Is it worth paying the ERC to remortgage now?

If a much cheaper deal is available but you're tied to a fix, this calculator tells you how many months until a remortgage pays for itself, Early Repayment Charge and fees included.

Current deal

What you're paying now.

£
%
mo
%

New deal

%
£
25 years
Break-even point
0months
until remortgaging pays for itself
Total switch cost
£0
Monthly saving
£0
ERC to pay
£0
Verdict
Switch
Rule of thumb

If break-even is quicker than your remaining fix period, stay put. If it's longer than the new fix you'd lock into, switching is a gamble.

Breaking a fix early: when is it worth it?

Remortgaging mid-fix is expensive. You pay the Early Repayment Charge on your current deal, plus product fees and legal costs on the new one. The question is whether the monthly saving on the new rate pays that back fast enough to be worth the trouble.

Where the numbers come from

The break-even maths is straightforward: add the ERC (typically 1–5% of your outstanding balance) plus any fees on the new deal (£500–£1,500 is typical). Divide that total by your monthly saving on the new rate. The answer is how many months it'll take before you're ahead.

If that number is shorter than the months left on your current fix, switching makes sense. If it's longer, you're usually better off waiting.

Don't forget product portability

Many fixed-rate deals are "portable", you can take them with you if you move home within the fix period, rather than paying the ERC. Ask your lender before assuming you're stuck.

The hidden upside: cheaper monthly payments now

Even if the break-even is marginal, switching gives you immediate monthly cash-flow relief. That matters more to some households than others. If a 5.5% rate is stressing your budget, moving to 4.2% today has non-financial value you won't see in the calculator.

Things the calculator can't see

Who to talk to next

If the break-even looks favourable, a whole-of-market broker can usually match or beat the rate you found. The FCA has a consumer guide to mortgages covering what to watch for, and MoneyHelper's remortgage page explains the process end-to-end.

Related

See the LTV threshold calculator, dropping an LTV band before you remortgage can unlock significantly cheaper rates, which changes the break-even equation completely. Also worth checking your lender's specific ERC schedule rather than using a generic estimate.