Remortgage Savings Calculator
Find out how much you could save by switching to a new mortgage deal.
Your current mortgage
New deal
Enter 0 if fee-free
Monthly payment comparison
Current rate (5.5%)
£1,314.57
New rate (4.2%)
£1,189.04
Monthly saving
+£125.53
Annual saving
+£1,506
Fee payback period
8 months
Your £999 fee is recovered in 8 months of savings
Net saving (after £999 fee)
Over 2 years
Save £2,014
Over 5 years
Save £6,533
Over full 18-year term
Save £26,115
Is it worth paying a fee to remortgage?
When comparing remortgage deals, the headline rate is only part of the story. A lower rate often comes with a product fee — typically £999 to £1,999 — while a higher rate may be fee-free. The right choice depends entirely on how long you plan to stay on the deal and the size of your mortgage.
When a fee deal wins
On larger mortgages, even a small rate reduction can generate significant monthly savings, meaning the fee is recovered quickly — often within 6–12 months. If you are fixing for 5 years, a fee deal almost always beats a fee-free one once you account for the full term.
When fee-free wins
On smaller mortgages — particularly below £100,000 — the monthly saving from a lower rate may be so modest that the fee takes years to recover. If you are only fixing for 2 years or plan to sell or move soon, a fee-free deal at a marginally higher rate is often the better financial decision. Always calculate the break-even point before committing.
Ready to find a better rate?
Get a free, no-obligation quote from a qualified broker.
Disclaimer: This calculator is for illustrative purposes only and does not constitute financial advice. Always speak to a qualified, FCA-authorised mortgage adviser before making financial decisions.