Compare Two Mortgages
Our compare two mortgages calculator puts two mortgage deals side by side — showing monthly payment, total interest, and true total cost for each, including any product fees. Whether you are weighing a 2-year fix against a 5-year fix, comparing your current deal with a remortgage offer, or deciding between a repayment and interest-only product, this tool makes the comparison precise and instant.
Compare Two Mortgages
Compare the true cost of two mortgage deals side by side including fees.
Why True Cost Matters More Than Monthly Payment
The lowest monthly payment is not always the best deal. A mortgage with a low rate but a £1,999 product fee may cost more overall than one with a slightly higher rate and no fee. Over a 2-year fixed period on £200,000, a rate difference of 0.25% amounts to approximately £1,000 in interest — meaning a £999 fee on the lower-rate product is still worth paying, but a £1,999 fee may not be.
This calculator adds the product fee to the total cost comparison so you can see the genuine saving or additional cost from each deal over the fixed period, not just the headline monthly figure that lenders emphasise in marketing.
2-Year vs 5-Year Fixed: Which Is Better?
This is one of the most common mortgage decisions in the UK. A 2-year fix typically offers a lower initial rate but exposes you to rate risk sooner — you remortgage every 2 years, each time incurring arrangement costs and potentially facing higher rates. A 5-year fix provides certainty for longer but at a premium over the 2-year rate (typically 0.1–0.4% depending on market conditions). If rates fall significantly during a 5-year fix, you are locked in above the market. If rates rise, you are protected.
As a general rule: if the difference in monthly payment between a 2-year and 5-year fix is more than £100 on a typical mortgage, the 5-year fix requires confidence that rates will not fall by more than the premium within the period. Our Ditch Your Fix Calculator assesses whether breaking out of a current fix and remortgaging early makes financial sense after Early Repayment Charges.
Frequently Asked Questions
Always. Many borrowers focus solely on the interest rate, but product fees of £999 to £1,999 are common and can swing the comparison significantly — especially on smaller mortgages where the rate saving is less in absolute terms. This calculator includes fees in the total cost calculation automatically.
Some lenders offer a cashback at completion — typically £250 to £500 — as an incentive. This effectively reduces the true cost of the deal. Add the cashback value to the comparison by reducing the fee on that deal by the cashback amount.
At the end of your fixed period, you revert to the lender’s Standard Variable Rate (SVR), which is typically significantly higher than the fixed rate. Most borrowers remortgage to a new deal before this happens. Start comparing new deals 3–6 months before your fixed period ends — you can lock in a rate without completing until your fix expires.
Offset mortgages effectively reduce the mortgage balance by linking savings to the debt, which can produce significant interest savings if you hold substantial cash savings. Use our Mortgage Offset Calculator to model the offset saving alongside this comparison.
This calculator is optimised for repayment mortgages. The monthly payment and total cost of an interest-only mortgage are not directly comparable with a repayment mortgage without also considering the capital repayment vehicle — but you can enter 0% amortisation to model the interest-only payment in Mortgage B and add the savings vehicle return separately.
Enter the details for two mortgage products: loan amount, interest rate, term, and any arrangement fees for each. Arrangement fees can be paid upfront or added to the mortgage — adding them means you pay interest on them, which the calculator factors in. The comparison shows monthly payment, total interest, and total cost (interest plus fees) for each option. A lower rate with a high arrangement fee is not always cheaper than a higher rate with no fee — total cost is the number that matters. If you are comparing a fixed rate against a tracker, input the current tracker rate; be aware the tracker rate will change with base rate movements, which this calculation cannot predict.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.