Mortgages & property
Compare two mortgages — total cost calculator
The headline rate is only part of the story. Comparing two mortgages properly means looking at the total cost — monthly payment, product fee and the balance left at the end of the initial deal period.
Mortgage B is cheaper by £286.41 over 2 years.
Compared over the shorter of the two deal lengths (2 years) so you are comparing like with like.
- A monthly payment
- £1,250.43
- A total cost over 2yr
- £31,009
- A balance at end
- £241,591
- B monthly payment
- £1,280.12
- B total cost over 2yr
- £30,723
- B balance at end
- £241,875
| A: total payments + fee | £31,009 |
|---|---|
| A: interest paid in period | £21,602 |
| B: total payments + fee | £30,723 |
| B: interest paid in period | £22,598 |
| Difference over the comparison period | £286.41 |
Total cost includes monthly payments over the initial deal plus the product fee paid upfront. The headline rate alone can be misleading when fees differ — always compare like-with-like over the same number of years.
How it works
- We compute the monthly payment for each deal over your chosen term using the standard amortisation formula.
- We then total all payments over the shorter of the two initial deal lengths so the comparison is like-with-like, and add the product fee on top.
- We also show the balance remaining at the end of the period — useful when remortgaging because that is the figure you will refinance.
Common questions
- Should I always pick the lower total cost?
- Not necessarily. A 5-year fix gives you certainty against rate rises but is usually more expensive on paper than a 2-year fix if rates fall. Cost is only one factor.
- Why is the balance at the end different?
- A higher rate means more of each payment is interest, so less of the balance is paid down. Over a 2-year period the difference can easily be £2,000–£5,000.
- Does this include valuation, legal and broker fees?
- No. Those are usually one-offs that depend on the lender's incentives (free valuation, free legals on remortgage). Add them on top when comparing real-world costs.