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Mortgage Rate Review Calculator

See how your monthly payment will change at your next rate change, based on the Bank of England base rate and your margin.

Base rate 4.00% June 2026

Details of your current mortgage

Bank of England base rate (illustrative, June 2026): 4.00%
The payment you make each month right now
How much of the mortgage you still have left to repay
Rate to model
Base rate (illustrative): ~4.00%

New monthly payment

£1,163
-£87/month
Current payment£1,250
Monthly difference-£87
New pay rate4.75%
Yearly saving£1,042

Important: This is a guide figure. Your exact new payment depends on the rate your lender applies on the day your deal changes and on your remaining balance at that point.

Field guide: how to use the rate review calculator

Understand each figure you need to model your next mortgage rate change

Outstanding balance

What you still owe

The amount of your mortgage you have not yet repaid. You will find it on your latest mortgage statement or in your lender's online banking under the loan details.

Example
If you borrowed £220,000 five years ago and have repaid £18,000 of capital, your outstanding balance is roughly £202,000.

Bank of England base rate

The reference rate

The base rate set by the Bank of England's Monetary Policy Committee is the benchmark that tracker mortgages and most standard variable rates (SVRs) move with. It is reviewed roughly every six weeks.

Example
Base rate 4.00%. If your tracker margin is +0.75%, your new pay rate is 4.75%.

Your margin

Your fixed add-on

On a tracker mortgage this is the fixed percentage added to the base rate. It is set out in your mortgage offer and does not change for the life of the tracker deal, even though the base rate does.

Example
With base rate 4.00% and a margin of +0.75% → pay rate 4.75%. With base rate 5.00% and the same margin → pay rate 5.75%.

Remaining term

Years left

The number of years left until your mortgage is fully repaid. Together with the outstanding balance and the new rate, it sets your new monthly payment.

Example
£180,000 over 20 years left at 4.75% → about £1,163/month; at 4.00% → about £1,091/month.

Lock in a fixed rate

If you expect rates to climb, ask your lender about a product transfer to a fixed deal. Many lenders offer competitive rates to keep you rather than lose you to a remortgage.

Overpay when your deal changes

The moment your rate is reviewed is a good time to make an overpayment, as it reduces the balance the new payment is calculated on. Most deals allow up to 10% a year penalty-free.

Remortgage as an alternative

If your lender will not offer a better rate, you can remortgage to another lender. A broker can compare the whole market and many remortgage deals come with free valuation and legal fees.

What a mortgage rate review is and when it happens

A mortgage rate review is the point at which the interest rate on your mortgage changes, and with it your monthly payment. On a tracker mortgage this happens whenever the Bank of England changes its base rate; on a standard variable rate (SVR) it happens when your lender decides to move its own rate; and at the end of a fixed-rate deal you revert to the lender's SVR, which is usually a sharp jump.

If you are on a variable or tracker rate, your payment is not fixed: it is recalculated against the new rate and your remaining balance. This calculator helps you anticipate how your monthly payment will change at the next rate change, so you can plan ahead or decide whether to switch deal.

Bank of England base rate history 2020–2026

The Bank of England base rate has been on a rollercoaster in recent years: from an emergency low of 0.10% during the pandemic, up to a 16-year high of 5.25% in 2023 as the Bank fought inflation, and gradually back down since. You can read about its history and method on Wikipedia: official bank rate. The Bank of England publishes the official rate after each Monetary Policy Committee meeting.

Period Base rate Context Trend
March 2020 0.10% Emergency pandemic cut
December 2021 0.25% First rise of the cycle
December 2022 3.50% Rapid hikes against inflation
August 2023 (peak) 5.25% 16-year high
August 2024 5.00% First cut of the easing cycle
December 2025 ~4.25% Gradual easing continues
June 2026 ~4.00% Settling after gradual cuts

Figures for December 2025 and June 2026 are illustrative; always check the latest official rate on the Bank of England website.

Worked example of a mortgage rate review

Let's see how a fall in the base rate affects a typical UK tracker mortgage. With an outstanding balance of £150,000, 20 years left and a margin of +0.75%:

Rate change: base rate 4.75% → 4.00%

Outstanding balance

£150,000

Remaining term

20 years

Margin

+0.75%

Old rate (4.75%+0.75%)

5.50% → £1,032/month

New rate (4.00%+0.75%)

4.75% → £969/month

Monthly saving

-£63/month

Yearly saving

-£756/year

Example: coming off a fixed deal onto the SVR

Outstanding balance

£200,000

Remaining term

22 years

Move

Fix → SVR

Old fixed rate

2.40% → £1,003/month

New SVR

7.25% → £1,512/month

Monthly increase

+£509/month

Yearly increase

+£6,108/year

Reverting to the SVR is usually the costliest outcome — remortgaging before your deal ends often avoids it.

Fixed, tracker and SVR: how each one is reviewed

How and when your rate changes depends on the type of deal you are on. The three most common in the UK are:

Fixed rate

Upside: your payment is locked for the deal period (typically 2 or 5 years).

Watch out: when the deal ends you revert to the SVR — usually a sharp jump.

Tracker

Upside: follows the base rate exactly, so you benefit straight away when it falls.

Watch out: your payment also rises immediately when the base rate goes up.

Standard variable rate (SVR)

Upside: no early repayment charges, so you can switch or overpay freely.

Watch out: the lender sets it, so it is usually the most expensive option.

Where to find your mortgage details

To use this calculator you need a few figures from your mortgage. Here is where to find them:

  • Mortgage offer / agreement: your margin, deal type, end date and any early repayment charges.
  • Annual mortgage statement: current payment, outstanding balance and the rate applied.
  • App or online banking: loan details, remaining term and the balance still owed.
  • Bank of England: the official base rate, published after each MPC meeting (bankofengland.co.uk).

What to do if you are worried about rate rises

If the uncertainty of a variable rate worries you, there are ways to protect yourself from future increases:

1

Switch to a fixed rate

A product transfer with your lender, or a remortgage to a new one, fixes your payment for 2 or 5 years. It is usually a little higher than the best tracker but gives certainty.

2

Lock in a deal up to 6 months early

Most lenders let you secure a new rate up to six months before your current deal ends, so you can avoid dropping onto the SVR even for a single month.

3

Overpay your balance

If you have savings, overpaying (usually up to 10% a year penalty-free) cuts your balance and softens the impact of any future rate rise.

Check the official Bank of England base rate

To know the exact rate that will apply when your deal changes, check the official page of the Bank of England — the official bank rate. It is the benchmark lenders use to set tracker and standard variable rates.

Note: This is a guide figure. Your exact new payment depends on the rate your lender applies, your remaining balance on the day the rate changes and the specific terms of your mortgage. This calculator is for information only and is not financial advice.

Frequently asked questions about mortgage rate reviews

We answer the most common questions about variable and tracker mortgage rate changes

The base rate is the benchmark interest rate set by the Bank of England's Monetary Policy Committee, reviewed roughly every six weeks. Tracker mortgages move with it exactly (base rate plus your fixed margin), and most lenders' standard variable rates broadly follow it. If the base rate rises your payment rises; if it falls your payment falls. Check the current rate at bankofengland.co.uk.
A tracker changes whenever the Bank of England changes the base rate, usually from the start of the following month. A standard variable rate (SVR) changes whenever the lender decides to move it. A fixed rate does not change during the deal, but at the end of the fixed period you revert to the SVR — which is when most people see the biggest jump.
Yes. You can do a product transfer with your existing lender or remortgage to a new one. There may be fees, and early repayment charges if you are still inside a deal period, so compare the total cost. With the base rate at moderate levels, fixing now can give budgeting certainty, although the fixed rate is usually a little higher than the best tracker available.
No, the margin is fixed for the life of a tracker deal (unless you agree a new product with the lender). What changes at each review is the base rate. Your new pay rate = current base rate + your fixed margin. So even though the base rate fluctuates, the margin you signed up to (for example +0.75%) always stays the same.
When a fixed deal ends you automatically move onto the lender's standard variable rate (SVR), which is usually much higher and can push your payment up sharply — sometimes by hundreds of pounds a month. To avoid this, line up a new deal to start the day your fix ends. Most lenders let you lock in a new rate up to six months ahead, so you never have to sit on the SVR.
Consider it when the fixed deals on offer are competitive against your current variable rate, when you need certainty over your monthly budget, or when you expect rates to rise. It is less attractive if the fixed rates available are well above your current rate, or if your remaining balance and term are small. Always compare the total cost of both options, and consider speaking to a mortgage broker.