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APRC explained (UK): why it’s on your mortgage illustration

APRC is a standardised percentage showing the overall cost of a mortgage over its full term. Useful for comparing deals, but based on assumptions.

Published: 07/04/2026 • Last verified: 07/04/2026

The short answer

APRC (Annual Percentage Rate of Charge) is a standardised percentage intended to show the overall cost of a mortgage over its full term, using a set method and assumptions (including relevant fees and what rate applies after any introductory period).

It’s shown on mortgage illustrations so you can compare products on a consistent basis. But it’s still a model: if you know you won’t keep the mortgage for the full term, APRC may be less relevant than a comparison over your own time horizon.

A tiny example

Example (illustrative):

  • You take a £200,000 mortgage over 25 years.
  • Deal A has a lower initial rate but a higher arrangement fee.
  • Deal B has a slightly higher initial rate but a lower (or no) fee.

APRC is designed to reflect the overall cost of credit over time, not just the headline initial rate. So Deal A can sometimes have a higher APRC than Deal B even when its initial rate looks cheaper — because fees and what happens after the intro period can pull the “total-cost” figure up.

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