APR in relation to a housing loan

W

WhiteCoat

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Hi All,

1. In a letter of approval for a mortgage, does the APR have any particular legal, regulatory or consumer protection significance?

2. What is the purpose of its obligatory inclusion and where is this obligation set out?

Thanks in advance for any light that can be shed here!
 
Hi WhiteCoat

Ignore it.

It has lost its relevance.

It is particularly confusing when it comes to fixed rates.

Brendan
 
Thanks Brendan,

Did it ever have any legal, regulatory or consumer protection significance?

If so, what changed? If not, do you have any idea why was it a prescribed disclosure in the first place?
 
In the old days when mortgage rates were high, the APR was a bit higher than the flat rate.

And lenders had different charges.

APR aimed to combine the interest rate and all these charges in one single figure

It is required to be quoted by the Consumer Credit Act.

Brendan
 
I remember at one stage lenders were forced to quote the APR over the term of the loan, when advertising a one year introductory low rate
 
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