Jargon buster

• APR
• Fixed rate
• Interest
• Quote
• Repayments
• Term

APR

APR – or annual percentage rate - helps you compare the real cost of borrowing. Lenders have to quote the APR when they advertise a loan or borrowing rate. The APR must also include any charges made by the lender.

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Fixed rate

With a fixed rate, your repayments stay the same for the entire loan.

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Interest

When you borrow money, the lender will make a charge – known as interest. For example, if you borrow £100 at an interest rate of 10% for one year, you would have to repay £110 at the end of the year.

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Quote

The estimated cost of a loan, usually showing monthly repayments and the total amount that will need to be repaid.

The actual cost of your loan could be different from the quote - we work out the actual cost based on your specific circumstances.

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Repayments

The regular amount a borrower pays to a lender in order to repay the loan. Most loan repayments have to be made once a month.

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Term

The length of a loan, which is usually given in months.

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