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The lower APRC the better?

adriann123

adriann123 Posts: 1 Newbie

29 June 2020 at 3:20PM in Mortgages & endowments

First time buyer Still learning.

See attached screenshot (standard HSBC products), I was under impression to make a decision based on APRC. Lower APRC means better borrowing rate and lower fees.My question is how come monthly payment is lower on 2.7% APRC than 1.8%? Am I missing something here?

LTV 42%, Term 8 Years, I'm thinking about 5 years fixed.

Image: https://us-noi.v-cdn.net/6031891/uploads/editor/pa/xkiz9y4qrnkv.png

Thanks in advance,

Adrian

0

Comments

amnblog Posts: 12,697 Forumite

29 June 2020 at 3:24PM

APRC is calculated like this

Don't imagine for a moment is has any relevance to you and your mortgage.
Worry about the rate, the mortgage term, and the booking fee.

I am a Mortgage Broker

You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
1
jamielutz1987 Posts: 304 Forumite

29 June 2020 at 3:24PM edited 29 June 2020 at 3:25PM

@adriann123 In the words of Martin Lewis... "Ignore mortgage APR rates, they’re a meaningless load of b…aloney!"
https://blog.moneysavingexpert.com/2014/02/ignore-mortgage-apr-rates-theyre-a-meaningless-load-of-baloney/

1

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