Compare Two Mortgages
Which mortgage deal is cheaper once fees are included.
Your details
Deal A
Deal B
Over the 2-year deal
Deal A saves £191
Deal A · cheaper
- Monthly
- £1,087.96
- Payments in deal
- £26,111
- Fees
- £999
- Owed at end
- £190,671
- True cost
- £217,781
Deal B
- Monthly
- £1,121.91
- Payments in deal
- £26,926
- Fees
- £0
- Owed at end
- £191,047
- True cost
- £217,972
True cost adds fees, all payments in the deal period and the balance still owed at the end, so a lower rate with a big fee is compared fairly with a higher rate and no fee. Repayment mortgages only.
How it is worked out
- 1Each deal's monthly payment is worked out from the loan, rate and full mortgage term.
- 2The true cost over the deal adds the fees, every payment in the deal period and the balance still owed at the end.
- 3Including the balance means a deal that pays off more of the loan gets the credit for it.
Worth knowing
- Repayment mortgages only.
- Check early repayment charges and what rate you move to when the deal ends.
Common questions
Is a low rate with a big fee worth it?+
Usually on larger loans, and less often on smaller ones. Comparing the true cost over the deal, including the fee, shows the answer for your loan.
Sources
The rules and figures behind this calculator come from:
This comparison is a guide, not financial advice. It does not include every cost, such as early repayment charges or valuation and legal fees. Speak to a regulated mortgage adviser.
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