Broker Insightmortgagesfinance strategyAPRC
The Rate vs APRC Trap
A 4.5% mortgage is not always cheaper than a 4.9% one. Arrangement fees, valuation costs, and legal fees can flip the comparison entirely. Always calculate total cost over the fixed period, not just the headline rate.
Lenders headline with their lowest rate products, but those products frequently carry arrangement fees of £1,500–£2,500. On a short 2-year fix, that fee spread across 24 months adds significantly to the effective cost. A broker calculates the full picture — (monthly payment × term) + all fees — before recommending a product.