How to compare remortgage deals

Comparing remortgage deals is not about finding the lowest rate. It’s about finding the lowest total cost for the time you plan to keep the deal.

Estimate payments Fees vs savings (break-even) Product fee vs rate

Quick answer

Compare deals by the period you expect to keep them: estimate monthly payment, multiply by months, then add fees and subtract cashback. Include legal/valuation costs if they are not included. If switching early, add ERC and run a break-even check.

The simple comparison method

Step-by-step

Pick your comparison horizon (e.g. 24 months, 60 months, or your initial deal period)
Estimate the monthly payment for each deal
Total payments = monthly payment × months
Add product fees, valuation fees, legal fees (if not included)
Subtract cashback incentives (if any)
If switching early, add ERC and compare again (use break-even)

Tools to help: payment calculator, break-even, LTV.

Costs and what affects them

1) Product fee

A product fee can be paid upfront or added to the loan. If added, you pay interest on it. Fee-heavy deals often make sense when you keep the deal longer or borrow more.

2) Legal and valuation costs

Many deals include free valuation and free legals. If not, add them to your total cost. See legal fees and valuation.

3) Cashback

Cashback reduces your effective cost, but don’t let it distract from a worse rate or fee structure. Treat cashback as a subtraction in your total-cost calculation.

Pitfalls to avoid

Comparing across different time horizons: always compare over the same months.
Ignoring ERC when switching early.
Forgetting add-ons: broker fees, higher lending charge, leasehold extras.
Focusing on the first month only: remortgage decisions are multi-year decisions.

Checklist: compare deals like a pro

Know your LTV band and eligibility
Estimate payments using the same term for each deal
Include product fee and decide upfront vs added
Include legal and valuation costs if not included
Subtract cashback
If switching early, include ERC and use break-even

FAQs

Not always. Fees, cashback, free legals, and how long you keep the deal can make a higher-rate option cheaper overall.

Estimate monthly payments for each, then add fees (and subtract cashback) over the time you expect to keep the deal. If you are switching early, include ERC and use break-even.

Not necessarily. Cashback gives flexibility, but the deal might have a higher rate or fee. Compare total cost overall.

Compare over the period you realistically expect to keep the deal (often the initial fixed/tracker period). If you expect to switch again, use that horizon.