What is APRC, and why the headline rate isn't the whole story

When you compare mortgages you'll see two rates: the initial rate (the eye-catching one) and the APRC. Knowing the difference stops you being fooled by a low headline that costs more overall.

What APRC means

APRC stands for Annual Percentage Rate of Charge. It's a standardised figure lenders must show, representing the total cost of the mortgage over its full term as a yearly rate. Crucially, it rolls in the fees and the rate you revert to after the initial deal ends — not just the introductory rate.

Why it matters

Two deals can advertise the same initial rate but have very different APRCs, because one has higher fees or a higher reversion rate. The APRC exists to make deals comparable on a single number.

• A very low initial rate with a big arrangement fee can have a surprisingly high APRC.
• A fee-free deal with a slightly higher rate can work out cheaper overall.

How to use it (carefully)

APRC is useful for a rough, standardised comparison, but it assumes you keep the mortgage for its entire term and never switch — which almost nobody does. Most people remortgage when their initial deal ends, so the reversion rate baked into the APRC may never apply to them.

For a more realistic view, look at the total cost over the initial deal period — the monthly payments during the fix plus the upfront fees. That's exactly what our comparison tool calculates, so you can rank deals by what you'd actually pay before remortgaging again.

This is general information, not mortgage advice. Always confirm figures with the lender.