Property Tools

MORTGAGECOST COMPARISON

Designed by mortgage advisors · Built for the mortgage industry

Compare mortgage deals on their true cost — including payments over the deal term, product fees, valuation, legal costs, and remaining balance. See whether adding a fee to the mortgage actually costs you more.

Deal A

Deal B

How the Comparison Works

Monthly Repayment Formula

M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

P = mortgage balance
r = monthly interest rate (annual ÷ 12 ÷ 100)
n = full term in months

The standard UK capital repayment formula. If the product fee is added to the mortgage, P increases accordingly, raising both the monthly payment and total interest.

Remaining Balance Formula

B(k) = P(1+r)^k − M × [(1+r)^k − 1] ÷ r

k = deal term in months
B(k) = outstanding balance at end of deal

The remaining balance matters at remortgage — a lower balance improves your loan-to-value ratio and may qualify you for better rates on your next deal.

Total Cost of Deal

Total Cost = (M × k) + Upfront Fees

Upfront Fees = product fee (if not on balance)
+ valuation + legal + other fees

This is the true cash outflow during the deal period. It is the primary figure mortgage advisors use to determine which deal is genuinely cheaper for a client.

Fee to Mortgage vs. Pay Upfront

Added to balance → P increases
→ Higher M, more interest paid

Paid upfront → P unchanged
→ Lower M, fee added directly to total cost

Adding a fee to the mortgage typically costs more over the term due to compounding interest, but avoids an upfront cash requirement. This calculator shows both scenarios clearly.

MD

Mandeep Singh · 25+ Years UK Financial Services

Important Information

This calculator is for illustrative purposes only and does not constitute mortgage advice, a personal recommendation, or a mortgage offer.

Results are based on the figures you enter and assume a standard capital repayment structure. Actual rates, fees, terms, and eligibility will vary by lender and individual circumstances.

You should seek independent advice from a qualified mortgage adviser or broker before making any financial commitment.

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