A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

APR
Stands for Annual Percentage Rate of charge. The rate of interest charged on a loan taking into account the total interest payable and other charges such as brokers' fees/legal fees.

AUTOSCORE
The process of using online credit search facilities to find out an applicant's credit status.

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BROKER
(Mortgage/Finance) A professional who will find a lending company for you then liaise with them on your behalf.

BRIDGING FINANCE
An interest only short term loan usually only over 12 months.

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CAPITAL REPAYMENT MORTGAGE
Payments contribute to both the interest on your mortgage and the capital you borrowed. At first your payments contribute largely to the interest, then in the later stages a higher percentage will be devoted to repaying the capital.

CAPPED RATE
Although the mortgage rate can move up and down there is a maximum rate above which it cannot go above. Usually for a set period of time.

CASHBACK
Type of mortgage loan where the borrower is given back a sum of money (usually a percentage of the loan) soon after completion of the mortgage or loan. Commonly used by lenders as an incentive to promote their products.

CCJ
County Court Judgment. A judgment made by a County Court against a debtor for money owed.

CFB
Corporation of Finance Brokers. An association aiming to ensure that member firms are kept up to date with changing legislation and current trends within the profession, and to enhance the status and ethical standards of finance brokers.

CONVEYANCER
A person, used as an alternative to a solicitor, to carry out the legal work involved in buying and/or selling a property

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DISCOUNTED RATE
Gives you a reduction on a variable rate for a specific period. If, during this period the base rate should rise or fall, you will still qualify for the discount and therefore pay a lower rate. Usually for a set period of time.

DOUBLE INSURANCE
Policies vary from lender to lender but generally, double insurance offers protection against sickness, accident and redundancy for the first and second wage earners.

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EMERGENCY HOME ASSISTANCE
An insurance policy that provides a specific tradesman to carry out repairs in the event of an emergency in the home.

ENDOWMENT
A life assurance policy that is designed to produce a lump sum which can be used to pay off an interest only mortgage.

EXCHANGE OF CONTRACTS
Agreement signed by house purchaser and vendor legally committing themselves to the transaction. This binds the person buying the house to completing the purchase within a given time limit.

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FISA
The Finance Industry Standards Association. Regulatory body working to promote and enforce high standards in the finance industry.

FIXED RATE
The rate is fixed for a specific period, so you have the security of knowing what your payments will be. Following this period, the rate will usually revert to the lender's standard variable rate.

FLEXIBLE MORTGAGES
These give various benefits which usually include the ability to change payments in line with your circumstances. They may also allow you to take "payment holidays" and to borrow back any overpayment you may have made.

FREEHOLD
A property where you own both the property and the land on which it is built.

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INCOME REPLACEMENT
An insurance policy that will provide an income in the event of unemployment, accident or sickness

INCOME SUPPORT FOR MORTGAGE INTEREST
Only applies to people who took out a mortgage prior to 1st October 1995. Help with mortgage payments when your income is adversely affected.

INSURANCE TERM
A life insurance policy that is often linked with a mortgage or loan. The premium goes towards insuring your life, and will pay off the loan in the event of your death.

INTEREST ONLY
This is where you only pay the interest on your mortgage and you will require a separate investment vehicle to pay off the balance after the end of the term.

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LEASEHOLD
The buyer of leasehold property owns the property for a set number of years, but doesn’t own the land on which the property stands.

LENDER
The company that provides you with the money for a loan or mortgage.

LEVEL TERM ASSURANCE
A type of life assurance that pays out a cash lump sum if the policy holder dies during the term of the cover.

LIFE ASSURANCE
An insurance policy which pays out a cash lump sum upon the death of the policy holder.

LTV
Stands for Loan To Value. This is the size of the loan/mortgage outstanding as a percentage of the value of the property or price being paid for the property, for example, a property valued at £50,000 with a mortgage of £45,000 would have an LTV of 90%.

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MCRI
Mortgage Code Register of Intermediaries. A register maintained by the Mortgage Board containing the names of mortgage brokers subscribing to the Mortgage Code.

MGI
Mortgage Guarantee Insurance. An insurance policy designed to cover any shortfall between the amount owed on a mortgage and the value of the property. Benefits the lender in the event of repossession

MIG
Mortgage Indemnity Guarantee. See MGI

MORTGAGE
A loan to purchase a home.

MORTGAGE DEED
Document detailing a loan to purchase a home.

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NEGATIVE EQUITY
The situation where the amount owed on a mortgage is more than the value of the property.

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OFFER OF ADVANCE
Sometimes informally known as a mortgage offer. This document details the terms and conditions upon which the lender is prepared to make a mortgage loan.

OFFICE COPIES
Copies of documents held at Land Registry showing ownership and mortgages outstanding on a property.

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PAYMENT PROTECTION INSURANCE
This covers the payments of your loan in the event of unforeseen circumstances that affect your regular income such as ill health or job loss.

PROCESSING
The administration and paperwork involved in taking a loan from application stage to receipt of funds.

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REMORTGAGE LOAN
Taken out by a borrower to replace a mortgage secured on the same property, in order to free up capital. Often taken out with a different lender to achieve a better interest rate.

REPRESENTATIVES
Local representatives who are available on request for face-to-face consultation to answer any questions or queries you might have.

REPAYMENT MORTGAGES
With a repayment mortgage you pay part interest and part capital repayments to the lender each month and in this way the capital that you borrowed is reduced until the loan is repaid.

RETENTION
Sum of money retained by the lender from a mortgage advance until improvements or repairs are completed as stipulated by the Valuer.

RTB
Legislation that gives council house tenants the 'Right to Buy' their homes.

REDEMPTION PENALTIES
When a loan is paid off early, either in full or in part, many lenders will charge a fee. This particularly applies to Fixed, Discounted or Capped rate loans or mortgages.

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SEALING FEE
A charge made by lenders when a mortgage is paid off.

SECOND CHARGE
A second lender takes a charge over the property to secure a loan, whilst the first mortgage remains outstanding.

SECOND MORTGAGE
A second charge or loan registered by a company or building society directly behind the first mortgage.

SECURED LOAN
A loan for which an asset, often property is used as security for the lender in the event of default by the borrower.

SECURITY
When a loan is taken out it can be 'secured' on a property. The borrower agrees that in the event of default on repayments, the lender can claim the property. Where property is offered as security, lenders are generally prepared to offer more flexible terms and lower interest rates.

SECURITY ADDRESS
When taking out a secured loan or mortgage, the security address is the address of the property that is being offered as security for the loan.

SELF-CERTIFIED
Allowing an applicant to personally confirm how much he or she earns, without employer or accountant documentation.

SETTLEMENT FIGURE
The sum quoted in order for a loan to be fully repaid on a date earlier that the contracted term.

STAMP DUTY
A tax paid on the purchase of properties costing more than £175,000.

STANDARD SECURITY
The equivalent of the Legal Charge in Scotland.

STATUS
The credit-worthiness of a potential borrower.

STRUCTURAL SURVEY
A detailed survey of the structure of a building carried out by a Structural Engineer or Chartered Building Surveyor.

SUBJECT TO STATUS
Dependent on an applicant's credit history.

SUB PRIME MORTGAGE
A mortgage granted to a person who is unable to borrow money secured on a property from a high street lender due to a poor credit rating, arrears on another mortgage or inability to prove a satisfactory level of income.

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TERM PERIOD
Term of a loan expressed in months or years.

TERM ASSURANCE
A life insurance policy often linked with a mortgage or loan. The payments you make insure your life and will pay off the loan in the event of your death.

TITLE DEEDS DOCUMENTS
Detailing all past and present ownership of a property and institutions that have registered a charge against the property. Held by the first mortgagee lender while their loan is in existence.

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UNDERWRITING
The process by which the ability of a prospective borrower to repay a loan is assessed. The process takes into account various factors including employment history, financial status, previous credit history and current earnings.

UNSECURED LOAN
Any loan that is not backed by collateral

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VALUATION INSPECTION
A valuation inspection usually precedes a valuation of any property for mortgage or other lending purposes and provides information which will be used to determine the value of a property.

VARIABLE RATE
A rate of interest which may go up or down during the lifetime of a loan.

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