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In the UK the APR is supposed to be a figure which includes all costs, it's why payday loans have such high values as any fixed costs are considered part of thi
by IanCal 11y ago
In the UK the APR is supposed to be a figure which includes all costs, it's why payday loans have such high values as any fixed costs are considered part of this. As far as I understand it anyway.
- SilasX 11y agoReally? UK mortgage APR numbers account for inspection costs and mortgage/title insurance?
- IanCal 11y agoAny required costs, yes: http://www.ybs.co.uk/mortgages/mortgage-glossary.html http://www.ybs.co.uk/mortgages/mortgage-glossary.html > Overall cost for comparison > APR (Annual Percentage Rate) - This is a figure which all lenders must quote when referring to mortgages. It is designed to show the total yearly cost of a mortgage stated as a percentage of the loan. It includes items such as the interest rate payable at the start of the mortgage and after the initial rate period has ended, Mortgage Application Processing Fee, Product Fee, Valuation Fee and Mortgage Fee. It is the overall cost for comparison purposes. This figure is intended to help customers to compare the overall cost of different loans. I'm not sure what mortgage and title insurance are, perhaps they're more US specific things. External costs (solicitors, taxes like stamp duty, etc) are not included in the figure.