{"id":135,"date":"2016-03-23T13:30:47","date_gmt":"2016-03-23T13:30:47","guid":{"rendered":"http:\/\/www.orchardmortgages.co.uk\/?p=135"},"modified":"2016-03-23T13:30:47","modified_gmt":"2016-03-23T13:30:47","slug":"this-is-another-test-post","status":"publish","type":"post","link":"https:\/\/orchardmortgages.co.uk\/index.php\/2016\/03\/23\/this-is-another-test-post\/","title":{"rendered":"New Mortgage Changes"},"content":{"rendered":"<p>New changes came into effect within the mortgage market on the 21<sup>st<\/sup> March 2016 in the guise of the EU Mortgage Credit Directive.<\/p>\n<p>We may now be presented with 2 different documents if we are provided with a range of lenders and products.&nbsp; These documents have been known until the 21<sup>st<\/sup> March as Key Facts Illustrations.<\/p>\n<p>They are now either a Key Facts Illustration Plus or an ESIS Illustration.&nbsp; Both documents will provide the same information but in different formats dependant on which document the lender has chosen.<\/p>\n<p>One of the major changes to these documents is the overall costs of the borrowing.<\/p>\n<p>As borrowers we have been aware for a long time that lenders will show us and APR rate which is the \u201cannual rate charged for borrowing expressed as a single percentage number that represents the actual yearly costs of funds over the term of the loan\u201d.&nbsp; This was shown as the cost per pound borrowed.<\/p>\n<p>The APR\u2019s have now been replaced by APRC rates \u201cAnnual Percentage rate of Charge\u201d.&nbsp; The rates that have been used in order to calculate the new APRC rate are as follows: The highest average Bank of England Base Rate over the last 20 years (currently 7.5%) minus the current Bank of England Base Rate (currently 0.5%), plus the lenders Standard Variable Rate.<\/p>\n<p>i.e. 7.5% &#8211; 0.5% + 3.99% this would show an APRC rate of 10.99% along with the monthly payment based on this rate.<\/p>\n<p>These rates could be classed as&nbsp; \u201cshock rates\u201d to show what interest rates may rise to in the future and to ensure that borrowers are aware of the risks associated with those rises.&nbsp; This will also enable borrowers to compare the overall cost of borrowing in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"New changes came into effect within the mortgage market on the 21st March 2016 in the guise of the EU Mortgage Credit Directive. We may now be presented with 2 different documents if we are provided with a range of lenders and products.&nbsp; These documents have been known until the 21st March as Key Facts&#8230; <a class=\"view-article\" href=\"https:\/\/orchardmortgages.co.uk\/index.php\/2016\/03\/23\/this-is-another-test-post\/\">View Article<\/a>","protected":false},"author":1,"featured_media":200,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=135"}],"version-history":[{"count":0,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/orchardmortgages.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}