How Much Can You Save by Remortgaging in 2026?

The Savings Available from Remortgaging

The single most common financial benefit available to UK homeowners in 2026 is remortgaging from a recently expired deal — or from the standard variable rate — to a competitive fixed-rate product. For borrowers whose deal has already expired and who are sitting on their lender's SVR, the savings can be dramatic.

Use our [remortgage savings calculator](/remortgage-calculator) to enter your current balance, rate, and proposed new rate for an immediate estimate of your monthly and cumulative savings.

SVR vs Best Fixed Rate: The Core Comparison

Most UK lenders' Standard Variable Rates (SVRs) in 2026 sit between **7.0% and 8.5%**. The best five-year fixed-rate remortgage products for borrowers with 25%+ equity (75% LTV) are currently in the range of **3.9% to 4.5%**.

The difference of 2.5–4.5 percentage points generates meaningful savings on any significant balance.

**Example: £200,000 outstanding balance, 20 years remaining**

Monthly saving by remortgaging from SVR to a five-year fix: approximately **£361/month = £4,332/year**.

Over a five-year fixed term: **£21,660 total saving** — less arrangement fees and any legal costs.

How Your LTV Affects the Saving

The lower your loan-to-value ratio, the better the rate available, and therefore the larger the saving from remortgaging.

**Same £200,000 balance, varying LTV:**

• 95% LTV (5% equity): best 5-year fix ~5.0% — monthly payment ~£1,319
• 85% LTV (15% equity): best 5-year fix ~4.5% — monthly payment ~£1,266
• 75% LTV (25% equity): best 5-year fix ~4.1% — monthly payment ~£1,225
• 65% LTV (35% equity): best 5-year fix ~3.9% — monthly payment ~£1,197

The difference between 95% LTV and 65% LTV on this example is approximately **£122/month = £1,464/year = £7,320 over five years**.

If you have been making overpayments or your property has increased in value, recalculating your LTV before remortgaging is important — you may qualify for a better tier than your previous remortgage.

Worked Example: Real Savings Over Five Years

**Borrower profile:**

• Remaining mortgage: £175,000
• Current position: two-year fix expired three months ago, now on SVR at 7.75%
• Current monthly payment: ~£1,427
• LTV: 72% (property value £243,000)
• Target: five-year fix at 4.0% (75% LTV band, they qualify)
• New monthly payment: ~£1,062

Monthly saving: **£365**

Annual saving: **£4,380**

Over five years: **£21,900**

Less: arrangement fee £999, legal £0 (using lender's free service)

**Net saving over five years: £20,901**

This borrower has been on SVR for three months, costing approximately £1,095 more than necessary (£365 × 3). The urgency of remortgaging promptly is illustrated clearly.

Savings When Moving Between Fixed Deals

Many borrowers are not on the SVR — their five-year fix is expiring and they want to know the saving from moving to the current market's best available rate rather than reverting to SVR.

**Example:**

• Five-year fix locked in at 2.1% (2020) expiring in 2025
• Outstanding balance: £160,000
• Current monthly payment (capital + interest, 20-year term): ~£812
• New five-year fix at 4.2%: ~£989

Monthly payment **increase** of £177. This borrower faces higher costs — the market has moved against them. The saving here is not versus a current deal but versus the SVR they would revert to (at ~7.75%, monthly payment would be ~£1,297 — so the new fix still saves £308/month versus SVR).

This illustrates that for borrowers on very low fixed rates from 2020–2022, remortgaging represents a payment increase, not a saving. The choice is between a competitive new fix or a punishing SVR — and the fix is still the right answer.

Fees That Reduce the Saving

When calculating net savings:

• **Arrangement fee:** £0–£1,499 depending on product; some fee-free products available at slightly higher rates
• **Legal fees:** usually free when using lender's panel solicitors for like-for-like remortgages; £300–£500 if using own solicitors
• **Valuation fee:** usually free; occasionally £150–£300 for complex valuations
• **Broker fee:** £0–£500 for many straightforward cases

**Should you take a fee-free product at a higher rate or a fee product at a lower rate?**

Break-even calculation: Arrangement fee ÷ Monthly saving from lower rate = Months to recoup the fee.

On a five-year fix: if paying a £999 fee saves £30/month, it recoups in 33 months — well within the five-year term. Worth taking.

If paying a £999 fee saves £8/month, it recoups in 125 months — beyond the fixed-rate term. Not worth taking.

Use our [remortgage savings calculator](/remortgage-calculator) to model the fee versus rate trade-off for your specific balance and deal options.

How to Get the Best Remortgage Rate

• **Start shopping three to four months before expiry** — time to compare properly and not be rushed
• **Use a whole-of-market broker** — they can access the full market; direct lender channels may not show you every deal
• **Check your LTV accurately** — request an up-to-date valuation if property prices have risen; a revaluation that confirms a lower LTV can unlock a better rate
• **Consider both two-year and five-year fixes** — in 2026 with rates potentially declining further, a two-year fix protects you for less time but allows you to capture lower rates sooner
• **Compare the total cost, not just the rate** — factor in all fees over the fixed-rate period