Mortgage Comparison Calculator
Compare two mortgage options side-by-side. Instantly evaluate monthly payments, total interest, and upfront fees to discover the true cheapest deal for your situation.
Compare Your Mortgage Deals
Enter the details of the two mortgage options you are considering. The calculator will factor in both the interest rate and any upfront fees to reveal the true long-term cost.
Deal Comparison Solver
Evaluate the real cost of different rates and fee structures
Comparison Quick Facts
Essential insights into evaluating mortgage deals
Understanding True Mortgage Costs
The advertised interest rate is only half the story. Here is how to properly evaluate and compare two mortgage offers.
Calculate the Monthly Payment
Using the standard amortisation formula, we determine your exact monthly repayment based on the loan amount, term, and specific interest rate of each option.
Project Total Interest Paid
Multiply the monthly payment by the total number of months, then subtract the original loan amount. This reveals how much the bank earns from you over time.
Add Upfront Fees
Arrangement, valuation, and legal fees are added to the total cost. A deal with a slightly higher rate but zero fees can often beat a “low rate” deal with £2,000 in fees.
Declare the Winner
The calculator compares the “Total Overall Cost” (Total Repayments + Fees) of both options and highlights the one that saves you the most money.
UK Mortgage Types Compared
A quick overview of common mortgage structures to help you decide which options to plug into the calculator.
| Mortgage Type | Rate Stability | Typical Fee Profile | Best For |
|---|---|---|---|
| 2-Year Fixed | Guaranteed for 2 years | Low to Medium (£0 – £999) | Those planning to move or remortgage soon. |
| 5-Year Fixed | Guaranteed for 5 years | Medium to High (£999 – £1,999) | Long-term budgeters wanting payment certainty. |
| Tracker (BoE) | Varies with Base Rate | Low (£0 – £499) | Borrowers who can absorb potential rate rises. |
| Standard Variable (SVR) | Lender’s discretion | Usually no fees | Short-term bridging or waiting for a better deal. |
Mortgage Comparison FAQ
Answers to the most frequently asked questions about comparing mortgage deals and understanding hidden costs.
It depends on how long you plan to keep the mortgage. A lower interest rate saves you money every month, which adds up significantly over a long term. However, if you plan to remortgage or move home in a few years, a mortgage with higher rates but zero or low upfront fees might be cheaper overall.
Arrangement fees (typically £0 to £2,000) can be paid upfront or added to the loan. If added to the loan, you will pay interest on that fee over the entire mortgage term, making it more expensive in the long run. Our calculator allows you to factor in these fees to see the true total cost.
This calculator focuses on the base cost of the new mortgage deals (rate and fees). If you are remortgaging, you should manually subtract any Early Repayment Charges from your current lender from the ‘savings’ total to get a fully accurate picture.
We use the standard amortisation formula: M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ], where P is the principal loan amount, r is the monthly interest rate, and n is the total number of monthly payments.