What is the difference between AER and APR?

« Back to full Remortgage Questions & Answers list

The term AER is used when you earn interest, APR when you pay interest.

The longer answer is a little more complicated.

APR (Annual Percentage Rate)

This is the annual rate of interest you would pay on an outstanding credit balance. For example, your mortgage, credit/store cards or loans.

Having a standardised rate allows you to easily compare different financial products. For instance, if you found two credit card deals, the APR would allow you to understand which would cost the least in interest payments over the course of a year. If you kept a balance of £1000 on a credit card for a year, this table shows how much you would pay in interest: [diagram showing 2 cards]

AER - When you earn interest (e.g. bank account)
APR - When you pay interest (e.g. mortgage, loan)

text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah
text blah

« Back to full Remortgage Questions & Answers list

Fill out the short form below to talk to an expert mortgage advisor.

Enter mortgage amount required:

Length of mortgage term:

Step 2 of 3: About your required mortgage

Estimated property value?

Are you a first-time buyer?
YesNo

Do you need to self-certify your income?
YesNo

Have you:(tick any that apply)

	Had a CCJ or Default registered against you?
	Missed one or more secured loan or mortgage payments in the last 12 months?
	Been declared bankrupt or had an IVA?

Step 2 of 3: About your mortgage

Estimated property value?

How much would you like to borrow?

Proceed to step 3.

Final Step: To finish we simply need your details to find you your best mortgage deal

First name:

Last name:

Phone number:

Alternate phone number:

E-mail address:

Date of birth:

First line of current address:

Current postcode:

Based on your requirements we have selected the FSA regulated broker Broker Name to help you with your enquiry.

Please click SUBMIT to confirm that you are happy for them to contact you by telephone/e-mail.