How do I compare two mortgage deals fairly?

Compare the total cost over the same window - usually the fixed-rate period (e.g. 2 or 5 years) - not just the headline rate. Add up the monthly payments over that window plus any arrangement or product fee. A lower rate with a big fee can end up dearer than a slightly higher fee-free rate over a short fix.

Should I include the arrangement fee?

Yes. A product/arrangement fee (often £999-£1,499) materially changes which deal is cheaper, especially over a short fixed period where the interest difference is small. This calculator adds each deal's fee to its payments over the horizon.

What horizon should I use?

Use the length of the fixed-rate deal you are comparing - most people remortgage at the end of the fix, so the cost that matters is what you pay during it. A 2-year comparison and a 5-year comparison can point to different winners.

Compare Two Mortgages 2026

Compare two mortgage deals over the same window - monthly payments plus the arrangement fee - to see which is cheaper overall and by how much. A lower rate with a big fee can lose to a fee-free higher rate over a short fix. See also: mortgage repayment calculator.

Cite or embed - free under CC BY 4.0

Frequently asked questions

How do I compare two mortgage deals fairly?: Compare the total cost over the same window - usually the fixed-rate period (e.g. 2 or 5 years) - not just the headline rate. Add up the monthly payments over that window plus any arrangement or product fee. A lower rate with a big fee can end up dearer than a slightly higher fee-free rate over a short fix.
Should I include the arrangement fee?: Yes. A product/arrangement fee (often £999-£1,499) materially changes which deal is cheaper, especially over a short fixed period where the interest difference is small. This calculator adds each deal's fee to its payments over the horizon.
What horizon should I use?: Use the length of the fixed-rate deal you are comparing - most people remortgage at the end of the fix, so the cost that matters is what you pay during it. A 2-year comparison and a 5-year comparison can point to different winners.

Other UK tax calculators that pair with the Compare mortgages.

Frequently asked questions

Related calculators