How Remortgaging Could Save You £100s

For many UK homeowners, remortgaging can be one of the simplest ways to reduce monthly mortgage payments and potentially save hundreds (or even thousands!) of pounds over time. Yet many borrowers remain on deals that no longer offer the best value, often because they haven’t reviewed their options recently.

What Is a Remortgage?

A remortgage is when you switch your existing mortgage to a new deal, either with your current lender or a different provider. Homeowners typically consider remortgaging when their current fixed-rate, tracker, or discount deal is within 6 months of coming to an end.

Once an introductory mortgage deal expires, many borrowers are moved onto their lender’s Standard Variable Rate (SVR). This can be significantly higher than the rates available elsewhere.

Remortgaging allows you to secure a new deal that may better suit your circumstances and financial goals.

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Why Do People Remortgage?

There are several reasons homeowners choose to remortgage:

• To secure a lower interest rate
• To reduce monthly repayments
• To switch to a fixed-rate mortgage for greater certainty
• To borrow additional funds for home improvements
• To release equity from their property
• To consolidate existing debts

For many people, the primary motivation is often to save money.

How Much Could You Save?

Even a relatively small difference in interest rates can have a noticeable impact on monthly repayments.

For example:

Scenario 1

• Mortgage balance: £200,000
• Remaining term: 25 years
• Current rate: 5.5%
• New rate: 4.5%

1% might not sound like much of a difference when you look at the interest rates, but this reduction could decrease monthly repayments by approximately £120 per month, equivalent to around £1,440 per year.

Scenario 2

• Mortgage balance: £300,000
• Remaining term: 20 years
• Current rate: 6.0%
• New rate: 4.8%

In this scenario, the 1.2% difference could lead to potential savings of more than £200 per month, resulting in annual savings of more than £2,400.

While every mortgage is different, these examples highlight why reviewing your mortgage regularly can often be worthwhile.

Don’t Forget About Fees

When assessing a remortgage, it’s important to also look beyond the headline interest rate. Some mortgage products may include:

• Arrangement fees
• Valuation fees
• Legal fees
• Early repayment charges on your current mortgage

Whilst a lower interest rate is preferable, it may not always be the cheapest option overall. The key is comparing the total cost of the mortgage against any fees involved.

For example, a mortgage with a slightly higher interest rate but lower fees may work out better value than a product with a headline rate that appears more attractive at first glance.

This is why calculating the full cost and potential savings is essential before making a decision.

How a Mortgage Calculator Can Help

A mortgage calculator is one of the quickest and easiest ways to understand whether remortgaging could benefit you.

By entering a few details, you can estimate:

• Potential monthly repayments
• How much you could save each month
• The long-term impact of different rates
• Whether switching deals could make financial sense

Rather than relying on assumptions, a calculator provides a clearer picture of your options and helps you make informed decisions based on your circumstances.

Once you’ve used our free calculators, our advisers can then explore the most suitable mortgage options and walk you through the next steps.

Find Out How Much You Could Save

If your mortgage deal is due to end soon, now could be the perfect time to explore your options.

Use our mortgage calculators to compare scenarios, estimate repayments and discover how much you could potentially save by remortgaging. It only takes a few minutes and could help you uncover significant savings on your mortgage.