Current Deal vs SVR vs New Mortgage Rate Comparison
🔴 Current Deal
🟢 New Deal
Remortgage Product Fees & Break-Even Payback Period
🏠 Equity & LTV
📈 Remortgage Results
📅 First 12 Months — New Deal Breakdown
| Month | Payment | Interest | Capital | Balance |
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Results are estimates for illustration purposes. Actual remortgage rates depend on your credit profile, LTV and lender. Fees vary by lender — some offer free valuations and legal work. Always compare the total cost of switching, not just the headline rate.
How Does the UK Remortgage Calculator Work?
Remortgaging means switching your existing mortgage to a new deal — either with a different lender or by doing a product transfer with your current one. The main goal is to reduce your interest rate and save money on monthly payments. Here are the key times to consider remortgaging:
- Your fixed deal is ending: Most homeowners are on a 2 or 5-year fixed rate. When this ends, you move onto the lender’s Standard Variable Rate (SVR), which is almost always more expensive. Start looking 3–6 months before your deal expires.
- Rates have dropped: If market rates have fallen significantly since you took out your current deal, remortgaging could lock in a lower rate even if you have to pay an early repayment charge.
- Your property value has risen: If your home is now worth more, your LTV ratio will be lower, potentially qualifying you for cheaper rate brackets.
- You want to borrow more: Remortgaging lets you release equity from your home for renovations, debt consolidation or other purposes.
- Your circumstances have changed: A salary increase, improved credit score, or switching from interest-only to repayment may unlock better deals.
⚠️ The SVR Trap
The Standard Variable Rate is the default rate your lender charges after your fixed or tracker deal ends. SVRs are set entirely at the lender’s discretion and are typically 1–3% higher than the best available fixed rates. For example, if your fixed rate was 4% and you roll onto an SVR of 6.5%, on a £200,000 balance over 20 years your monthly payment would jump from around £1,212 to £1,491 — an increase of nearly £280 per month or £3,350 per year.
According to UK Finance, around 800,000 homeowners are currently on their lender’s SVR. Many could save thousands per year simply by switching to a new fixed deal. There is no loyalty benefit for staying on an SVR — it is almost always better to remortgage or do a product transfer.
💸 Early Repayment Charges (ERCs)
If you are still within your fixed or tracker deal period, your lender may charge an early repayment charge for leaving early. ERCs are typically structured as a percentage of the outstanding balance:
- 2-year fix: Usually 2–3% in year 1, 1–2% in year 2
- 5-year fix: Often 5% in year 1, decreasing by 1% each year to 1% in year 5
- Tracker deals: Some have no ERCs, others mirror fixed-rate structures
On a £200,000 balance, a 3% ERC would cost £6,000. You need to factor this into your break-even calculation. Our calculator above includes ERCs in the fee payback period so you can see whether switching still makes financial sense.
🔁 Product Transfer vs Remortgage
When your deal ends, you have two options: a product transfer with your existing lender, or a full remortgage to a new lender.
Product transfer is simpler and faster. You stay with your current lender and move to a new rate. There is usually no valuation, no legal work, and no arrangement fee. The process can take as little as a few days. However, your existing lender may not offer the most competitive rates.
Remortgaging to a new lender gives you access to the whole market. You may find significantly better rates, especially if your LTV has improved. However, it involves a full application, credit check, valuation and legal conveyancing, plus fees. The process typically takes 4–8 weeks.
The right choice depends on the rate difference. If your current lender’s product transfer rate is within 0.1–0.2% of the best market rate, the simplicity and zero fees may make it the better option. If the market rate is significantly cheaper, a full remortgage is usually worth the extra effort and cost.
🛠️ How to Switch: Step by Step
- Check your current deal: Find out when your fixed rate ends, what SVR you’d move to, and whether you have any early repayment charges.
- Use this calculator: Enter your current deal and compare it with new rates to see your potential savings and fee payback period.
- Check your LTV: Get an idea of your property’s current value (Zoopla, Rightmove or a local agent). A lower LTV unlocks better rates.
- Compare product transfers and remortgages: Ask your current lender about product transfer rates, then compare with the open market.
- Apply early: You can usually apply 3–6 months before your deal expires. Most rate offers are held for 3–6 months, so there is no cost to locking in early.
- Complete the switch: If remortgaging, your new lender will arrange a valuation and instruct solicitors. If doing a product transfer, it is mostly paperwork.
📝 Worked Examples
⚠️ SVR to Fixed Rate
📈 Rate Drop — End of Fix
🏠 Equity Release Remortgage
❓ Frequently Asked Questions About Remortgaging in the UK
The best time to remortgage is 3–6 months before your current fixed or tracker deal ends. Most lenders let you apply early and lock in a rate. If you let your deal expire, you’ll move onto your lender’s Standard Variable Rate (SVR), which is almost always significantly higher. You should also consider remortgaging if rates have dropped substantially or your property value has increased.
An SVR is the default rate your lender charges after your deal ends. SVRs are set by the lender and are typically 1–3% higher than the best fixed rates. Staying on an SVR can cost hundreds of pounds extra per month. For example, on a £200,000 balance, the difference between a 4% fix and a 6.5% SVR is around £280/month or £3,350/year. There is no benefit to staying on an SVR — always remortgage or do a product transfer.
Early repayment charges are fees your current lender charges if you pay off your mortgage before the deal period ends. ERCs are typically 1–5% of the outstanding balance and decrease each year. For example, a 5-year fix might charge 5% in year 1, 4% in year 2, and so on. On a £200,000 balance, a 3% ERC costs £6,000. Factor ERCs into your remortgage calculation to check if switching still saves money.
A remortgage means switching to a different lender, which involves a full application, valuation and legal work but gives access to the whole market. A product transfer means moving to a new deal with your existing lender — it is quicker, cheaper (often no fees) and simpler, but the rates may not be as competitive. Compare both options before deciding.
Common fees include: arrangement fee (£0–£2,000), valuation fee (£0–£500, often free), legal/conveyancing fees (£300–£1,000, sometimes paid by the new lender), and any early repayment charge on your current deal. Many lenders offer fee-free packages or cashback to offset costs. Use our calculator above to see how long it takes to recoup fees from your monthly savings.
Yes, LTV is one of the biggest factors in your remortgage rate. Lenders offer their best rates at lower LTV brackets: 60% LTV gets the best rates, followed by 75%, 80%, 85% and 90%. If your property has increased in value since you bought it, your LTV may have dropped, potentially qualifying you for a cheaper bracket. Enter your current property value in our calculator to see your LTV and bracket.