LTV Calculator for Remortgaging

Loan-to-Value (LTV) Calculator

Calculate your LTV ratio to understand your remortgaging options and potential interest rates.

Your Loan-to-Value Ratio

Your LTV is calculated as (Remaining Loan ÷ Property Value) × 100

Remortgaging Implications

Important: Remember to check your current mortgage's early repayment charge (ERC) before switching lenders.

When you hear about remortgage, you probably wonder whether it’s a simple paperwork shuffle or a major headache. In plain terms, it’s the act of moving your existing home loan to a different lender, usually to chase a lower interest rate or better terms. Below we break down exactly how easy - or tricky - that switch can be, step by step, so you can decide if it’s worth the effort.

What Remortgaging Actually Means

Remortgage refers to replacing your current mortgage loan with a new one, often from a different lender, while keeping the same property as security. It’s not the same as refinancing a car loan or personal loan; the property stays on the hook, but the loan terms can change.

The key difference between a regular mortgage and a Mortgage is a loan secured against residential real‑estate, typically repaid over 25‑30 years is the purpose - a mortgage funds a home purchase, while a remortgage is a continuation of that loan with fresh conditions.

Key Steps in Switching Lenders

  1. Check Your Existing Deal - Look at the notice period and any early repayment charge (ERC). The Early Repayment Charge is a fee the current lender may impose if you exit the mortgage before the agreed term ends can eat into any savings.
  2. Assess Your Credit Score - Lenders will run a credit check. A higher Credit Score reflects how reliably you’ve repaid debts in the past, influencing the interest rate you’re offered means better rates.
  3. Calculate Your Loan‑to‑Value (LTV) - LTV = (remaining loan amount ÷ property value) × 100. A lower LTV (<80%) generally unlocks cheaper rates.
  4. Shop for New Offers - Use comparison sites or speak to a Mortgage Broker an intermediary who can match you with lenders and negotiate rates. Gather at least three quotes.
  5. Arrange a Valuation - The new lender will want a current valuation of your home. This Valuation confirms the property’s market value and helps the lender assess risk typically costs £150‑£300.
  6. Submit the Application - Provide proof of income, bank statements, the existing mortgage statement, and the valuation report.
  7. Legal Transfer (Conveyancing) - Your solicitor or licensed conveyancer will handle paperwork, request the settlement statement from the current lender, and ensure the new loan is registered with the land registry.
  8. Completion - Once the old lender releases the funds and the new lender’s loan is registered, the switch is complete. Your next repayment date will align with the new lender’s schedule.
Mortgage broker and client reviewing a valuation report and laptop in a bright office.

How Long Does It Take?

Typical timelines range from two to six weeks, depending on a few variables:

  • Paperwork readiness - If you have all documents on hand, you shave off days.
  • Lender responsiveness - Some lenders process applications faster, especially if they use digital underwriting.
  • Valuation speed - A quick online valuation can be done in a day; a full survey may take a week.
  • Conveyancing workload - Busy solicitors can add a week or two.

In a best‑case scenario with a responsive broker, fast valuation, and digital lender, you could finish in 14‑21 days. More complex cases - like self‑employed income verification or high‑value properties - often drift toward the six‑week mark.

Common Costs and Fees

Switching isn’t free, but the upside can outweigh the outlay. Below is a snapshot of typical expenses you might face.

Typical Costs When Switching Lenders
Cost Item Typical Amount (UK) Notes
Early Repayment Charge 0‑5% of remaining loan Only if you’re still in a fixed or discounted period.
Valuation Fee £150‑£300 Some lenders waive this for high‑value loans.
Legal/Conveyancing £500‑£1,000 Includes solicitor fees and land‑registry charge.
Broker Fee £0‑£400 or a % of loan Often free if you proceed with the lender’s product.
Administration Fee £0‑£200 Charged by the new lender for processing.

If the total upfront cost sits under £2,000 and you shave off even 0.5% interest on a £200,000 loan, you’ll break even in about three years. That’s why many homeowners still choose to switch.

Winding calendar timeline leading to a house, with coins floating to symbolize savings.

Factors That Make It Easy-or Hard

Not every mortgage is a perfect fit for a quick switch. Here are the main drivers:

  • Deal Type - Fixed‑rate deals with long notice periods often carry steep ERCs, making a switch costly.
  • Outstanding Balance - Large balances result in higher ERCs (percentage of a bigger amount).
  • Credit Health - A drop in credit score since your original application can lead to a higher interest rate, negating savings.
  • LTV Ratio - If your property value has fallen, the LTV rises, potentially disqualifying you from the best rates.
  • Employment Status - Self‑employed borrowers often face extra documentation, slowing the process.
  • Regulatory Changes - New rules (e.g., the 2025 mortgage market reforms) can affect lender criteria and fees.

When most of these variables line up favourably, the switch feels almost seamless. When they don’t, you might decide to stay put until a more opportune moment.

Checklist Before You Apply

  • Review your current mortgage agreement for ERC clauses and notice periods.
  • Request a recent valuation or obtain an online estimate of your home’s market value.
  • Check your credit report and dispute any errors.
  • Calculate your current LTV and aim for under 80% for the best rates.
  • Gather income proof: payslips, tax returns, or company accounts if self‑employed.
  • Contact at least three lenders or a reputable mortgage broker for quotes.
  • Ask each quote for a full breakdown of fees, including any hidden administration costs.
  • Confirm the estimated completion timeline with your solicitor.
  • Prepare a savings buffer (around £1,500‑£2,000) to cover upfront fees.

Having this list in front of you reduces surprises and keeps the process moving quickly.

Frequently Asked Questions

Can I remortgage if I’m still within a fixed‑rate period?

Yes, but most lenders charge an Early Repayment Charge for exiting early. Weigh the ERC against the potential interest savings; sometimes waiting for the fixed term to end is smarter.

Do I need a mortgage broker to switch lenders?

A broker isn’t mandatory, but they can save time by handling multiple applications, negotiating rates, and explaining fee structures. If you’re comfortable comparing offers yourself, you can go direct.

What documentation will the new lender require?

Typically you’ll need a recent payslip or tax return, bank statements (last three months), the current mortgage statement, proof of residence, and the valuation report. Self‑employed borrowers may need additional accounts or a SA302 form.

How much can I save by remortgaging?

Savings vary, but a 0.5% reduction on a £200,000 loan can shave off £1,000 per year. Over a typical five‑year horizon, that’s £5,000 - often enough to cover all switching costs.

Is it worth switching if my current rate is already low?

If your current rate is near market lows, you might not gain much. Focus on other benefits, like a more flexible repayment schedule or the ability to add extra payments without penalties.

Bottom line: Remortgaging can be as easy as a two‑week paperwork sprint or as involved as a month‑long project. By knowing the steps, costs, and timing, you can decide whether the potential savings justify the effort. If the numbers line up, the peace of mind that comes with a better rate is often worth the short‑term hassle.