How to compare mortgage rates in the UK

The lowest headline rate isn’t always the cheapest mortgage. To compare properly you need to look at the rate, the product fee, the length of the fixed period, the term, and any ERC.

The five numbers that matter

• Headline interest rate — usually expressed as fixed for 2 / 3 / 5 / 10 years.
• Product fee — most fee-paying deals charge £499–£1,499 added or paid upfront.
• Loan-to-value band — rates step up roughly every 5–10% of LTV.
• Fixed period — short fixes = flexibility; long fixes = certainty.
• Early Repayment Charge — usually a tapering % during the fixed period.

How to do the maths in one minute

Multiply the monthly payment by the number of months in the fixed period. Add the product fee. That’s your total cost for the fixed term — compare deals using that, not the headline rate.

When a higher rate is cheaper

On smaller loans (under ~£130k), a fee-free product at a slightly higher rate often beats a £999-fee product at a lower rate. The cross-over point is roughly £130k–£160k depending on the rate gap.

Don’t forget the after-fix world

Most UK borrowers remortgage at the end of their fixed period. The lender’s SVR is rarely competitive — assume you’ll switch and plan ahead.

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