When should I start looking at remortgaging?

Start looking 3–6 months before your current fixed rate ends. Mortgage offers are valid for 3–6 months, so you can lock in a new rate in advance and switch automatically when your deal ends — avoiding any gap on the higher Standard Variable Rate (SVR).

What are the costs of remortgaging?

Typical switching costs include an arrangement fee (£0–£2,000), valuation fee (often free), legal/conveyancing fees (£300–£700 for a remortgage), and broker fee (£0–£500 for fee-free brokers). If you switch before your fixed term ends, an Early Repayment Charge (ERC) of 1–5% of your balance may also apply.

What is an Early Repayment Charge?

An ERC is a penalty charged by your lender if you pay off your mortgage (or switch to a new deal) before your current fixed-rate period ends. It is typically 1–5% of your outstanding balance. Always check your mortgage documents or call your lender before switching mid-fix.

Property

Remortgage Savings Calculator – Is It Worth Switching in 2026?

Calculate exactly how much you could save by remortgaging — including early repayment charges, all switching fees, break-even point, overpayment savings, and a full comparison of your current deal vs the new one.

Updated April 2026

✅ Rates verified April 2026 · Sourced from HMRC, DWP & UK legislation · About our verification process

When Should You Remortgage?

Start looking three to six months before your current fixed rate ends. When your deal expires you move to your lender's Standard Variable Rate (SVR) — typically 2–3% higher than the best available fixed rates, costing the average homeowner hundreds of pounds extra each month. Locking in a new rate in advance costs nothing and avoids any gap on the SVR.

If you are mid-fix, you need to weigh the saving against Early Repayment Charges. ERCs are typically 1–5% of your outstanding balance and can amount to thousands of pounds. This calculator factors them in and shows your true break-even point after all costs.

Product transfer vs full remortgage: A product transfer (staying with your existing lender on a new rate) is faster and cheaper — no legal fees, no valuation, no new application. A full remortgage moves you to a new lender, involves legal fees (typically £300–£500) but may access better rates. Always compare both options.

Early Repayment Charges Explained

ERCs are calculated as a percentage of your outstanding mortgage balance. Typical structures are: 5% in year 1, 4% in year 2, 3% in year 3, 2% in year 4, 1% in year 5. Some lenders use a flat percentage throughout the fixed period. The ERC always applies to the balance at the time you switch, not the original loan amount. Input your ERC percentage directly and the calculator works out the exact pound figure.

Overpayment Strategy

Most fixed-rate mortgages allow you to overpay by up to 10% of your outstanding balance each year without triggering ERCs. Regular overpayments reduce your balance faster, cutting the total interest you pay and shortening your mortgage term. If you are planning to remortgage, making overpayments before switching can reduce your LTV band and unlock a better rate on the new deal.

Tip: If you are within 6 months of your ERC period ending, it is almost always worth waiting rather than paying the charge — unless rates are rising rapidly. Use this calculator to compare the cost of waiting vs switching now.