I was looking at MoneySupermarket and comparing mortgage rates. A mortgage from Cheltenham and Gloucester came up as having the best rate of 4.99%, but further investigation showed that it came with a 2.5% initial fee

I therefore wrote a very simple calculator to work out how much the total cost of an interest only mortgage is for a given set of criteria taking the initial fee into account

In the example shown above, for a 2 year £100000 mortgage with an interest rate of 5.49% and fee of £899, the total cost is £11273.