Annual Percentage Rate APR UK Mortgage Definition

UK Mortgage definition

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Annual Percentage Rate ( APR )

This is the rate of charge on a loan calculated to a set formula. It includes not just the rate of interest, but also associated costs. The Annual Percentage Rate was introduced to provide a meaningful comparison of rates charged by different lenders. However in recent years more sophisticated repayment systems have made APR much less meaningful than in the past.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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