Remortgage Calculator

Our remortgage calculator (UK) will work out how much you could save by changing to a new mortgage deal. It will compare how much you have remaining to pay on your current mortgage deal with the payments you could be making on your remortgage. All you need to do is put in some details of your current mortgage loan as well as the new interest rate you would get on a remortgage, and our remortgaging calculator will do the rest.

Anyone who has an existing mortgage on a property can consider remortgaging options. Most people will look at remortgaging their property when their introductory interest rate comes to an end. You can start to arrange your remortgage up to 6 months before the introductory rate ends. By doing this, you can avoid going onto your lender’s SVR (standard variable rate) which will be much more expensive. 

If you remortgage before your introductory period is due to end, you might face ERCs (early repayment charges), particularly if you opted for a fixed rate deal.

Yes, there are various reasons that your remortgage application might be refused. One of the most common reasons is if you have a bad credit rating. If you’ve had adverse credit events that have negatively impacted your credit profile since you took out your current mortgage, then you’ll have less lenders available to you when it comes time to remortgage.

However, even in these cases, our brokers can help find specialist lenders that focus on adverse credit cases so that you can still remortgage. You might also be rejected if your affordability and income are no longer high enough to take out the mortgage loan.

The amount you can borrow on your remortgage will depend on your income, affordability, the equity you’ve built up in your property and the level of risk you represent to a lender. Most lenders will let you borrow up to 4.5x your annual income.

You can remortgage for the same amount you have outstanding on your current mortgage. Doing this allows you to switch to a better rate as you’ll be taking out a lower LTV (loan-to-value) product because you will have built up equity in your property by regularly meeting your mortgage payments.

You can also remortgage for more than the amount outstanding on your current mortgage. Doing this allows you to release equity from your property that you can use on large expenses like home improvements, helping your children with deposits, weddings and more. The amount of equity you can release will depend on your circumstances and the lender’s assessment, but most lenders offer remortgages at LTVs of up to 95%.

How much you can borrow when you remortgage is also based on borrowing against the value of your house, which is called the LTV (loan-to-value). 

Lenders need to assess what level of risk your property and you represent, viewing a person with a lower LTV percentage as less risky. If your property is valued at £200,000 and you’re looking to borrow £150,000, then your LTV would be 75%.

You don’t need a deposit with a remortgage like you did with your first mortgage; instead, you need to show how much equity you have.

Your equity is not how much you have paid off your mortgage – it’s the current market valuation minus how much you owe. 

So, the amount you can borrow when you remortgage depends on your income, your equity, and the level of risk you represent to a lender. 

So far, so good – but it’s also important that you can afford to repay the remortgage each month, which is where affordability comes in.

Most borrowers will allow you to borrow up to 95% on your remortgage if you meet their affordability requirements. Remortgaging for more than the amount remaining on your mortgage will let you release equity from your property, which you can then use for home renovations, starting a business, funding higher education, or something else.

Remortgaging can help you get a better deal and switch to a new fixed interest rate. However, you should be aware of any exit fees that your current mortgage lender might have, especially if you’re looking to remortgage before the end of your introductory period. You can use our mortgage calculator for remortgage options to see how much you could save.

Pros of a remortgage with the same lender

You’re likely to have fewer or no fees with your existing lender to transfer you to a new product.

You’ll also have a track record with your existing lender, so they don’t usually ask for as much paperwork and proof of identity – as you would have done this initially.

Cons of remortgaging with the same lender

As an existing customer, you won’t be offered new customer remortgage deals, so your rate might be higher.

Pros of remortgaging with a new lender

The benefit of moving to a new lender for your remortgage is the low initial cost of borrowing (interest rate), which is often reserved for new customers only. You might also be able to access new features, flexibility and incentives.

Cons of remortgaging with a new lender

However, new customer remortgages often come with fees and costs associated with them, and you’ll have to provide paperwork to prove who you are, your income, and various other documents.

The exact amount you can save by remortgaging will depend on how your current mortgage deal compares to your new one. You can use our mortgage calculator (UK) for remortgage savings to see how much you could cut your monthly payments by. If you want help making the most of your remortgage, speak to an experienced broker.

Remortgaging can take 4 – 8 weeks on average. It’s generally quicker than getting your original mortgage as there’s no property chain to worry about. You can start to arrange your remortgage up to 6 months before your introductory offer ends. This is worth doing as it’s a way to ensure you avoid going onto your lender’s SVR and instead switch to your new rate immediately.

Most lenders will let you borrow up to around 4.5x your income when you take out a mortgage. If you’re applying with a partner, lenders will calculate remortgage affordability based on your joint income. They will also take debts or other outgoings into consideration. Of course, this income multiple is used to calculate your maximum borrowing amount. The amount the lender will actually lend to you will depend on other factors such as your LTV and affordability.

Unless your income has drastically reduced since taking out a remortgage, you’ve recently had some adverse credit events, or your property had severely declined in value, getting a remortgage for the amount you need should be fairly straightforward. If you’re struggling to find a lender that will offer you a remortgage, our expert brokers can help you find lenders that have more flexible affordability criteria.

If you’re remortgaging to try to save money on your mortgage, then you can use a broker to help you get a better deal than you’ll be able to find yourself. Here at John Charcol, we have expert brokers who will find the right lender for your situation, including lenders that specialise in complex income structure or borrowers with poor credit.

Try our refinance calculator above to see how much you could save, and get in touch today on 0808 273 2191to see how we can help.