On £200,000 with 25 years left, moving from 6.5%, the middle rate the deals here move to when they end, to today’s lowest 2-year fixed rate, 5%, saves £181 a month. Work out yours, after the fee and any early repayment charge.
Staying at 6.5%, the middle rate the deals here move to when they end, against today’s lowest 2-year fixed rate for a loan of up to 75% of the home’s worth, 5% with a £1,495 fee paid up front, with 25 years left. Better off over the deal counts the lower payments, what is still owed at its end, and the fee.
| You owe | Staying | Switching | Better off over 2 years |
|---|---|---|---|
| £100,000 | £675 a month | £585 a month | £1,496 |
| £150,000 | £1,013 a month | £877 a month | £2,992 |
| £200,000 | £1,350 a month | £1,169 a month | £4,488 |
| £250,000 | £1,688 a month | £1,461 a month | £5,983 |
| £300,000 | £2,026 a month | £1,754 a month | £7,479 |
| £350,000 | £2,363 a month | £2,046 a month | £8,975 |
| £400,000 | £2,701 a month | £2,338 a month | £10,470 |
Today’s lowest 2-year fixed rate for a 75% loan is 5% with a £1,495 fee; the lowest with no fee is 5.1%. On £200,000 with 25 years left, the no-fee deal leaves you £1,097 better off over the 2 years. The fee deal costs less only on a loan above £752,000: below that, the lower rate does not repay the fee within the deal.
A deal charges for leaving before it ends. The commonest charge on the 2-year fixes here is 2% of what you owe in the first year: £4,000 on £200,000. Paying that and today’s lowest deal’s fee is worth it over a new 2-year deal only if your rate now is about 1.39 percentage points or more above today’s lowest. Put your own charge in the calculator to see your case.
The new deal’s product fee, any early repayment charge, and any valuation, legal or broker costs. Of the 217 2-year fixes read here, 96 charge no product fee and the middle fee is £995. All 97 deals that state a valuation fee charge none. A fee can be paid up front or, where the lender allows, added to the loan, where it is charged interest. Each deal’s fees, lender by lender
A product transfer is a new deal with the lender you already have; a remortgage moves the loan to another lender, and can choose from all of them. Both end the old deal, and both are compared the same way: the new payment, its fee, and any charge for leaving early. Put each offer’s rate and fee in the calculator to see which leaves you better off.
On £200,000 with 25 years left, moving from 6.5%, the middle rate the deals here move to when they end, to today’s lowest 2-year fixed rate for a 75% loan, 5%, lowers the payment from £1,350 to £1,169 a month. Over the 2 years that is £4,488 better off after the £1,495 fee.
Switching pays when the lower payment covers the new deal’s fee and any early repayment charge before the deal ends: the calculator works out your own case and the month the costs are paid back. Staying on a rate like 6.5% costs £181 a month more than today’s lowest on £200,000.
Before your current deal ends, so the loan never moves to the lender’s variable rate. On £200,000 with 25 years left, each month at 6.5%, the middle rate the deals here move to, costs £181 more than today’s lowest deal. Leaving a deal before it ends can cost an early repayment charge.
The new deal’s product fee, any early repayment charge for leaving your current deal early, and any valuation, legal or broker costs. Of the 217 2-year fixes read here, 96 charge no product fee and the middle fee is £995; all 97 deals that state a valuation fee charge none.
Only on a loan big enough for the lower rate to repay the fee within the deal. Today’s lowest 2-year fixed rate for a 75% loan, 5%, has a £1,495 fee; the lowest with no fee is 5.1%. Over the 2 years the fee deal costs less only on a loan above £752,000.
A charge for leaving a deal, or repaying more than its allowance, before it ends, as a percentage of what you owe. The commonest on the 2-year fixes here is 2% in the first year: £4,000 on £200,000. To pay that back over a new 2-year deal, with its fee, your rate would need to be about 1.39 percentage points above today’s lowest.
Where the lender allows it, the product fee can be added to the loan instead of paid up front. You then pay interest on it for as long as you owe it; the calculator works out both ways.
A product transfer is a new deal with the lender you already have; a remortgage moves the loan to another lender, and can choose from all of them. Put the rate and fee of each offer in the calculator to compare them.