Money Saving Expert Remortgage Calculator

Remortgaging can be a powerful way to save money on your mortgage payments. Our expert remortgage calculator helps you compare different mortgage options, estimate potential savings, and make informed decisions about your home financing.

How the Remortgage Calculator Works

The remortgage calculator compares your current mortgage with potential new mortgage terms to estimate potential savings. It calculates the difference in monthly payments, total interest paid over the life of the mortgage, and the total amount saved.

Key Formulas

Monthly Payment Calculation:

P = L × [r(1 + r)^n] / [(1 + r)^n - 1]

Where: P = monthly payment, L = loan amount, r = monthly interest rate, n = number of payments

Total Interest Paid:

Total Interest = (Monthly Payment × n) - Loan Amount

Potential Savings:

Savings = (Current Monthly Payment - New Monthly Payment) × n

The calculator uses these formulas to provide a comprehensive comparison of your current mortgage versus potential new mortgage terms. It helps you understand the financial impact of remortgaging and make decisions that align with your financial goals.

How to Use This Calculator

Enter your current mortgage details including the loan amount, current interest rate, and remaining term.
Input the potential new mortgage terms including the new interest rate, new term, and any fees associated with remortgaging.
Click "Calculate" to see the comparison between your current and new mortgage options.
Review the results to understand potential savings, changes in monthly payments, and the total interest paid over the life of the mortgage.
Use the information to make an informed decision about whether remortgaging is right for you.

Remember that this calculator provides estimates based on the information you provide. Actual savings may vary depending on your specific circumstances and market conditions.

Example Calculation

Let's look at an example to see how the remortgage calculator works. Suppose you have a current mortgage with the following details:

Loan Amount: £200,000
Current Interest Rate: 4.5%
Remaining Term: 20 years

You're considering remortgaging to a new mortgage with these terms:

New Interest Rate: 3.5%
New Term: 25 years
Remortgage Fees: £1,500

Using the calculator, you would find:

Current Monthly Payment: £1,096.29
New Monthly Payment: £896.29
Monthly Savings: £200.00
Total Interest Paid (Current): £131,517.60
Total Interest Paid (New): £116,517.60
Total Savings: £15,000.00

This example shows that remortgaging could save you £200 per month and £15,000 over the life of the mortgage. However, the actual savings may vary depending on your specific circumstances.

Frequently Asked Questions

What is remortgaging?

Remortgaging is the process of switching from your current mortgage to a new one, typically to secure a better interest rate or different repayment terms. It involves refinancing your existing mortgage.

How much can I save by remortgaging?

The amount you can save by remortgaging depends on factors such as your current interest rate, the new interest rate, the term of the mortgage, and any fees associated with remortgaging. Our calculator provides estimates based on the information you provide.

What fees are associated with remortgaging?

Common fees associated with remortgaging include valuation fees, legal fees, and arrangement fees. These fees can vary depending on the lender and your specific circumstances. Our calculator includes a field for remortgage fees to help you estimate their impact on your savings.

Is remortgaging right for me?

Remortgaging may be right for you if you can secure a better interest rate, reduce your monthly payments, or change the term of your mortgage to better suit your financial situation. However, it's important to consider the costs and benefits carefully before making a decision.

How often should I review my mortgage?

It's a good idea to review your mortgage at least once a year, or whenever there are significant changes in your financial situation or the mortgage market. This can help you identify opportunities to save money or make changes to better suit your needs.