Remortgage Calculator

An Early Repayment Charge is a fee you pay to your lender if you repay your mortgage before the fixed or discount period ends. ERCs typically range from 1-5% of the outstanding balance, decreasing each year. For example, a 3% ERC on a £200,000 mortgage would cost you £6,000.

It may be worth paying an ERC if the interest savings on a new lower rate exceed the cost of the ERC plus fees. This calculator helps you compare both scenarios. Consider switching early if: rates have dropped significantly, your fixed period has many months remaining, or you need to release equity.

We compare two scenarios: 1) Staying on your current rate until the fixed period ends, and 2) Switching now and paying the ERC. The switch cost includes the ERC charge, any new product fees, and interest on the new rate from today until your original fixed rate would have ended. If the switch cost is lower, it may be worth switching early.

When your fixed rate ends, you'll typically move to your lender's Standard Variable Rate (SVR), which is usually significantly higher - often 7-8%. That's why most people remortgage before their fixed rate ends to secure a new competitive deal.

Adding the fee to your loan means you don't pay upfront, but you'll pay interest on it for the life of the mortgage. For short mortgage terms or large fees, it may be better to pay upfront if you can afford it. Use this calculator to compare both options.