Compare Two Mortgages

Use this calculator to compare two different mortgage options side by side. Enter your mortgage details below to see which option offers better value over time.

Mortgage Details

£

years

1 to 40 years

Mortgage type

MORTGAGE 1

%

Fees to take out the mortgage

MORTGAGE 2

%

Fees to take out mortgage

Compare over

How to use

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About This Calculator

The Compare Two Mortgages Calculator helps you compare different mortgage options side by side. It allows you to see which mortgage offers better value over time by comparing monthly payments, total costs, and how your debt decreases over the years.

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How to Use the Calculator

Step 1

Enter the Mortgage Debt

Enter the total amount you're borrowing for your mortgage in pounds (£). This will be the same for both mortgage options you're comparing.

Step 2

Enter the Mortgage Term

Enter the length of your mortgage in years. This is typically between 1 and 40 years and will be the same for both mortgage options.

Step 3

Select the Mortgage Type

Choose between a repayment mortgage (where you pay off both the capital and interest) or an interest-only mortgage (where you only pay the interest and the capital is paid off at the end of the term). Both mortgage options will use the same type.

Step 4

Enter Details for Mortgage 1

Enter the interest rate for the first mortgage option as a percentage (%). If there are any fees associated with this mortgage, enter them as well.

Step 5

Enter Details for Mortgage 2

Enter the interest rate for the second mortgage option as a percentage (%). If there are any fees associated with this mortgage, enter them as well.

Step 6

Select Comparison Period

Choose how many years you want to compare the mortgages over. This can be useful if you're planning to move or remortgage before the end of the full term.

Step 7

Calculate and View Results

Click the "Calculate" button to see the comparison results. The results will show:

  • Monthly Payments: How much you'll pay each month for both mortgages
  • Cost Over Comparison Period: The total cost over your selected comparison period
  • Cost Over Full Term: The total cost over the full mortgage term
  • Cost Comparison Chart: A visual comparison of costs over your selected period
  • Debt Over Time Chart: A chart showing how your mortgage debt decreases over time for both options
  • Remaining Debt Table: A year-by-year breakdown of your remaining mortgage debt for both options

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Understanding the Results

Monthly Payments

This shows the monthly payment amount for each mortgage option. Lower monthly payments might be preferable if you're concerned about affordability, but remember to consider the total cost as well.

Cost Over Comparison Period

This shows the total cost (interest and fees) for each mortgage over your selected comparison period. This is particularly useful if you're planning to move or remortgage before the end of the full term.

Cost Over Full Term

This shows the total cost (interest and fees) for each mortgage over the full term. This gives you the complete picture of how much each mortgage will cost you if you keep it for the entire term.

Cost Comparison Chart

This bar chart visually compares the total cost of each mortgage over your selected comparison period. It helps you quickly see which option will cost you more during this timeframe.

Debt Over Time Chart

This chart shows how your mortgage debt decreases over time for both options. For repayment mortgages, you'll see the debt gradually decrease to zero. For interest-only mortgages, the debt remains constant until the end of the term.

Remaining Debt Table

This table provides a year-by-year breakdown of your remaining mortgage debt for both options. It helps you understand how much of your mortgage you'll have paid off at different points in time.

Making a Decision

Consider Your Timeframe

If you're planning to stay in your home for the full mortgage term, focus on the "Cost Over Full Term" figures. If you're likely to move or remortgage sooner, pay more attention to the "Cost Over Comparison Period" figures.

Balance Monthly Payments vs. Total Cost

A mortgage with lower monthly payments might be more affordable in the short term, but could cost you more in the long run. Consider both factors based on your financial situation.

Factor in Fees

Don't forget to consider the impact of fees. A mortgage with a slightly higher interest rate but lower fees might be cheaper overall, especially if you're planning to remortgage after a few years.

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Calculation Assumptions

In order to create these results, we have made the following assumptions:

  • Monthly Interest: Interest is charged monthly.
  • Fixed Interest Rates: The interest rates stay the same over the entire term.
  • Fees Included in Mortgage: All fees are assumed to be added to the mortgage amount.
  • Interest-Only Payments: If you selected 'Interest only', we assume your standard monthly payment doesn't decrease even if you pay off some of the balance.
  • Rounded Payments: Monthly payments are rounded down to the nearest pound for simplicity.

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