If you’re looking to remortgage, perhaps because your existing mortgage deal is coming to an end, or because you’re looking to borrow a bit more, L&C’s remortgage calculator is here to help.
Our remortgage calculator can tell you how much you’re likely to be able to save by switching to a new deal and avoiding paying your lender's standard variable rate, as well as how much your monthly payments might be on a new deal. You can get started on your remortgage even if your current deal hasn’t finished, as many remortgage offers last for between three and six months from the date they’re issued. This means you may be able to arrange for your new mortgage to begin as soon as your current deal ends.
Remember, these results are only intended to provide you with a guide to what’s possible, so it’s worth getting in touch with one of our expert advisers who can talk you through the best available remortgage options based on your individual circumstances.
If you're one of the many borrowers currently on or about to slip onto a lender's standard variable rate (SVR), it could cost you thousands. Fill in some basic details below and we'll show you what the cost could be.
A remortgage is the act of moving the mortgage on your home from one lender to another, or changing your deal with your current lender. There are numerous reasons people go through this process - let’s take a look at some of the most common.
When you take out a mortgage, your ‘mortgage term’ is the total length of time you borrow the money for, and your mortgage ‘deal’ or ‘initial rate’ is usually an introductory discount of some kind on the interest you have to pay. Whether your initial rate is for two, five or ten years, when you reach the end of it, it’s likely that you’ll be moved on to your lender’s Standard Variable Rate - which is usually higher than the introductory deal you were on. Many people choose to remortgage to avoid this – there’s nothing stopping you from getting a new deal and continuing to save money by making sure you're on a competitive rate.
You don’t have to wait until your current deal ends to remortgage - you can start shopping around for a new mortgage deal around three to six months before, but if you do switch deals earlier than that, it’s likely you’ll be subject to an Early Repayment Charge.
Like your home and car insurance, you shouldn’t just go with the deal your existing lender offers you, as there may be better rates available from other providers. Even a small difference in rate can mean you make a worthwhile saving, so it’s worth shopping around to see what deal you can get.
If you're currently on your lender’s Standard Variable Rate, it’s extremely likely that you’ll be able to find lower rates elsewhere. You can also use a new deal to give you peace of mind - if you choose to switch to a fixed rate mortgage, for example, it’s guaranteed that your repayments will remain the same for a specified period of time, usually between two to ten years.
However, again, if you’re already on a deal and are thinking of switching early, you’ll need to be aware of any Early Repayment Charge and any other fees applicable - this is where our expert advisers can help!
Mortgages are based on a loan to value ratio or LTV. If the value of your property has increased since you purchased it and you’ve paid off a percentage of your mortgage, then you’ll own more equity in your home and your loan to value ratio will be lower. A lender will do a valuation of your home at the time you get a mortgage with them to confirm how much the property’s worth. The mortgage loan is then calculated as a percentage of that total value, e.g. if your mortgage is £150,000 and the property value is £200,000 then you would have an LTV of 75%. The lower the loan to value ratio of your property, the less risk it is as far as the lender is concerned, so typically the deals available to you will be better.
Want to build an extension or upgrade your bathroom? If you’re looking at doing home improvements then, provided you have enough equity in your property, it may be possible for you to remortgage and borrow more than you have on your current mortgage. You can then use the additional money to fund your renovation work.
Find out how much you could borrow
Work out your loan to value ratio
See the latest best buy remortgage deals
Typically, when you’re remortgaging, you’ll borrow the amount that is outstanding on your current mortgage - although as mentioned above, you could borrow more if you’re looking to release equity in order to fund home improvements. In general, the lower your loan to value (LTV) ratio, the better rate you’ll get on your remortgage. Most mortgage providers offer their best deals to borrowers with an LTV lower than 75%, although there are plenty of options for those with an LTV of 85% or 90%. As an expert mortgage adviser, we can advise you on whether a remortgage is possible for you and the best deal available to suit your needs. Just get in touch and we’ll help you discover your eligibility and remortgage options.
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