Mortgage Comparison Calculator 2025

Neither alone tells the full story. You should compare the total cost over your intended mortgage period. A slightly higher rate with no fees might be cheaper than a lower rate with high arrangement fees, especially for shorter fixed periods. Use the Annual Percentage Rate (APR) as a guide, but calculate the total cost including all fees for your specific situation.

This depends on your risk tolerance and market conditions. Fixed rates offer payment certainty but may be higher initially. Variable rates can be lower but carry interest rate risk. Consider your financial stability, how long you plan to stay in the property, and current economic conditions. Many borrowers prefer the security of fixed rates, especially when rates are historically low.

You should compare deals when your current fixed rate is ending (typically 3-6 months before), when market rates change significantly, or when your circumstances change. For most borrowers, this means reviewing options every 2-5 years. Stay informed about market trends but avoid constantly switching unless there are substantial savings to be made.

Include all upfront costs: arrangement/product fees, booking fees, valuation fees, legal fees, and broker fees if applicable. Also consider ongoing costs like early repayment charges if you might switch early. Some lenders offer fee-free deals or include fees in the loan. Don't forget to factor in the cost of mortgage insurance if required.

A good mortgage broker can save you time and potentially money by accessing exclusive deals and comparing options across multiple lenders. They're particularly valuable if you have complex circumstances or limited time. However, ensure they're whole-of-market brokers and understand their fee structure. You can still research and compare deals yourself to verify their recommendations.

APR (Annual Percentage Rate) is the true cost of borrowing that includes both the interest rate and all mandatory fees spread over the loan term. It's crucial for accurate comparisons because a mortgage with a 4.5% interest rate and £2,000 in fees might actually cost more than one at 4.7% with no fees. The APR reveals this by showing the effective annual cost.

For example, on a £300,000 mortgage over 25 years: Lender A offers 4.5% with £1,999 fees (APR 4.8%), while Lender B offers 4.7% with £0 fees (APR 4.7%). Despite the higher interest rate, Lender B is actually cheaper overall. Always compare APRs when evaluating mortgages with the same fixed period length.

However, APR has limitations: it assumes you'll keep the mortgage for the full term (most people remortgage every 2-5 years), and it's only accurate when comparing like-for-like terms. For the most accurate comparison, use our calculator above to see the actual total cost over your intended fixed period.

Always compare across multiple lenders - rates can vary by 0.5-1.5% between lenders for similar products, which translates to £100-£300/month on a £300,000 mortgage. In 2025, the UK mortgage market has over 90 active lenders offering 5,000+ products, so limiting yourself to one lender could cost you thousands.

However, there's one exception: if you're remortgaging and staying with your current lender (called a "product transfer"), this can be faster (2-3 weeks vs 6-8 weeks) and cheaper (no valuation or legal fees, saving £800-£1,500). But even then, compare their product transfer rate against what other lenders offer - if you can save £200+/month, the extra time and fees are worth it.

Use our calculator to compare at least 3 options: your current lender's product transfer, and 2-3 competitive deals from other lenders. Include all fees in your comparison. Many borrowers find that switching lenders saves £2,000-£5,000 over a 2-5 year fixed period, even after accounting for switching costs.

Comparing different fixed periods (e.g., 2-year vs 5-year) requires considering both the initial period and what happens afterward. Calculate the total cost for each option over the same timeframe, making assumptions about future rates.

Example scenario: Option A is a 2-year fix at 4.8% with £999 fees. Option B is a 5-year fix at 5.2% with £1,499 fees. To compare over 5 years: For Option A, calculate 2 years at 4.8%, then assume you remortgage to a new 3-year deal (estimate 5.5% + £999 fees based on current market). For Option B, it's straightforward - 5 years at 5.2%.

Generally, shorter fixes are better when: (1) You expect rates to fall, (2) You might move house within 2-3 years, (3) You want flexibility. Longer fixes are better when: (1) You want payment certainty, (2) You expect rates to rise, (3) You're staying in the property long-term. In 2025's uncertain rate environment, many borrowers prefer 2-3 year fixes for flexibility, accepting slightly higher rates for the option to remortgage sooner if rates drop.