What Is a Remortgage Calculator?
A remortgage calculator lets you work out an estimate of how much you could save by switching to a different mortgage rate. A mortgage adviser can help you with a final quote once you’ve made a decision.
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The Money Savings Advice Remortgage calculator is an estimate based on the information you have provided. A full Remortgage quote can be provided by one of our hand-picked Mortgage brokers who will also help with a full affordability assessment.
Are you looking to free up some of the money tied up in your home? If you remortgage, you can release the money tied up in your property, ideal if you need a cash lump sum and are willing to restart your loan term. Simply enter the approximate value of your home, and the remaining balance left to pay on your mortgage, and our calculator will tell you how much money you could release.
Remember that this is an estimated amount, and the actual value will depend on the mortgage you choose and other personal circumstances. If you want a full quote, you can speak to one of our hand-picked mortgage brokers who will carry out a full assessment of your situation.
They’ll look at your current mortgage deal and the estimated value of your home, as well as any other factors that may influence the deals available, to let you see exactly how much you could get.
There’s a number of reasons you might remortgage, and it’s up to you whether you then take out a lump sum that you’ve got tied up in your property (with our calculator providing an estimate of how much you could get) or whether you continue with the current value tied in your home and just aim to change the terms of the agreement.
It could just be that you want a better mortgage rate. By remortgaging, you could end up on a lower interest rate, or you may change the type of mortgage to better take advantage of market conditions. It’s normal for people to move on when their current mortgage deal ends, as they are often placed onto a Standard Variable Rate which usually isn’t the best deal that you could get.
It may be that you’re entitled to a better interest rate as you’ll be borrowing on a lower loan-to-value. As you’ve made repayments, and potentially the cost of your home has increased, you may end up remortgaging for a lower percentage of the home’s value. By doing this, you might have access to better rates that you couldn’t qualify for when you last took out a mortgage.
Remortgage to Get More Flexibility
Alternatively, you may wish to remortgage to get more flexibility in your deal. Some mortgages don’t let you vary your repayments while others do. So if you’ve suddenly had a promotion, you might want to move to a mortgage that lets you make overpayments. By remortgaging and making overpayments, you would then be shortening the length of your mortgage deal and ending your repayments sooner.
If you decide to remortgage to unlock some of the value of your home, then you may just wish to use the cash to renovate your property. Remortgaging to make home improvements means you’ll also be increasing the value of your home once you’ve struck the deal, so while your loan is increasing in the short term, it might mean that long-term you can make a return when the time comes to sell your property.
Finally, some people choose to remortgage and take out a lump cash sum in order to pay off their other debts. This is a form of debt consolidation since you’re taking out more of a loan against your property to clear your unsecured debts.
Remember though that, while the interest rate on your property might look attractive compared to those loans and credit cards you have, you’ll be paying it off over a longer period of time. Our financial partners can give you more advice on whether it actually makes sense to remortgage with a view to consolidating debts.
Types of Remortgages
When you first took out your mortgage, you may have been told that a certain type of mortgage was best for you, or perhaps your options were limited due to your financial circumstances. Remortgaging gives you the opportunity to move to a more suitable type that your current mortgage deal.
If you’ve automatically been placed on a Standard Variable Rate (SVR) mortgage, then moving to a fixed-rate mortgage could save you money each month. You might find that a capped or collared mortgage offers you some more flexibility without the concerns of any extreme fluctuations, while you could get a discounted rate mortgage to lighten the repayment load for a couple of years while the discount is active.
We work with trusted financial partners who can explain the different mortgage options available to you, and how each would benefit you, so get in touch if you’re thinking of remortgaging and want to know more.
We could help you save money every month on your repayments, and find a way to clear your mortgage sooner with years shaved off your deal. And don’t forget, our calculator can tell you how much value you could claim if you remortgage in full.
Need More Help?
If you still need more help with remortgaging, don’t despair. First, check out the rest of our guides on remortgaging, which go into a lot more detail on the types of remortgage options available to you. Find out more about the fixed and variable mortgages out there and why it might make sense for you to switch and remortgage now, to save yourself money in the long run or free up cash to use. We also have guides on the dangers of remortgaging too early, and what to do if you’ve built up bad credit but want to remortgage.
How Can Money Savings Advice Help You With A Remortgage?
Here at Money Savings Advice, we have partnered with some of the UK’s leading mortgage brokers. They have already helped thousands of people get the best remortgage deal and they can do the same for you.
Choosing an independent adviser means they won’t recommend a mortgage unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.
If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.