Tuesday, 22 February 2011

What are APRs on Mortgages

In order to make it easier for people to compare differing rates of interest, the Government introduced the concept of the APR which is an abbreviation for the phrase "Annual Percentage Rate of Charge".

The APR represents the total cost of credit and takes into account all the added costs such as valuation fees, lender's conveyancing charges etc which are not included in the nominal rate of interest. Until April 2000 it was possible for different organisations to calculate APRs in various ways. The government has now standardised the practice of calculation so that the APR reflects the cost of borrowing over the total term of the loan and inclusive of any concessionary rates that may be applicable in the early stages.

So, why use a mortgage broker?

Because we will help you save your time, your effort and your money!

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