UK mortgage calculators
Mortgage Fee vs Lower Rate Calculator
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Your estimate will appear here.
What this result means
Mortgage deals combine rates, fees, cash payments and debt left at the same horizon. This tool shows all four and distinguishes fees paid upfront from fees added to the mortgage.
How to use the calculator well
- Use the same original balance, remaining term and comparison horizon for both deals.
- Enter product, legal, valuation, exit and early-repayment costs from written terms.
- Choose whether each product fee is paid upfront or financed; do not treat financed fees as free.
Worked scenario
For a £200,000 loan over 25 years and a two-year horizon, compare 4.5% plus a £1,499 fee with 4.8% fee-free. The lower cash outlay can differ from the lower economic cost once remaining balances are included.
Questions people ask
What does economic cost mean here?
It is cash paid plus debt remaining at the horizon minus the original mortgage balance. It exposes interest and entered fees without treating principal repayment as a cost.
Does this recommend a mortgage?
No. It cannot assess eligibility, suitability, future rates or lender-specific daily-interest and product rules.
Sources and review standard
Calculations are independently implemented illustrations and were reviewed on 4 September 2026. We check factual boundaries against MoneyHelper's mortgage cost guidance, FCA consumer mortgage information and relevant lender documentation. Rates and product terms are never presented as live offers.
Before relying on this estimate
This is an educational illustration, not mortgage, financial, tax or legal advice, a lender decision or an offer. Exact rates, fees, early-repayment charges and product rules can materially change the result.
Check the figures with your lender, broker or qualified adviser. Your home may be repossessed if you do not keep up repayments on your mortgage.
Editorial responsibility
Published by Acerville Sparks Limited. Software assists research, drafting and automated formula testing. Primary sources, assumptions and limitations are shown so readers can inspect the work. No independent mortgage professional or financial adviser review is claimed. Reviewed 4 September 2026.