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Rate Change Calculator

Rate Change Calculator

Use the calculator below to input your mortgage details and explore how changes in interest rates could alter your monthly repayments.

Rate Change Calculator

Rate Change Calculator

See how interest rate changes affect your monthly mortgage payments

Mortgage Details

£
£50k £500k £1M
%
0.5% 8% 15%
%
0.5% 8% 15%
Years
Months

Payment Impact Analysis

Current Monthly Payment
£1,159
Your current monthly payment
New Monthly Payment
£1,787
Your monthly payment at the new rate
Monthly Change
+£628
Increase in monthly payment
Annual Impact
+£7,536
Additional yearly cost
Current Rate New Rate Difference
Interest Rate 2.15% 6.99% +4.84%
Monthly Payment £1,159 £1,787 +£628
Annual Payments £13,908 £21,444 +£7,536
Payment Increase Alert
Your monthly payment will increase by £628 (4.84% rate rise). This adds up to £7,536 extra per year. Consider exploring remortgage options to find a better deal.

Why Use a Rate Change Calculator?

Prepare for Rate Increases

Interest rates can rise, increasing your monthly mortgage costs. This tool helps you plan ahead.

Evaluate Fixed vs. Variable Rates

Use the calculator to compare potential costs if you’re considering switching to a fixed or variable-rate mortgage.

Improve Financial Planning

Understanding how rate changes impact your repayments enables you to adjust your budget and avoid surprises.

Example Scenarios

01

Scenario 1: Rate Increase Impact

  • Loan Amount: £200,000
  • Remaining Term: 25 years
  • Current Rate: 3%
  • Adjusted Rate: 4%
  • Current Monthly Repayment: £948
  • New Monthly Repayment: £1,055
  • Difference: +£107
02

Scenario 2: Rate Decrease Impact

  • Loan Amount: £200,000
  • Remaining Term: 25 years
  • Current Rate: 3%
  • Adjusted Rate: 2.5%
  • Current Monthly Repayment: £948
  • New Monthly Repayment: £897
  • Difference: -£51

Factors to Consider with Rate Changes

  • Fixed vs. Variable Rates
  • Fixed Rates: Provide stability but may lock you into a higher rate during a falling market.
  • Variable Rates: Can save money when rates decrease but increase costs when rates rise.
  • Loan-to-Value Ratio
  • Your LTV ratio affects the interest rates you’re offered. A lower LTV often means better rates. It also shows stronger equity in your property, giving you greater financial stability.
  • Early Repayment Options
  • If rates increase significantly, consider overpaying your mortgage to reduce your loan balance and future interest costs.

How Does the Rate Change Calculator Work?

Our calculator lets you test different interest rates to see how they impact your monthly mortgage repayments. Here’s how it works:
  • Enter Your Loan Amount: The total amount you’ve borrowed.
  • Input Your Loan Term: The remaining term of your mortgage in years.
  • Select Your Current Interest Rate: The rate you’re paying now.
  • Adjust the Rate: Use the slider or input box to see how different rates affect your payment.

The calculator displays

  • Current Monthly Repayment: Based on your existing interest rate.
  • Updated Monthly Repayment: Adjusted for the new rate you select.
  • Difference: How much more or less you’ll pay each month if rates change.

Benefits of Using the Rate Change Calculator

Clarity on Costs

Get a clear picture of how changing rates affect your finances, helping you make informed decisions.

Easy Budget Adjustments

Plan ahead by testing different rate scenarios to prepare for potential increases or decreases.

Better Decision-Making

Whether switching mortgage products or budgeting for future rate hikes, this tool provides the data you need.

0208 143 7779

Frequently Asked Questions

Yes, the calculator helps you estimate costs if your fixed term ends and you move to a new rate.
No, it focuses on monthly repayments. Consider additional costs, such as arrangement fees, separately.

The calculator provides close estimates based on your inputs. Always confirm figures with your lender.

Yes, simply input your loan details and adjust the rate to see how changes affect repayments.
Overpayments reduce your loan balance, potentially lowering future repayments. Consider consulting your lender about overpayment options.