We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.

We want to keep you informed

What do our APRC rates mean?

Secured Loans > Our Loans > Homeowner Loans > Understanding loan rates and APRCs

What do our APRC rates mean?

Secured loans and APRCs can be confusing at the best of times. With various loans on offer at various rates, it’s not always immediately obvious which type of loan suits your particular needs and offers the best value for money.

By understanding APRCs, you will be more informed to compare secured loan options to identify the best deal available and find a suitable loan for you.

What is APRC?

APRC stands for Annual Percentage Rate of Charge.

It is shown as a percentage and is the annual cost of a secured loan or mortgage. It includes all charges (such as fees and other costs), calculated as if you kept your secured loan or mortgage for the full term without changing it and allows you to see costs upfront.

It is used to compare mortgages and homeowner loans – the types of loan that are secured against your house.

As some mortgages can offer a lower rate of interest for the first few years, the way the APRC is calculated reflects this, whereas APR uses just one rate for one year.

APRC is designed to help show you the impact that the different rates and any charges could have over the lifetime of the mortgage or loan, which will help you to compare alternative options.

What is a representative APRC?

Representative or typical APRC refers to the rate at least 51% of people who are accepted for that product will pay or lower. Meaning up to 49% of people who take out that product may pay a higher APRC than that advertised.

For secured loans this Representative APRC may well depend on the amount borrowed and term. Remember to check the Representative APRC when comparing products.

When a lender accepts you for a mortgage or secured loan make sure that you always double-check the actual APRC that you are being charged, as this could be different from the representative APRC. The rate of interest on some forms of borrowing is decided on with reference to your financial status and credit history.

How is APRC calculated?

It takes into account the initial rate, all fees and charges and future rates, it then calculates a percentage which tells you how much the mortgage would cost you each year if you were to stay with the same product until it is repaid.

Homeowner loan rates are calculated using a combination of factors that are specific to the individual, which includes loan amount, loan term, house value and their credit history.

These factors will be assessed during the initial application stage to check the affordability and the total cost of the loan.

At Evolution Money we believe it’s important to consider a person’s entire financial situation before making a decision on a loan.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.
© 2024 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice | Sitemap
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution