Mortgage refinancing: calculator, process and costs

Refinancing means that a new loan repays your existing mortgage. You can move it to another bank or agree new terms with your current lender. A comparison is useful only if it includes costs, the same time horizon and the remaining balance.

Compare the current and proposed loan

Enter the balance and remaining term of your current mortgage, its rate and fixation end date. For a new offer, use the quoted rate, fixation, term and required services. The calculator above compares payments and balances over your chosen period; its result depends on the inputs you provide.

Include early-repayment charges, land registry costs, a new valuation, arrangement fees, account costs and required insurance. If a fee is financed by the new loan, compare the higher balance too. A lower payment created by extending the term is not by itself a saving.

Refixing or changing banks

When fixation ends, your current bank will offer a new rate. You can ask it for better terms or request an offer elsewhere. Changing the rate within the same contract differs from signing a new loan. Ask for a written offer and compare the same remaining term.

You can refinance during fixation, but early repayment may incur costs. The law limits those costs and sets out when repayment can be free. See early mortgage repayment.

Documents and assessment

A new bank checks your income, liabilities and property under its own rules. Some banks describe a simplified application for customers with a good repayment record, but they still assess affordability. An offer described as requiring no income documents does not mean automatic approval.

Ask which balance statement and lien documents are needed, who files the new land-registry application and when funds will be sent to the old bank. A top-up or other change can add document requirements.

Tax bonus and mortgage assistance

A new loan does not automatically continue the tax or payment support attached to the old one. The law distinguishes changing the same contract from signing a new contract; switching lenders may affect the interest tax bonus or payment assistance. Get the specific case checked before signing, and do not count an uncertain benefit as a guaranteed saving.

If you need extra money as well, compare a mortgage top-up. See bank offers in the mortgage-rate comparison.