Remortgage Calculator UK 2026

As of 8 April 2026, based on HomeOwners Alliance and L&C data (updated daily): the best 2-year fixed remortgage rate is 4.79% from NatWest (fees £490). The average 2-year fixed remortgage rate is 5.84% and the average 5-year fixed remortgage rate is 5.75% (both Moneyfacts, 8 April 2026). The Bank of England base rate was held at 3.75% at the March 2026 MPC meeting.

Notably, average 2-year rates have risen slightly above average 5-year rates in early April 2026 due to geopolitical and economic uncertainty raising swap rates. Rates change daily — always get personalised quotes from a whole-of-market broker. Many fee-free brokers (such as L&C) charge no fees to you and compare deals from across the market.

Typical remortgage costs when switching to a new lender: arrangement/product fee (£0–£2,000 — can be added to the mortgage); valuation fee (often free for remortgages, otherwise £150–£500); legal/conveyancing fees (£300–£1,000 — often covered free by the new lender); exit/discharge fee from your current lender (typically £0–£300); and potentially an Early Repayment Charge (ERC) of 1–5% of your outstanding balance if leaving during a fixed deal.

No stamp duty applies to remortgaging (only to property purchases). Many best-buy deals include free valuation and free legals, reducing your out-of-pocket cost to just the arrangement fee or zero. Sources: HomeOwners Alliance remortgage costs guide, L&C remortgage costs, Compare My Move solicitor fee guide.

An Early Repayment Charge is a penalty your lender charges if you pay off or switch away from your mortgage during the initial fixed or introductory period. ERCs typically range from 1% to 5% of the outstanding balance, reducing by 1% each year of the deal. For example, on a 5-year fix: 5% in year 1, 4% in year 2, down to 1% in year 5. On a £200,000 balance, a 3% ERC is £6,000.

To work out whether switching despite an ERC is worthwhile, calculate how many months of savings it takes to repay the ERC — this is your payback period. If you plan to stay on the new deal for longer than the payback period, switching makes financial sense. Use the ERC analysis in our calculator above. Source: HomeOwners Alliance ERC guide, Moneyfactscompare.

Lenders offer their best rates at 60% LTV (Loan-to-Value) or below. Rates step up at LTV thresholds of 65%, 70%, 75%, 80%, 85%, 90%, and 95%. Each band step typically adds 0.15–0.30% to the interest rate. For example, moving from 70% to 65% LTV could save you around 0.20% — on a £200,000 mortgage that's approximately £30–£40 per month.

If your property has risen in value since you took out your mortgage, you may have moved into a better LTV band. Our calculator shows your current LTV and how far you are from the next lower band. If you are close to a lower band threshold, overpaying your mortgage to cross it before remortgaging could save you significantly on rates. Source: sum.money remortgage calculator, My Mortgage Sorted remortgage guide (2026).

There is no universal right answer, but here is a practical framework for April 2026: Average 2-year fixed rates (5.84%) are actually slightly above average 5-year rates (5.75%) — an inversion caused by market uncertainty and expectations of future base rate cuts. Historically, 5-year rates are higher as lenders charge for certainty.

A 2-year fix makes sense if you believe rates will fall meaningfully in 2 years (BoE expected to continue cuts toward 3.5% by late 2026), you plan to move home, or you want flexibility. A 5-year fix makes sense if you value payment certainty, want to avoid fees every 2 years, or aren't confident about rate forecasts. Many experts favour 5-year fixes in 2026 for stability — but a whole-of-market broker can model both options with your specific numbers. Source: Moneyfacts/Moneyfactscompare (8 April 2026), HOA mortgage rate forecast.

Yes, though your options may be more limited. For self-employed applicants, most lenders require 2–3 years of accounts (SA302 forms and tax overviews from HMRC) to verify income. Some specialist lenders are more flexible. If your circumstances have changed significantly since your last mortgage, a product transfer with your existing lender (who already knows your history) may be easier than a full remortgage with a new lender requiring full re-underwriting.

For borrowers with adverse credit (missed payments, CCJs, defaults), a specialist broker is essential to find lenders who will accept your application. Rates will typically be higher, but significantly better than an SVR. Your credit improves over time — even waiting 6 months can make a material difference to available rates. Free credit reports from Experian, Equifax, or TransUnion will show your current score and history. Always check your credit file before applying to avoid rejected applications adding further marks.

Reducing your monthly mortgage payment through remortgaging directly improves your monthly cashflow — potentially freeing money for pension contributions. Every £100/month saved on mortgage repayments could be redirected to a pension SIPP, where it receives 20–45% tax relief and grows tax-free. Over 15–20 years, this can make a material difference to retirement outcomes.

If you are approaching retirement, also consider whether to shorten your mortgage term (paying off faster) or extend it to reduce payments. Many homeowners in their 50s also combine remortgaging with retirement planning — the decision affects how much mortgage-free equity they will have in retirement. Use our SIPP Calculator to model pension growth, our Drawdown Calculator for retirement income, and our Retirement Age Calculator to plan the right retirement date alongside your mortgage payoff.