Stage 3 of 7
Choosing a mortgage
Compare the cost and flexibility of mortgage deals, including fixed periods, fees, monthly payment pressure, and follow-on rates.
What this stage means
This stage is about choosing between mortgage products once the property budget and upfront costs are broadly understood.
A mortgage with the lowest headline rate is not always the lowest-cost or best-fitting option once fees, term, fix length, flexibility, and future plans are included.
Key numbers to understand
- Initial rate, fixed or tracker period, and the standard variable or follow-on rate after the deal ends.
- Product fees, valuation fees, broker fees, cashback, and whether fees are paid upfront or added to the loan.
- Monthly repayment during the deal, total paid during the comparison period, and balance remaining.
- Overpayment allowance, early repayment charge period, and any portability rules.
Common mistakes
- Choosing only by rate without comparing fees and remaining balance.
- Adding fees to the loan without noticing the extra interest over time.
- Ignoring whether the deal length matches likely life events, moving plans, or remortgage timing.
How to interpret the result
Compare both monthly affordability and total cost. A deal can be cheaper overall but still uncomfortable month to month.
If results are close, flexibility, ERC terms, fee payment method, and remortgage timing may matter more than a small cost difference.
Next step in the journey
After completion, switch from choosing the product to managing the mortgage you now have.
Continue to Ownership