Jargon Buster

Taking the mystery out of loans

• APR
• Representative APR
• Fixed rate
• Interest
• Payment protection
• 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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Representative APR

Representative APR - we will offer 51% of our customers this rate or less.

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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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Payment protection

Sudden illness, injury and involuntary unemployment could mean that you’re unable to meet your loan repayments. Payment Protection is designed to help. NatWest do not currently sell Payment Protection Insurance. You can find out more information about the types of protection products available to you by visiting the "Money Advice Service" website which has been produced by the Financial Services Authority.

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. We’ll give you the actual cost during your application.

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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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