A poor track record of repayments on credit commitments, such as loans or credit cards. This can include CCJs, bankruptcy, defaults or missed payments.
Need help understanding your mortgage options?
A glossary can explain the words, but a conversation can explain what they mean for you. Our mortgage advisers can help you understand your options clearly.
Arrange a free consultationA
Also known as a Decision in Principle or Mortgage in Principle. This is a lender’s provisional indication that they may lend a sum of money, based on income, outgoings and credit history.
Arrears occur when you miss or fall behind on a mortgage, loan or other credit payment.
B
One of the most important interest rates in the UK. It influences the rates lenders charge for some mortgages and other forms of credit.
A mortgage taken out by a landlord for the purpose of renting a property to tenants.
C
The amount of money you borrow to purchase a property, also known as the loan amount.
The legal process involved when buying or selling a property, usually carried out by a solicitor or licensed conveyancer.
D
The down payment you make towards the purchase of a property. The required amount varies depending on your circumstances, lender, property and mortgage product.
E
A penalty fee that some lenders charge if you repay a mortgage early, commonly during a fixed-rate period.
The difference between the outstanding mortgage balance and the current market value of your property.
A way for homeowners aged 55 and over to release tax-free cash from their home without having to move.
F
A mortgage where the interest rate stays the same for a fixed period, giving you set monthly payments during that time.
You own the property and the land it stands on outright.
G
When a seller accepts an offer from one buyer, then later accepts a higher offer from another buyer.
When someone, commonly a family member, provides some or all of the deposit for a property purchase.
H
A former government savings scheme for first-time buyers. Existing account holders may still be able to save and claim a bonus within scheme deadlines.
I
The cost charged for borrowing money from a lender, expressed as a percentage of the loan amount.
A mortgage where you only repay the interest each month, meaning the original loan balance remains outstanding at the end of the term.
Another term for a mortgage broker or adviser who liaises between you and lenders to help arrange a mortgage.
J
A specialist mortgage where not all borrowers are named on the property title. An additional borrower’s income can be used to support affordability.
L
You own the property for a set number of years but not the land it stands on. The freeholder owns the land.
A mortgage where the term extends beyond your expected retirement age.
Where you let out your current home and buy a new residential property to live in.
A government savings product that can help eligible people save for a first home or retirement.
The size of your mortgage as a percentage of the property value. For example, a £100,000 mortgage on a £200,000 property is 50% LTV.
M
An adviser who helps find a suitable mortgage for your circumstances and liaises with lenders on your behalf.
A legal document confirming the mortgage agreement, with the property used as security for the loan.
N
When a property is worth less than the amount owed on the mortgage.
O
A mortgage linked to savings. The savings balance can offset the mortgage balance used to calculate interest.
Paying more than your required monthly mortgage payment, which can reduce interest and may shorten the mortgage term.
P
Transferring your existing mortgage product to a new property when you move home, often to avoid early repayment charges.
A fee charged by some lenders for certain mortgage products. It may be paid upfront or added to the mortgage.
R
Taking out a new mortgage on the same property, often at the end of a fixed rate to secure a new deal.
A mortgage where monthly payments include both interest and capital, so the mortgage is repaid in full by the end of the term.
S
A tax that may be payable when buying a property. The amount depends on the purchase price and circumstances.
The default interest rate a lender may charge after an initial mortgage deal ends.
T
The length of time over which you agree to repay the mortgage, such as 25 or 30 years.
The process of adding or removing someone from the legal title of a property.
A variable rate mortgage where the interest rate tracks another rate, usually the Bank of England base rate, plus a set percentage.
U
A property with no mortgage secured against it.
A person or team at the lender who assesses the mortgage application and decides whether the lender will lend.
V
An assessment of the property to check whether it is suitable security for the mortgage and whether the price is reasonable.
The seller of the property.
W
A legal document setting out how you want your estate, money, property and possessions dealt with after death.
Y
The financial return a buy-to-let property can earn, usually expressed as a percentage of the property’s market value before expenses.
No matching mortgage terms found. Try searching for another phrase, or speak to one of our mortgage advisers.
Speak with one of our mortgage experts
Whether you are buying, remortgaging, investing or reviewing your protection, our team is ready to help.
Book an appointment