EU lenders must quote an APRC — the annual percentage rate of charge — which folds one-off fees and recurring costs into a single comparable rate. This tool computes it from your offer.
Two mortgages with the same nominal rate can have very different APRCs once arrangement, valuation and account fees are included. The APRC is the number to compare across lenders.
This estimate follows the standard EU methodology but simplifies irregular fee schedules; the binding figure is the one in your ESIS sheet.
The APRC assumes the loan runs its full term at the stated rate, which makes it a weak guide for the products most people actually take. On a fix-then-revert mortgage the figure blends a known initial rate with an assumed one afterwards, and almost nobody stays on the reverting rate long enough for it to describe their cost.
It also excludes anything the lender does not require. Optional life cover, valuation upgrades and broker fees paid separately sit outside the calculation, so two offers with identical APRCs can still differ in what actually leaves your account.
The ESIS sheet is the document that binds, and it is standardised across the EU precisely so offers can be laid side by side. Comparing section by section — rate, APRC, total amount payable, early-repayment terms — is a more reliable method than comparing a single headline number.
Frequently asked questions
What is the APRC on a mortgage?
The annual percentage rate of charge: a single yearly rate that folds interest plus one-off and recurring fees into one comparable number. EU lenders must quote it under the Mortgage Credit Directive.
Why is the APRC higher than the nominal rate?
Because it includes costs the nominal rate ignores — arrangement and valuation fees, mandatory account charges and similar. The bigger the fees, the wider the gap.
Can I compare offers from different lenders with the APRC?
Yes — that is its purpose. The methodology is standardized across the EU, so a lower APRC means a genuinely cheaper credit for the same amount and term.