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Remortgage Calculator

Remortgage Calculator

Remortgage Calculator

How Does the Remortgage Calculator Work?

This calculator compares your current mortgage against a new mortgage offer by considering:
  • 1. Loan Amount: The total amount of the mortgage.
  • 2. Interest Rate: Your annual interest rate for both the current and new mortgage.
  • 3. Loan Term: The remaining years and months on your mortgage.
  • 4. Monthly Payments:The monthly repayment amount for each mortgage.
The calculator then calculates the difference between the two monthly payments and provides an easy-to-understand result:
  • Negative Difference: You’ll pay less with the new mortgage.
  • Positive Difference: You’ll pay more with the new mortgage.
  • Zero Difference: Your payments will remain the same.

Why use a Remortgage Calculator?

  • 1. Understand Savings Opportunities
    See exactly how much you could save each month by switching to a better mortgage deal with a lower interest rate.
  • 2. Plan for Financial Changes
    If a new mortgage deal results in higher payments, the calculator helps you plan for those adjustments.
  • 3. Make Informed Decisions
    Get a clear, side-by-side comparison of your options, helping you decide if remortgaging is the right move.

Example Scenarios

  • 1: Lower Interest Rate on New Mortgage
  • Current Mortgage: £200,000 at 4% for 20 years
  • New Mortgage: £200,000 at 3% for 20 years
  • Current Monthly Payment: £1,211
  • New Monthly Payment: £1,109
  • Monthly Difference: -£102 (You’ll pay less)
  • 2: Higher Loan Amount for Home Improvements
  • Current Mortgage: £150,000 at 2.5% for 15 years
  • New Mortgage: £180,000 at 3% for 15 years
  • Current Monthly Payment: £1,000
  • New Monthly Payment: £1,242
  • Monthly Difference: +£242 (You’ll pay more)

Benefits of Remortgaging

  • Save Money on Monthly Payments: Switching to a lower interest rate can significantly reduce your monthly payments
  • Release Equity: Use a remortgage to release funds for home improvements or other expenses.
  • Consolidate Debts: Combine multiple debts into one manageable monthly payment through remortgaging.
  • Lock in a Better Rate: Take advantage of market conditions to secure a fixed or lower rate