APRC stands for Annual Percentage Rate of Charge.
It’s a number that shows the total cost of your mortgage over the whole term (like 25 or 30 years), expressed as a yearly percentage.
Why can it be irrelevant?
1. You’re Unlikely to Keep the Mortgage for the Full Term
APRC assumes you’ll keep the mortgage for the entire term — usually 25 or 30 years.
But most people:
Remortgage after 2–5 years
Move house
Switch deals to get better rates
If you’re not keeping the same mortgage for decades, the APRC becomes irrelevant — it includes future interest rates and fees you may never actually pay.
2. It Includes the Lender’s ‘Standard Variable Rate’ (SVR)
APRC calculations often use the SVR (what the mortgage reverts to after the initial deal ends).
SVRs are high and unpredictable.
Most people remortgage before hitting the SVR, so that part of the APRC is misleading.
You might see a scary APRC of 5.5%, but if you plan to switch deals after 2 or 5 years, that part doesn’t affect you.
3. Fees Can Skew It
Some mortgages with lower fees and slightly higher rates can have lower APRCs, even if they cost you more in the short term.
If you only care about the first 2–5 years (which most people do), you should compare:
Initial interest rate
Fees
Monthly payments over that short period
…not the long-term APRC.
4. It’s Just a Theoretical Number
APRC is based on assumptions about what will happen over decades — but life, interest rates, and your plans change.
So it’s not a good guide for short-term decisions.
When to Pay Attention to APRC:
If you’re definitely staying put and not remortgaging.
If you’re comparing fixed-for-life or long-term fixed-rate mortgages.
Otherwise? Focus on the deal period, rate, fees, and flexibility.
Emily's Mortgage Services LTD 