Facebook-f X-twitter Instagram Linkedin-in
Contact Title
Call any time 0208 143 7779

Rate Change Calculator

Worried about how interest rate changes might affect your mortgage payments? Our *Rate Change Calculator* helps you understand the potential impact of rate fluctuations, giving you the clarity and confidence to plan your finances effectively.

Rate Change Calculator

Use the calculator below to input your mortgage details and explore how changes in interest rates could alter your monthly repayments.
// Calculator Logic // Interest-only Mortgage // Display savings message for negative payment difference // Display cost increase message for positive payment difference // If the difference is zero
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.

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.

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

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

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 (LTV)
  • Your LTV ratio affects the interest rates you’re offered. A lower LTV often means better rates.
  • Early Repayment Options
  • If rates increase significantly, consider overpaying your mortgage to reduce your loan balance and future interest costs.

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.

Frequently Asked Questions

Can I use the calculator for fixed-rate mortgages?
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.
  • Auction Finance specialises in structured financing solutions for property auctions. Our expert team prioritises a client-focused approach, offering competitive rates and flexible options for quick and efficient funding. Whether you're bidding on residential, commercial, or land, we are committed to supporting your auction success.

Quick Links

Our Services
Follow Us
Facebook-f X-twitter Instagram Linkedin-in
  • THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
  • YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
  • We are a credit broker not a lender.
  • The FCA does not regulate most Buy to Let mortgages.
  • Authorised and regulated by the Financial Conduct Authority FCA reg. 994617.
  • 5 Century Court, Tolpits Lane, Watford, WD18 9PX. Registered in England, No 14667048
  • We always aim to provide a high-quality service to our customers. However, if you encounter any problems and we are unable to resolve them, you can take your complaint to an independent ombudsman. Our advice is covered under the Financial Ombudsman Service.

(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd