APR — the annual percentage rate — rolls the interest and mandatory fees of a loan into one yearly number. It exists so you can compare offers fairly: the lower the APR for the same amount and term, the cheaper the loan.
A worked example
Borrow £10,000 over 5 years at 9.9% APR and you repay about £212 a month — £12,745 in total. The same loan at 6.9% APR costs about £198 a month, or £11,905 total. Three percentage points saves roughly £840.
What APR does not include
APR assumes you keep the full term and never miss a payment. Late fees, early-settlement charges (we don't have any) and optional insurance sit outside it — always read those lines too.
Representative vs guaranteed
"Representative APR" must be offered to at least 51% of applicants. Your personal quote depends on your credit file — which is why soft-search eligibility checks matter before you commit.
Try it yourself
Our homepage calculator shows the monthly payment, total and interest for any amount, rate and term. Play with the sliders before you apply.
