AN EXPLANATION OF A.P.R AND WHAT TO LOOK OUT FOR
· APR stands for Annual Percentage Rate and is supposed to illustrate the `true cost’ of a loan (e.g. it includes set up fees, commission etc.)
· In the case of Secured Loans, the rate only includes Payment Protection Insurance (PPI) if it is non-optional
· Most Secured Loan providers make the Insurance optional, so this charge is not shown in the APR
· This makes it possible for a Company advertising a lower APR to ultimately charge you more if their PPI is more expensive
· Based on your creditworthiness the actual APR you are charged may be less or more than the one advertised
· It’s worth bearing in mind, you do not have to take out the Payment Protection Insurance from the same people you take a Loan out with. It may be cheaper to shop around.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME