APR vs IRR

[sman]

Hi, I've been looking around the site to find an explanation for this but can't find it. What exactly is the definition of these and can someone provide an example? For instance IIB have the following rates (according to mortgages.ie):
Lowest Tracker|Standard Var| Fixed 2 Yr| Fixed 3 Yr| Fixed 5 Yr
|APR IRR |APR IRR |APR IRR | APR IRR | APR IRR
IIB|5.06 4.95 |5.73 5.59 |5.28 4.85 |5.24 4.85 |5.24 4.99

(Sorry about the formatting of above - hope its readable)

Going by this, the The IRR for fixed 2 or 3 year is the best rate but looking at APR ,the tracker is the best...

Which rate actually applies? and which would be better?

 

[ClubMan]

Any use?

can anyone explain to me what the Internal Rate of Return (IRR) is?

I presume what they're referring to as the IRR here is the nominal rate as compared with the APR which takes into consideration all charges, the specifics of how the nominal rate is applied etc. APR is the most appropriate figure for comparing loan rates from different institutions. Cost per thousand for the same amount and term might also help.

 

[Gulliver]

Sman
I would like to know the context in which these rates were quoted. Was it part of an advertisment?

All aspects of the APR are detailed in the Consumer Credit Act 1995, which includes the following:-

An advertisement in which a person offers to provide or arrange the provision of credit shall, if mentioning a rate of interest, contain a clear and prominent statement of the APR, using a representative example if no other means is practicable, and no other rate of interest shall be included in the advertisement. (I have added the underlining)

 

[ClubMan]

I would like to know the context in which these rates were quoted. Was it part of an advertisment?

Doesn't this clarify?

For instance IIB have the following rates (according to mortgages.ie)