Remortgage Savings Calculator
When a fixed-rate deal ends, most landlords automatically roll onto their lender's Standard Variable Rate — often 1–2% higher than a competitive fixed deal. The savings from an active remortgage strategy can be significant, but need to be weighed against arrangement fees, valuation fees, and legal costs. This calculator tells you the monthly saving, the payback period on the remortgage costs, and the total saving over a fixed period.
Why this matters
Landlords who fail to remortgage at the right time can overpay thousands per year. On a £200,000 loan, a 1% rate difference costs £167/month — £2,000 per year in extra interest.
Key points
- Standard Variable Rates (SVR) are typically 1–3% above competitive fixed-rate deals
- Arrangement fees range from £0 to £2,000+ — always factor these into the true cost
- Remortgage legal costs are often covered by the new lender as a cashback incentive
- Early Repayment Charges (ERCs) can make remortgaging expensive — time it to the end of your fixed period
- Stress testing: buy-to-let lenders typically test affordability at 125–145% of the stressed interest rate
- Green mortgages offer preferential rates for EPC A/B properties — improving EPC first can save money
Frequently asked questions
When is the best time to remortgage a buy-to-let?
Start the remortgage process 3–6 months before your current deal ends. This allows time to search, apply, and complete without rolling onto the SVR. Some lenders offer product transfers without full underwriting, which is faster.
Do I have to use the same lender when I remortgage?
No — you are free to switch lenders. Different lenders offer different criteria, rates, and incentives. A whole-of-market broker is the most efficient way to find the best deal.
How do arrangement fees affect the true cost of a mortgage?
A lower-rate mortgage with a high arrangement fee is not always cheaper than a higher-rate mortgage with no fee. Always calculate the total cost (all payments + fees) over the fixed period to compare properly.
What is a product transfer and is it better than a full remortgage?
A product transfer means switching to a new rate with your existing lender without a full affordability reassessment. It is faster and cheaper but may not offer the best rate. Compare both options before deciding.