Mortgage Calculator | How much could you save? – Forbes UK Advisor

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If you’re a homeowner, remortgaging on a better mortgage deal when your current mortgage expires could save you hundreds of pounds in interest every month.

Indeed, you will avoid going back to the lender’s standard variable rate. SVRs are invariably much higher than the cost of new mortgage deals, such as fixes or trackers, that lenders offer.

mortgage calculator

Our mortgage calculator will give you an indication of how much you could save by switching to a mortgage with a cheaper interest rate. Learn more about how to use it, below.

How to use the calculator

Our mortgage calculator is easy to use. Simply enter:

  • the interest rate you pay on your existing mortgage
  • the amount you pay each month
  • the outstanding balance of your current offer, and
  • how long is left until the mortgage is cleared.

Then enter the interest rate for the new mortgage and how many years you want this new contract to last.

If the new rate is significantly lower, you may want to reduce the term of the mortgage, say from 20 years to 15 years. If you did, your monthly payments might not go down, but you’d pay off your debt faster and pay less interest overall. .

Next, add any costs associated with the mortgage, such as arrangement or appraisal fees. There’s also a space for brokerage fees, but many brokers, including our mortgage partner, Trussle, don’t charge clients, instead taking their fees from the lender.

If you have to pay a prepayment charge to get out of your current contract, enter that too. Depending on how much time you have left, this fee may not be worth paying for what the new deal will save you.

Finally, hit the “Calculate” button to find out what you can save each month in mortgage payments and how much interest you can save overall.

The calculator will also tell you how many months it will take to recover the fees you paid to access the new offer.

Just keep in mind that the numbers are representative only. The exact numbers will be determined by the individual lender and your personal circumstances, such as income and credit score.

Compare the market for the best offer

After seeing how much you could save, click the green “Show Deals” button to see what mortgage deals are currently on the market.

Casting your network as wide as possible in your search for a new mortgage is key to getting the best deal. Trussle sources over 1,200 mortgages from approximately 90 lenders.

Although going to a new lender requires new identity and affordability checks, a good mortgage broker will guide you through this process. At Trussle, you can follow the progress of your application from your online profile. This is also where you upload all relevant documents in digital format and where you exchange messages.

With the cost of living rising, the time and effort spent getting the mortgage that’s right for you will soon pay dividends, whether it’s greater flexibility, money in your pocket or both.

Free mortgage advice

Trussle is a Trustpilot 5-star rated online mortgage advisor who can help you find the right mortgage – and do all the hard work with the lender to secure it. *Your home can be repossessed if you don’t continue to pay your mortgage.

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