How should I compare a 6.60% two-year fix once fees are included?

[jade_details]

I’ve been quoted 6.60% fixed for two years on a London property purchase of around £175,500. The advertised rate was lower, but the arrangement fee and the applicable loan-to-value tier changed the picture.

I’m deciding whether this is genuinely competitive or merely looks expensive because I’m comparing the wrong figures. Would you prioritise APR, interest charged during the fixed period, or total cash paid including fees? I’m also looking at early-repayment terms and portability rather than assuming I will simply refinance in two years.

 

[jade_details]

One clarification: I want to compare each offer over the same two-year period and borrowing amount. My current plan is to list the fee, 24 monthly payments and balance remaining at the end of the fix. Is that enough, or am I missing a better way to account for the different loan-to-value tiers?

 

[drawsAndSlate]

That comparison is more useful than looking at the headline rate alone. Add any fee paid upfront to the 24 payments, then compare the remaining balances as well—otherwise a deal with lower monthly payments can appear cheaper despite leaving you owing more.

The mortgage term and exact deposit matter here. Are both quotes based on the same term and loan amount, and does a slightly larger deposit move you into another LTV tier?

 

[romy_listings]

I wouldn’t dismiss APR completely, but it can be misleading for a two-year decision because it relies on assumptions beyond the fixed period. Your two-year cash-cost calculation is the stronger comparison if you expect to refinance.

The caveat is that refinancing may not be available on favourable terms then. Also read the portability conditions carefully: being described as portable does not necessarily mean a future move will proceed automatically or on unchanged terms.

 

[DirectCairn]

I’d make a simple table for each offer: upfront fee, monthly payment, total paid over 24 months, balance after month 24, early-repayment restrictions and portability terms. Keep affordability separate from overall cost—a cheaper offer is no help if the payment is uncomfortable.

Then test the payment at a higher rate after the fix. That won’t predict the reset, but it shows whether the choice depends too heavily on getting an easy refinance in two years.