What you'd pay each month
What if the market's wrong?
How this works
What are you actually adding up?
Every monthly payment for five years, any fees, and what you'd still owe at the end. Money you pay later is worth a bit less than money you pay now, so we shrink later payments accordingly. The route with the lower total costs less. The headline rate on its own tells you almost nothing.
Where do the future rates come from?
A 2-year deal means you'll need another deal in two years. We don't guess what that will cost. We use the price the money markets are quoting today for borrowing in two years' time, plus the usual lender markup. That's the market's own view, not ours, and it can be wrong. The slider shows how wrong it would have to be to change the answer.
What's the "lock early" thing?
Most lenders let you arrange your next deal up to six months before your current one ends, and switch to a cheaper one if it appears before you start. It's free, and on Bank of England data since 2009 it's been worth about a quarter of a percent on the rate. We count 0.20% of that on future deals, never on one you already hold.
Is this advice?
No. It's arithmetic on the numbers you typed in and today's market prices. It doesn't know your circumstances. A regulated mortgage adviser does.