Last reviewed on 12th October 2021
Once your initial mortgage rate comes to an end, you’ll be on a higher rate so a remortgage could reduce your monthly cost. Our remortgage calculator will work out whether you could save money on your mortgage by switching to a new deal.
The rates used are an example, so do speak to our advisors for a more accurate idea of the deals you qualify for.
How does this remortgage calculator work?
Our remortgage calculator uses different mortgage rates based on the loan to value of your remortgage. Higher loan to values will have higher rates whereas a low LTV will have a lower rate. For instance, a 60% remortgage is likely to have better rates when compared to a 95% remortgage.
The rates our calculator uses are updated regularly to reflect live remortgage deals. That being said, the results of the calculator are an approximate guide which only works with the figures entered and won’t take into account your personal situation.
Can a remortgage save me money?
The most popular reason for a remortgage is to save money. Once your initial deal expires, you’ll be placed on a standard variable rate (SVR) which is usually a lot higher than an introductory mortgage rate. As a result, a remortgage can save you money.
Saving money on a remortgage isn’t just about switching deals or finding the lowest rate. You’ll want to be sure that you’ve selected the mortgage that will save you the most money. This is done by calculating the cost of your remortgage, such as the fees and rates involved.
Our remortgage calculator will show you how much you can save each year on your mortgage where possible.
How much more can I borrow with a remortgage?
If you have enough equity in your home, you could remortgage to borrow more against your home. This is known as releasing equity. As you’ll be borrowing more, it’s likely that your mortgage payments will rise as a result.
Nonetheless, releasing equity can be wise depending on your reasons for doing so. For instance, using equity in your home to buy a second property can be a great use of the additional funds you have.
Lenders won’t allow you to borrow 100% against your home with a remortgage, so you will need to leave some equity in your home. You may be able to leave as little as 5% equity by using a 95% remortgage, but not all lenders will allow you to do this.
Useful remortgage guides
Still unsure of what to do next?
So, you’ve tried our remortgage calculator and learned more about the process, but what should you do next? If you’re ready to begin looking at remortgage deals, make an enquiry and our experts will give you a call.
We’ll then assess whether a remortgage will save you money by comparing each deal you’re eligible for.