'Ignore mortgage APR rates, they're a meaningless load of b…aloney!' blog discussion

Former_MSE_Helen

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "Ignore mortgage APR rates, they're a meaningless load of b…aloney!" Blog.

Please click 'post reply' to discuss below.

RaspberryFool

Martin,
I can understand your argument but I thought that one of the advantages that the APR had over the 'advertised rate' was that it included all the fees and other charges that one might get charged for arranging the mortgage. I don't believe that simply comparing the advertised rates will work as you infer. A quick look around shows some providers advertising what appear to be very low fixed rates for two years but with a fee of £2000, whilst others show a higher rate but only charge a fee of ~£500. May be another requirement for an MSE tool?

RF

JimmyTheWig

I agree, Raspberry Fool.
I always say that you need a sort of APR equivalent for the length of the deal.

Mobeer

Yet another article that forgets about fees!