UK finance jargon - in plain English
The total yearly cost of borrowing, including interest and mandatory fees.
APR stands for Annual Percentage Rate. It's the total cost of borrowing money over a year, expressed as a percentage, and it includes both the interest rate and any mandatory fees. It lets you compare loans and credit cards on a like-for-like basis.
You apply for a credit card with a 24.9% APR. Carry a £1,000 balance for a full year without paying it off and you'd owe roughly £249 in interest. Most people are genuinely surprised how fast that adds up.
Numbers simplified for illustration. Actual rates and tax rules may change.
Many people assume APR and interest rate mean the same thing. The interest rate is just the cost of the loan; APR folds in mandatory fees too, which often makes it a better comparison tool.