it only makes sense in violent rate moves; the deal-saving card tells you whether the switch still comes out ahead.
- Fee-free alternative (advanced): enter the rate on a no-fee deal and the calculator says which costs less over the deal term. The fee-paying low-rate deal tends to win on balances above roughly GBP 150,000 and lose on smaller ones.
- Product transfer benchmark: switching deal with your existing lender needs no conveyancing or affordability re-test and takes minutes online. It is the low-effort option every open-market remortgage must beat. Not financial advice.