If you are a homeowner, remortgaging onto a better mortgage deal when your current one expires could save you hundreds of pounds in interest every month.
That’s because you’ll avoid reverting onto the lender’s standard variable rate. SVRs are invariably much higher than the cost of new remortgage deals, such as fixes or trackers, that lenders have on offer.
Our remortgage calculator will give you an indication of how much you could save by switching to a mortgage with a cheaper rate of interest. Find out more on how to use it, below.
How to use the calculator
Our remortgage calculator is simple to use. Just key in:
- the interest rate you pay on your existing mortgage
- the amount you pay every month
- the outstanding balance of your current deal, and
- how long is left until the mortgage will be cleared.
Then enter the interest rate of the new mortgage and how many years you want this new deal to last.
If the new rate is lower, you may want to reduce the mortgage term, say from 20 years to 15. If you did this, your monthly payments might not go down, but you’d clear your debt faster and pay less interest overall .
Next, add in any associated costs with the remortgage, such as arrangement or valuation fees. There’s a space for broker fee too, but many brokers, including our mortgage partner, Trussle, don’t charge customers, taking their fee from the lender instead.
If you need to pay early repayment charges to get out of your current deal, enter these too. Depending on how long you have remaining, these fees may not be worth paying, versus what the new deal will save you.
Finally, hit the ‘Calculate’ button to find out what you can save each month in mortgage payments, and how much interest you can save overall.
The calculator will also tell you how many months it will take to recoup any fees you’ve paid out to access the new deal.
Just bear in mind that the numbers are only representative. The exact figures will be determined by the individual lender and your personal circumstances, such as income and credit score.
Comparing the market for the best deal
After you see how much you might save, hit the green ‘View offers’ button to see what mortgage deals are on the market right now.
Casting your net as wide as possible in your search for a new mortgage is key to getting the very best deal. Trussle searches more than 1,200 mortgages from around 90 lenders.
While going to a new lender requires new ID and affordability checks, a good mortgage broker will guide you through this process. At Trussle, you can track the progress of your application from your online profile. It’s also where you upload all the relevant documents in digital format and exchange messages.
With the cost of living rising, time and effort spent getting the right mortgage for you will soon pay dividends, whether it’s more flexibility, cash back in your pocket – or both.
Free Mortgage Advice
Trussle is a 5-star Trustpilot rated online mortgage advisor that can help you find the right mortgage – and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage.