Remortgage Calculator
For Information Only
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Remortgaging means switching your existing mortgage to a new deal, either with your current lender or a new one. This calculator helps you see what your new monthly payments could be. It's often done to get a better interest rate or to borrow more money.
💡 Pro Tip: How to use this for Remortgaging
To get an accurate estimate for a remortgage switch:
- Enter your current outstanding mortgage balance into the Property Value field.
- Set the Deposit to 0 (unless you are paying extra into the mortgage as part of the switch).
- The resulting "Loan Amount" will correctly reflect what you need to borrow for your new deal.
Why Remortgage?
- Lower Interest Rate: If your initial fixed-rate period is ending, you'll likely move to a higher Standard Variable Rate (SVR). Remortgaging can secure a new, lower fixed rate.
- Borrow More: You might want to release equity from your home for home improvements, to consolidate debt, or for other large expenses.
- Change Your Term: You could shorten your loan term to pay it off faster, or lengthen it to reduce your monthly payments.
Things to Consider
Be aware of any early repayment charges (ERCs) on your current mortgage and any fees for the new one. These costs can sometimes outweigh the benefits of a lower interest rate.
Logic & Formulas
This calculator uses the exact same logic as the standard Mortgage Calculator. The monthly payment is calculated using the loan amortization formula.
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where P is your principal loan amount (the current balance you owe), i is the monthly interest rate, and n is the number of months in your new term.