We'd like to remind Forumites to please avoid political debate on the Forum... Read More » This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

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: 12,695 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

★ ★ ★ Meet your Ambassadors

Confirm your email address to Create Threads and Reply

Categories

All Categories
349.8K Banking & Borrowing
252.6K Reduce Debt & Boost Income
453K Spending & Discounts
242.8K Work, Benefits & Business
619.5K Mortgages, Homes & Bills
176.4K Life & Family
255.7K Travel & Transport
1.5M Hobbies & Leisure
16.1K Discuss & Feedback
15.1K Coronavirus Support Boards

MSE News

Martin Lewis: How to call your bank with just three digits – as 'anti-scam' phone number called over a million times
One million calls have been made to the '159' anti-scam phone number since its launch in 2021, new figures reveal today (Wednesday 30 April). MoneySavingExpert.com founder Martin Lewis – one of the well-known faces most used in scams – explains how to call your bank by dialling just these three numbers.
Revealed: Holland & Barrett's supposedly cheaper 'Subscribe & Save' often costs more – it's promised a review after our investigation
Holland & Barrett's 'Subscribe & Save' scheme claims to offer regular shoppers "the best value" – but it failed to do so in the majority of cases MoneySavingExpert.com checked over a five month period. The retailer has now promised to review the scheme after our research found it was often more expensive.
Don't get your passport by post – 360,000 paid more than needed last year
If your passport is due for renewal, apply online if you can – it'll save you £12.50. More than 7 million Brits did just that last year – but over 360,000 missed out on savings by using a paper form instead, MoneySavingExpert.com can reveal.
Sainsbury’s Bank customer? NatWest takes over this week – here's what it means for savers and borrowers
Sainsbury's Bank's savings, credit cards and loans will be taken over by NatWest from Thursday 1 May. For most, this means little will change for now as the Sainsbury's Bank brand will remain, though it's expected to be phased out towards the end of this year. However, if you've over £85,000 saved across both banks, it's worth considering moving any excess elsewhere to ensure your cash remains protected.
Chase customer? Check if you can get its newly boosted 4.8% easy-access saver
If you've got a Chase account, check if you can boost your easy-access savings to 4.8% – made up of a 1.8% AER fixed six-month bonus plus its standard 3% variable rate. Chase says over 2 million customers can get the boost, which would top our normal savings tables if it were open to all, though it's beaten by the top easy-access cash ISAs.
NatWest to complete takeover of Sainsbury's Bank this week – here's what it means for savers and borrowers
Sainsbury's Bank's savings, credit cards and loans will be taken over by NatWest from Thursday 1 May. For most, this means little will change for now as the Sainsbury's Bank brand will remain, though it's expected to be phased out towards the end of this year. However, if you've over £85,000 saved across both banks, it's worth considering moving any excess elsewhere to ensure your cash remains protected.
Martin Lewis: Is the £20,000 cash ISA limit about to be killed off? What savers should be doing now
Plans to cut the £20,000 cash ISA limit later this year are being considered by the Government. In his latest video, MoneySavingExpert.com founder Martin Lewis explains what's likely to happen, what the changes would mean for savers and what you should be doing now.
NatWest to complete takeover of Sainsbury's Bank this week – here's what it means for savers and borrowers
Sainsbury's Bank's savings, credit cards and loans will be taken over by NatWest from 1 May. For most, this means little change for now as the Sainsbury’s brand will remain, though it's expected to be phased out towards the end of this year. However, if you've over £85,000 saved across both banks, you'll need to move any excess elsewhere to ensure your cash remains protected.
NatWest to complete takeover of Sainsbury's Bank this week – here's what it means for savers and borrowers
From Thursday 1 May, Sainsbury's Bank credit cards, loans and savings accounts will be run by NatWest as part of a deal between the two banks. You'll be moved to NatWest in the future, likely towards the end of this year, but for now the Sainsbury's Bank brand will remain and you can continue to use its products and services as before.