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Mortgage products are often advertised with a headline rate and a separate arrangement fee. On the same loan amount and term, a slightly higher rate with no fee can cost less overall than a rock-bottom rate with a £999 product fee — especially if you remortgage again before the fee pays back through a lower monthly payment.
Take a £297,500 loan (15% deposit on £350,000) over 25 years. Offer A might be 4.50% with no fee; Offer B 4.20% with a £999 arrangement fee. The lower rate wins on monthly payment, but the upfront fee shifts total cost — particularly in the first few years.
Putting both products on the same scenario shows monthly payment, total interest, and how long it takes for a lower rate to recover an upfront fee.
Change the inputs on the calculator — price, nation, or buyer type — and see how the numbers respond.
Compare two offers on your scenarioAssumptions and sourcesThe true cost of owning a home (beyond the mortgage)
The monthly mortgage repayment is usually the biggest housing cost, but it is not the only one. Council tax, buildings insurance, maintenance, and sometimes service charges or ground rent all come out of your budget too. Adding them up gives a clearer picture of what living in the property actually costs.
Read guideRent vs buy in the UK: a scenario-based comparison
Renting and buying differ in monthly cost, but the gap widens once you count upfront cash — deposit, stamp duty, and buying fees. Those costs hit harder if you move often, because you pay them again with each purchase. Over a full mortgage term, equity, house prices, and spare cash on the rent path all shape the longer picture.
Read guideHow much stamp duty will I pay in 2025/26?
Stamp duty is transaction tax on residential property. You pay nothing on the slice below the first threshold, then progressively higher rates on amounts above. The total is the sum of tax on each slice — not one flat percentage of the whole price. That slice-by-slice structure catches many first-time buyers by surprise.
Read guidePalta Money is for education and planning only. It is not regulated financial advice. Tax rules and rates change; confirm figures with official sources or a qualified adviser before you commit.