Annual Percentage Rate
The Annual Percentage Rate is the fraction of the loan amount you have taken out which you must repay each year. Thus, an Annual Percentage Rate of 10% on a loan of £100,000 pounds means you have to repay £10,000 per year, but remember you won’t just be paying back £100,000 pounds – on any kind of loan you will always have to pay back more than you borrow so, for example, you could expect to be repaying a loan for 15 years at an Annual Percentage Rate of 10%.
Due to the advertising regulations, all lenders MUST show their typical Annual Percentage Rate offer across the whole spectrum of their customers, not just their most attractive APR.
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