APRC is the total cost of a mortgage expressed as an annual percentage, designed to help you compare different mortgage deals.
What APRC Includes
It includes the initial interest rate, the lender's Standard Variable Rate (SVR) which applies after the initial deal ends, and all mandatory fees (arrangement, valuation, legal).
The Flaw in APRC
APRC assumes you will stay with the same lender for the entire 25-year term and pay their high SVR for most of it. In reality, most borrowers remortgage every 2 to 5 years, making the APRC figure somewhat misleading for practical comparison.