Remortgage
Calculator UK 2026
Compare your current rate or SVR with a new deal: see the monthly saving, how many months your fees take to pay back, and what a Bank of England rate move would do to your payment.
Read the full answer — method, rates and figures
Quick answer: Remortgaging pays when the monthly saving covers your switching costs before the deal ends: break-even = fees and early repayment charges ÷ monthly saving. Moving £250,000 (20 years left) from the average SVR to the average two-year fix saves about £170 a month.
Market data (Moneyfacts): average two-year fix 5.98% and five-year fix 6.00% on 5 October 2026; average standard variable rate 7.13% on 15 September 2026. Bank Rate is 3.75% (held 17 September 2026); the next Bank of England decision is on 5 November 2026.
Most lenders let you secure a new deal up to six months before your current one ends, and a product transfer with your existing lender usually needs no new affordability check if you are not borrowing more.
Arrangement fee, valuation, legal fees, deeds release
Charged for leaving during a fixed or tracker period, commonly 1-5% of the balance
Monthly saving
£169.61
Break-even
9 months
Net after 2 years
£2,571
New monthly payment
£1,788.19
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Your mortgage, home equity and net worth in one place: Richify tracks the balance next to your home and savings, so the saving shows up as equity.
Monthly saving
£169.61
Break-even
9 months
Net after 2 years
£2,571
New monthly payment
£1,788.19
Detailed breakdown
Full-term figures assume the new rate lasts for the whole term; most deals end after two to five years.
Last reviewed 20 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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The calculator works out your monthly repayment at your current rate and at the new rate, using the standard repayment-mortgage formula lenders use, over the years you have left. The difference is your monthly saving. Your switching costs (fees plus any early repayment charge) divided by that saving is the break-even point in months: before it the switch has cost you money, after it every month is a gain.
Example: £250,000 with 20 years left, moving from the average SVR (7.13%, 15 September 2026) to the average two-year fix (5.98%, 5 October 2026) cuts the payment from £1,957.80 to £1,788.19. With £1,500 of costs that breaks even in 9 months. Most deals last two to five years, so judge a switch on the saving over the deal, not the whole term.
Costs to factor in
The new lender may charge an arrangement (product) fee, often between nothing and £2,000; lower-rate deals tend to carry the higher fees, and adding the fee to the loan means paying interest on it. Many remortgage deals include a free valuation and free legal work. Your current lender may charge a deeds release or exit fee, and if you leave during your fixed or tracker period, an early repayment charge, often the largest cost.
When remortgaging does not pay
A switch rarely pays when an early repayment charge outweighs the saving before your current deal ends, when only a few years of term remain, or when a lower home value has pushed your loan-to-value into a dearer band. Lenders regulated by the Financial Conduct Authority must assess affordability on a new mortgage, so a change in income can limit you to a product transfer. If you are unsure, an FCA-authorised mortgage broker can compare the whole market. See the full repayment schedule for any rate in the UK mortgage calculator.
Sources: Moneyfacts average mortgage rates: fixed-rate averages 5 October 2026; SVR and tracker averages 15 September 2026; Bank of England Monetary Policy Summary (17 September 2026); FCA mortgage conduct rules (MCOB). Figures are market data, not lender quotes, and are computed with this calculator's formula.
Written by Richify's AI agent team and fact-checked against primary sources: see our editorial standards.
Should I remortgage now or wait for the Bank of England?
There is no safe prediction, so size the risk instead: on £250,000 over 20 years, each 0.25-point move in your rate changes the payment by about £36 a month. Bank Rate is 3.75% (held on 17 September 2026); the next decision is on 5 November 2026.
| Rate | Monthly payment | vs average fix |
|---|---|---|
| 5.48% | £1,716.90 | −£71 |
| 5.73% | £1,752.36 | −£36 |
| 5.98% (average) | £1,788.19 | — |
| 6.23% | £1,824.41 | +£36 |
| 6.48% | £1,860.99 | +£73 |
£250,000 repayment mortgage, 20 years left, capital and interest. Centre row: Moneyfacts average two-year fix, 5 October 2026. Illustration only, not a forecast.
Fixed rates are priced off swap markets, which move on expectations before the Bank decides. That is why the average two-year fix rose in September and early October while Bank Rate stood still. Most lenders let you secure a deal up to six months ahead and still switch to a cheaper one before completion, which limits the timing risk.
Product transfer vs remortgage: which is cheaper?
A product transfer keeps you with your lender: usually no valuation, no legal work, and no new affordability assessment if you are not borrowing more. A remortgage to a new lender can find a lower rate but needs a full application. Compare both on rate plus fees.
Run each offer through the calculator above with its own fees. If the remortgage only wins by a small margin, the product transfer's speed and lack of credit checks may be worth more, especially if your income has changed. This is general guidance; each lender sets its own criteria.
What happens if I go onto the SVR?
Your rate moves to the lender's standard variable rate the day your deal ends. The Moneyfacts average SVR was 7.13% on 15 September 2026: on £250,000 over 20 years that is £1,957.80 a month, against £1,788.19 at the 5.98% average two-year fix (5 October 2026) and £1,791.08 at the 6.00% average five-year fix.
With £1,500 of switching costs, leaving the SVR for that two-year fix breaks even in 9 months and leaves about £2,571 ahead after two years. The SVR usually has no early repayment charge, so you can leave it at any time.
When can I lock in a new mortgage deal?
Usually up to six months before your current deal ends; some lenders allow three or four. Securing a rate early does not commit you to it with most lenders: if a cheaper deal appears before completion, you can usually switch.
Time the new deal to start the day after your current one ends, so you pay no early repayment charge and spend no time on the SVR. If you are inside an early repayment charge period, enter the charge in the calculator to see whether leaving early still pays.
Remortgaging to release equity
Borrowing more when you remortgage turns some of your home's value into cash. £30,000 more on £250,000 over 20 years at the 5.98% average two-year fix adds about £215 a month and about £21,500 of interest if that rate held for the full term.
Releasing equity raises your loan-to-value, which can push you into a dearer rate band, and it is secured on your home. Check your home's value against what you owe in the UK net worth calculator first, and see how overpaying shrinks the balance again with the mortgage overpayment calculator.
How to use this calculator
- Enter the balance you still owe, from your latest mortgage statement or banking app.
- Set your current rate. If your deal is ending, enter your lender's SVR (the Moneyfacts average was 7.13% on 15 September 2026).
- Set the new rate you have been offered. The average two-year fix was 5.98% on 5 October 2026 (Moneyfacts); your quote depends on your loan-to-value.
- Enter the years left on your mortgage term.
- Add the switching costs (arrangement fee, valuation, legal work, deeds release) and any early repayment charge, then read the monthly saving and break-even month.
❓ Frequently Asked Questions
When should I remortgage in the UK?
Start comparing deals about six months before your fixed or tracker deal ends, which is how far ahead most lenders let you secure a new rate. If rates fall before completion you can usually switch to a cheaper product.
Avoid drifting onto the standard variable rate: the average SVR was 7.13% on 15 September 2026 against a 5.98% average two-year fix on 5 October 2026 (Moneyfacts), about £170 a month more on £250,000 with 20 years left.
Should I remortgage now or wait for the Bank of England on 5 November 2026?
Nobody knows the decision in advance, so compare the cost of being wrong. On £250,000 over 20 years, every 0.25 points on a rate is about £36 a month.
Fixed rates follow swap markets more than Bank Rate, and they rose in September and early October while Bank Rate stayed at 3.75%. Securing a deal now and switching if rates fall before completion protects you either way with most lenders.
What is the difference between a remortgage and a product transfer?
A product transfer is a new deal with your existing lender: usually no valuation, no legal work and, if you are not borrowing more, no new affordability assessment with most lenders. A remortgage moves you to a different lender, with a full application, valuation and legal work (often free on remortgage deals).
Compare the product-transfer rate with the best remortgage rate after fees; this is general guidance, and each lender sets its own terms.
What happens if I go onto the SVR?
When your deal ends without a new one, your mortgage moves to your lender's standard variable rate. There is normally no early repayment charge on the SVR, so you can leave at any time, but it is usually far dearer: the Moneyfacts average was 7.13% on 15 September 2026.
Every month on it at that rate costs about £170 more than the average two-year fix on £250,000 over 20 years.
Can I remortgage to release equity?
Yes. If your home is worth more than your mortgage, you can borrow more when you remortgage and take the difference as cash, subject to the new lender's affordability and loan-to-value checks.
Borrowing £30,000 more on £250,000 over 20 years at the 5.98% average two-year fix raises the payment by about £215 a month and costs about £21,500 in interest if that rate held for the whole term.
What are early repayment charges (ERCs)?
An early repayment charge is a fee your current lender charges if you repay or switch during the fixed or tracker period. ERCs are commonly 1% to 5% of the balance, falling each year of the deal, and usually do not apply once you are on the SVR.
Enter yours in the calculator: it is added to your switching costs in the break-even.
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Further Reading
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