Annual percentage rate
It is a legal requirement that the Annual Percentage Rate is shown clearly and prominently when a mortgage is advertised. An APR is the standard way of stating the total cost of the loan, which is used to help you compare mortgages. The annual percentage rate includes features such as the interest rate, charges such as admin, booking and valuation fees, also when and how often the interest and charges must be paid. Basically, all you need to know is that one APR can be directly compared with another. The lower the APR, the cheaper the mortgage will be over an average of 25 years.