UK Remortgage Calculator 2025

The best time to remortgage is typically 3-6 months before your current deal ends, when you're moving to your lender's standard variable rate, or when market rates have dropped significantly. This gives you time to find the best deals and complete the process without rushing. Also consider remortgaging if your property has increased in value or your credit score has improved.

Remortgaging costs typically include arrangement fees (£0-£2,000), valuation fees (£150-£1,500), legal fees (£300-£1,500), and potentially early repayment charges if you're leaving your current deal early. Some lenders offer free valuations and legal work. Always factor these costs into your savings calculations to ensure remortgaging is worthwhile.

The remortgage process typically takes 4-8 weeks from application to completion. This includes time for application processing, property valuation, legal work, and final approval. Starting early is crucial - begin looking for deals 3-6 months before your current rate expires to avoid being moved to your lender's higher standard variable rate.

In 2025, typical remortgage savings range from £200-£400 per month, depending on your balance and rate reduction. For example, on a £300,000 mortgage, switching from a 7.5% SVR to a 4.5% fixed rate saves £389/month (£4,668/year). Over a 20-year term, this totals £93,360 in savings. Even after deducting £1,500-£2,000 in remortgage fees, you'll break even in 4-6 months and save significantly long-term. Use our calculator above to see your specific savings based on your mortgage details.

Product transfers (staying with your current lender) are faster (2-4 weeks) and cheaper (£500-£1,000 total costs) as they skip valuation and legal work. However, switching to a new lender gives you access to 90+ lenders and 5,000+ products, often with rates 0.2-0.5% better (saving £40-£100/month on £300k). Choose product transfer if your lender offers competitive rates and you need a quick switch. Choose a new lender if you can save 0.3%+ on rate, have 3+ months before your deal ends, and your credit score is good (700+). Many new lenders also offer cashback (£500-£2,000) that offsets switching costs.

The break-even point is when your monthly savings equal your total remortgage costs. For example, if remortgaging costs £1,800 and you save £300/month, you'll break even in 6 months (£1,800 ÷ £300 = 6). After this, all savings are pure profit. Typical break-even periods in 2025 are 4-12 months for product transfers (lower costs) and 6-18 months for new lenders (higher costs but better rates). If you're planning to stay in your property for at least 2-3 years beyond the break-even point, remortgaging is usually worthwhile. Our calculator above shows your exact break-even time.

Yes, you can remortgage with bad credit, but your options will be more limited and rates higher. Lenders typically require a credit score of 620+ for standard deals, but specialist lenders accept scores as low as 500-550. Adverse credit factors include missed payments (last 6-12 months most critical), CCJs (County Court Judgments), defaults, IVAs (Individual Voluntary Arrangements), and bankruptcies. To improve your chances: wait 6-12 months after adverse events, pay all bills on time, reduce credit utilization to below 30%, and consider a larger deposit to reduce LTV. Specialist brokers can access lenders who accept adverse credit. Expect rates 1-3% higher than standard deals (e.g., 6.5-8.5% vs 4.5-5.5%).

Remortgage fees in 2025 typically include: arrangement/product fee (£0-£2,000, average £999), valuation fee (£150-£1,500, often free), legal fees (£300-£1,500, many lenders cover this), early repayment charge if leaving early (1-5% of balance), and optional broker fee (£0-£500). Total costs range from £500-£1,000 for product transfers to £1,500-£3,000 for new lenders. Most lenders allow you to add the arrangement fee to your loan, which reduces upfront costs but increases your monthly payment and total interest paid. For example, adding a £999 fee to a £300,000 loan at 4.5% over 20 years costs an extra £6.30/month and £1,512 in total interest. Only add fees to the loan if you need to preserve cash flow.

Start looking for remortgage deals 6 months before your current fixed rate ends, and submit your application 3 months before the end date. This timeline gives you time to: research and compare deals (2-3 months), get mortgage offers (4-6 weeks), complete valuation and legal work (4-8 weeks), and have a buffer for any delays. Most lenders allow you to lock in rates up to 6 months in advance, protecting you from rate rises. If you wait until your deal ends, you'll be moved to your lender's SVR (typically 7-8%), costing £200-£400/month extra while you search. Even 1-2 months on SVR can cost £400-£800 in unnecessary payments. Set a calendar reminder 6 months before your deal ends to start the process.

Whether a small rate reduction is worthwhile depends on your mortgage balance, remaining term, and remortgage costs. As a rule of thumb: 0.5%+ rate reduction is almost always worth it, 0.25-0.5% reduction is worth it if costs are low (product transfer or free legals), and below 0.25% reduction may not be worth it unless you have a large balance (£400k+) or very low costs. For example, on a £300,000 mortgage, a 0.25% rate reduction saves £42/month (£504/year). If remortgage costs are £1,500, you'll break even in 36 months. If you're staying in the property for 3+ years, it's worthwhile. On a £500,000 mortgage, the same 0.25% reduction saves £70/month, breaking even in 21 months. Always calculate total savings over your intended stay period minus all costs.