Interactive Calculators: Remortgage Costs

This calculator can be used to help you assess whether it is worth switching from one mortgage scheme to another. If you choose to remortgage, your existing lender may charge a redemption fee, there may be a charge from your new lender and you will also have to pay legal and administrative costs. These costs are called the switching costs. To measure whether it is worthwhile remortgaging, the NPV (Net Present Value) of any improved cash flow from the switch is compared with the switch costs.

It is only worthwhile switching from an existing scheme to a new one if the switch costs are low enough. This means that the new scheme must produce enough savings over the expected life of the new mortgage to cover the switching costs. This calculator measures the NPV (Net Present Value) of any improved cash flows resulting from the switch. A switch is only worthwhile if the actual total switch costs work out less than the NPV figure calculated. A negative figure implies that a switch is only worthwhile if there is a cashback of at least that figure paid out from the new scheme.

Current scheme

Current loan outstanding

Anticipated switch costs

Remaining months to the end of the term

Rests per annum

Current interest rate

Months before change of rate

Subsequent interest rate

New scheme

Rests per annum

Interest rate on new scheme

Initial period

Subsequent interest rate

Expected life of mortgage scheme in months (min 34 mths, max 332)

Break even switch costs

Interest only

Repayment

Calculate

Calculations - interest only payments

Current scheme payments:
/ month	for months, then	per month thereafter
New scheme payments:
/ month	for months, then:	per month thereafter
Cashflow saving:
/ month	for months, then	for months
followed finally by -	for	months to end of the life
Total:
saving over a	month period

Calculations - capital repayment with rests as given

Current scheme payments:
/ month	for months	then per month thereafter


Current scheme outstanding loan capital:
after	months
finally:	after months
New scheme payments:

/ month

for months

then per month thereafter

New scheme outstanding loan capital:
after	months
finally:	after months
Overall: capital saving
Cashflow saving:

/ month	for months	then for months
		then for months
to the end of the life
Total: saving over		a month period

Please note: This calculator should be used for indicative purposes only and should not be taken as representing advice. Always get a full quotation from your lender or other professional adviser before purchasing a remortgage product.

Interactive Calculators: Remortgage Costs

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