Pricing
Annual Percentage Rate of Charge (APRC)
APRC combines the interest rate, all compulsory fees, and any rate changes (such as revert rates) into a single figure expressed as an annual percentage. It's the most reliable number for comparing secured loan products.
Where the headline interest rate only tells you what's charged on the outstanding balance, the APRC includes everything else — arrangement fees, valuation fees, legal fees, and the impact of any reversion rate after the initial fixed period ends.
Lenders are required by FCA rules to display the APRC alongside any advertised rate. This makes it the most reliable apples-to-apples comparison tool when choosing between products.
A 7.5% headline rate with a £1,995 fee can have a higher APRC than a 7.9% rate with a £495 fee — meaning the higher headline rate is actually the cheaper deal overall. Always compare APRC, not the initial rate alone.
Worked example
On a £30,000 loan over 10 years: 7.5% with £1,995 fee gives APRC ~8.6%. 7.9% with £495 fee gives APRC ~8.1%. The 7.9% product is cheaper despite the higher headline rate.