Mortgage Comparison Calculator
Compare two mortgage deals side by side — different rates, terms, or loan amounts. See exactly which deal costs less each month and over the full term.
✓ Supports GBP, USD, EUR, NOK, AUD and CADHow much you save with the better deal
What to compare: rate vs term
Most people focus on the interest rate — but the mortgage term matters just as much. A lower rate over a longer term can actually cost more total interest than a slightly higher rate over a shorter term. This calculator makes that trade-off explicit.
Loan: £280,000. Two offers on the table:
- Deal A: 4.8% fixed for 2 years, then reverts to SVR (~7%)
- Deal B: 5.1% fixed for 5 years, rate certainty for longer
Deal A is cheaper now (£1,597/mo vs £1,655/mo), but if SVR rates stay elevated after year 2, Deal B's certainty may be worth the £58/month premium. Use the calculator to model your specific numbers.
2-year fix vs 5-year fix — which is better?
This is the most common mortgage comparison question in the UK right now. The answer depends on where you think interest rates are heading — something nobody knows for certain.
The case for a 2-year fix: you pay a lower rate now and get flexibility to remortgage sooner if rates fall. The risk: if rates stay high or rise further, your remortgage in 2 years could be painful.
The case for a 5-year fix: you lock in certainty for longer, protecting against rate rises. The cost: if rates fall significantly in years 3–5, you're stuck paying above market.
Most UK mortgage brokers currently (2025) lean toward 5-year fixes for buyers who plan to stay in the property. The difference in monthly payment is usually small, and the certainty has real value for budgeting.
How to use this calculator effectively
- Comparing rates — keep the loan amount and term the same, change only the rate. The monthly saving and total interest difference tells you the real value of securing a better rate.
- Comparing terms — keep the rate and amount the same, change only the term. A 5-year shorter term usually costs ~15–25% more per month but saves 30–40% in total interest.
- Comparing loan amounts — useful if you're deciding how much deposit to put down. A larger deposit (lower loan) saves money in two ways: lower monthly payments and often a better rate tier from the lender.
Remortgaging: is it worth the cost?
When remortgaging, there are switching costs to factor in: arrangement fees (typically £500–£1,500 in the UK, similar in other markets), valuation fees, and legal costs. The total is often £1,000–£3,000.
A rough rule: if the monthly saving multiplied by the remaining fixed term exceeds the switching costs, the remortgage is worth it. For example, a saving of £120/month over a 5-year fix = £7,200 saved — easily justifying £1,500 in fees.
Rate differences across markets
Mortgage rates vary significantly by country due to different central bank policies, property market structures, and lender competition. As of 2025:
- UK: 5-year fixes typically 4.0–5.5% for good credit, standard 25-year term
- USA: 30-year fixed around 6.0–7.0%, driven by the Federal Reserve rate
- Eurozone: 3.5–5.0% variable, with shorter fixed periods common
- Norway: Variable rates around 5–6%, linked to Norges Bank base rate
- Australia: Variable around 6–7%, with offset accounts common
- Canada: 5-year closed fixed around 4.5–6.0%, maximum 25-year amortisation for insured mortgages
Sources & Further Reading
- Bank of England — Mortgage rate statistics (bankofengland.co.uk)
- Freddie Mac — US primary mortgage market survey (freddiemac.com)
- European Central Bank — Bank lending survey (ecb.europa.eu)
- Norges Bank — Key policy rate and mortgage statistics (norges-bank.no)
- Reserve Bank of Australia — Housing interest rates (rba.gov.au)
- Bank of Canada — Mortgage lending rates (bankofcanada.ca)