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What do our APRC rates mean?

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

Unless you’re a loan expert, the world of loan rates and secured loan 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 loan rates and APRCs, you will be in a far better position to compare loan options to spot the best deal available to you, which is likely to save you money in the long run.

APRC explained

The Annual Percentage Rate of Charge (APRC) is the total cost of credit to the consumer, expressed as an annual percentage. It’s used by lenders as an effective measure to inform consumers what the average cost of credit is on an annual basis and to allow consumers to compare quotes from different lenders, as all mortgage and 2nd charge mortgage (secured homeowner loan) providers calculate the APRC in the same way.

In addition to the standard interest rate that a lender charges on your loan, this figure also includes any associated fees that you may be due to pay throughout your loan term. This allows the borrower to see the whole cost of their borrowing up front.

What is a representative APRC?

It’s important to bear in mind that the APRC percentage you see advertised is often an estimation for the average customer. When a consumer applies for a homeowner loan, they will be subject to a routine evaluation of individual circumstances. This will then determine the level of APRC they are to be charged on their loan repayments, which may differ from the advertised rate.

How are secured loan interest rates calculated?

Homeowner loan rates are calculated using a combination of factors that are specific to the individual, such as: loan amount, loan term, house value, credit check. These factors will be assessed during the initial application stage to assess the loan available and the total cost of borrowing.

Many high-street lenders base their decision to grant a loan application solely on credit scores. At Evolution Money, we believe it’s important to consider a person’s entire financial situation before making a decision on an application.

Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Alternatively, if you are struggling to keep up with repayments, or you wish to discuss with a member of our team you can contact us on 0161 814 9158.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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