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Features: Calculators
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Repayment calculator |
This calculator can be used to help you assess whether it
is worth switching from one mortgage scheme to another. If
you choose to remortgage, your existing lender may charge
a redemption fee, there may be a charge from your new lender
and you will also have to pay legal and administrative costs.
These costs are called the switching costs. To measure whether
it is worthwhile remortgaging, the NPV (Net Present Value)
of any improved cash flow from the switch is compared with
the switch costs.
It is only worthwhile switching from an existing scheme to
a new one if the switch costs are low enough. This means that
the new scheme must produce enough savings over the expected
life of the new mortgage to cover the switching costs. This
calculator measures the NPV (Net Present Value) of any improved
cash flows resulting from the switch. A switch is only worthwhile
if the actual total switch costs work out less than the NPV
figure calculated. A negative figure implies that a switch
is only worthwhile if there is a cashback of at least that
figure paid out from the new scheme.
Please note: This calculator should be used for indicative purposes
only and should not be taken as representing advice. Always
get a full quotation from your lender or other professional
adviser before purchasing a remortgage product.
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