How Do I Compare Mortgage Deals?

To compare mortgages effectively, calculate the total cost over your expected term - not just the interest rate. Add up: monthly payments for the deal period, plus any product fees (£500-£2,000 typically), valuation fees, and subtract any cashback. A mortgage with a lower rate but £1,500 fee may cost more than a slightly higher rate with no fee, especially on smaller loans. A broker can search thousands of deals and calculate which is cheapest for your situation.

Learn more about best mortgage rates in our detailed guide.

Learn more about fixed rate mortgages in our detailed guide.

Mortgage affordability

Learn more about mortgage affordability in our detailed guide.

Learn more about remortgage guide in our detailed guide.

How do I compare mortgages effectively?

Don't just compare interest rates. Calculate the total cost over your expected term including: the interest rate, product fees (often £500-£2,000), valuation fees, and any cashback. A lower rate with high fees can cost more than a slightly higher rate with no fees, especially on smaller mortgages.

What is APRC and should I use it to compare?

APRC (Annual Percentage Rate of Charge) is the total cost including fees spread over the full mortgage term. It's useful for long-term comparison but can be misleading if you plan to remortgage before the end. For most borrowers comparing 2-5 year deals, total cost over your intended term is more relevant.

Should I use a comparison website for mortgages?

Comparison websites show a fraction of the market - typically 20-30 lenders. They miss broker-exclusive deals and specialist lenders. They're useful for initial research but a broker searches thousands more products and can advise on which lenders will accept your application.

Is a fee-free mortgage better?

Not always. Fee-free mortgages often have higher rates. Calculate the total cost: (monthly payment x term months) + fees. On larger mortgages (£300k+), paying a £1,000 fee for a 0.2% lower rate often saves money. On smaller mortgages, fee-free may win.

How many mortgage lenders should I compare?

You don't need to approach lenders directly - each application leaves a credit footprint. Instead, use a whole-of-market broker who searches all lenders with one soft credit check. They'll compare 50+ lenders and recommend the best options for your profile.

What's the difference between mortgage rate and APR?

The mortgage rate is the interest you pay on the loan. APR includes fees spread annually. APRC includes fees over the full term. For comparing deals, focus on total cost over your expected ownership period - usually 2-5 years before remortgaging.

Quick Answer

How Should I Compare Mortgages?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Calculate total cost over your expected term (payments + fees - cashback), not just the interest rate. Use a broker to search the whole market.

Comparing mortgages on rate alone is a common mistake. Two mortgages with the same rate can have vastly different total costs due to fees. To compare properly, calculate the total you'll pay over your intended term: multiply the monthly payment by the number of months in your deal, add any product fees, valuation fees, and legal costs, then subtract any cashback. This gives you the true cost of each deal. On a £200,000 mortgage, a 0.1% rate difference is £200/year - so a £1,000 fee needs 5 years to 'pay back' through the lower rate. Most people remortgage after 2-5 years, making fees highly relevant.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Key Points

1Calculate total cost, not just rate
2Include all fees in comparison
3Consider your expected term (2, 5, 10 years)
4Factor in cashback offers
5Comparison sites show limited market
6Brokers access exclusive deals

Eligibility Criteria

Know your deposit/equity percentage
Understand your credit profile
Have income documentation ready
Know your property type and value
Decide on fixed vs variable preference

Typical Timeframe

Comparing mortgages yourself takes hours. A broker can search thousands of deals in minutes using specialist software, then present you with the best options for your circumstances.

Next Steps

1Gather your financial information
2Check your credit report
3Calculate your loan-to-value ratio
4Speak to a whole-of-market broker
5Compare total costs not just rates

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How Should I Compare Mortgages?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

What to Compare

Total Cost Example

Deal A: 4.0% rate, £999 fee

Deal B: 4.2% rate, no fee

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