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APRC stands for Annual Percentage Rate of Charge and is used within financial services to help customers compare the total cost of borrowing between products they may be considering. The APRC given on a loan will include the whole cost of the borrowing, including any charges, upfront fees etc. The calculation of an APRC is complicated though the important thing to remember is you need to compare one loan carefully against another – for example the same term and loan amount as these will change the APRC significantly. Another important factor is your actual repayments and clearly they can be compared with other offers of finance, subject to weighing up other factors like default charges or the way interest is calculated. We are here to help of course so please ask us if you are unsure about how any of these figures affect your loan.

The “soft search” that is carried out as part of your initial application out has no adverse effect on your credit file. You will see the search on your own credit file but lenders will not see it. If you decide to go ahead and take out a loan, then we will be required by the lender to make a search visible to other lenders.

A CCJ (County Court Judgement) is issued by a County Court to a person who fails to pay an outstanding debt. An unsettled CCJ will affect an individual’s credit rating and may result them being refused credit. CCJ details remain on a person’s credit file for six years. If the debt is fully settled within 30 days of the date of the judgement, it will not be listed on the credit register.

Usually associated with mortgages and expressed as a percentage, this is the loan amount in relation to the value of the property it is secured against. For example, someone wanting a £90,000 mortgage to purchase a £100,000 house would be borrowing 90% LTV.

A variable rate is an interest rate that can fluctuate in the future and may be is generally cheaper than a fixed rate. Lenders sometimes link their variable rates to other rates such as the Bank of England Base Rate or LIBOR. Movements in these rates would affect the rate charged on your loan. If a lender doesn’t link their rate to anything, then they don’t have to increase your rate if base rates go up, but they also don’t have to reduce their rates if base rates go down.

A Fixed Rate means the rate of interest, and therefore your repayments will not change for the period stated or selected. This may be for typically two or three years and is sometimes chosen to help customers budget monthly for the repayments without the worry of it going up. At the end of the fixed rate period chosen the rate will revert back to a ‘Variable Rate’ and as the name implies, some changes in repayment amount may occur – see above section of FAQ.