The true cost of a mortgage goes beyond the headline rate

The advertised interest rate is usually the first number people compare when looking at a mortgage. It matters, but it rarely tells the whole story of what a home loan will cost over time.

Fees can change the comparison

Arrangement, valuation, legal and broker fees vary between lenders and products. A loan with a lower rate but higher upfront fees may cost more overall, particularly if the loan is repaid or switched early.

Repayment structure matters

How a loan is repaid shapes the total interest paid. A longer term can lower monthly payments while increasing the total cost. Features such as overpayment allowances, payment holidays or offset arrangements can also affect the practical cost.

Time is part of the price

Introductory rates often last for a set period before moving to a different rate. Understanding what happens when that period ends, and whether early repayment charges apply, helps you compare products on a like-for-like basis.

Mortgages