APRC stands for Annual Percentage Rate of Charge. It's a standardised measure of the total cost of a mortgage over the life of the loan, including the interest rate, any fees and charges, and other costs associated with the loan. The APRC takes into account the amount borrowed, the interest rate, and the length of the loan, and is expressed as a percentage.
The APRC is designed to help consumers compare the total cost of different mortgages and make an informed decision about which mortgage is right for them. Unlike the interest rate, which only represents the cost of borrowing the money, the APRC provides a comprehensive picture of the total cost of a mortgage over the entire term of the loan.
It's important to note that the APRC is a theoretical calculation that assumes that the loan will be held for its entire term and that all payments will be made on time. In reality, many borrowers choose to refinance their mortgages or sell their homes before the end of the loan term, which can impact the actual cost of the loan.
When comparing mortgages, it's important to consider both the interest rate and the APRC to get a complete picture of the cost of the loan, we will help you understand this calculation. While a low interest rate may seem attractive, it's possible that a mortgage with a slightly higher interest rate but lower fees and charges could end up being a better deal in the long run. At Hell Mortgage we help you understand the total cost of your mortgage to make sure you make an informed decision.
