A-Z Mortgage Terms

• The amount you borrow from the lender.

• The total charge for the loan including fees and interest expressed as a percentage.

• Mortgage payments which have not been paid as requested and have become overdue.

• The amount you owe, after taking payments (credits) and any debits into account.

• The Bank of England 'repurchase' or 'repo' rate which is main factor influencing interest rates charges by lenders.

• Covers the house you are buying against damage - take it out from the day you exchange contracts.

• A buy to let mortgage is a loan used to purchase a second property with the intention of letting it out to tenants. Many people want to increase the size of their property portfolio to take advantage of rising house prices and rental rates

• The balance of your mortgage loan excluding costs and interest outstanding.

• Cashback mortgages offer an initial lump sum that can be used for costs such as legal fees, stamp duty, removals, new furniture or home repairs. Lenders normally offer up to one percent of the loan amount as an incentive.

• The property. The lender can take possession and sell it if the borrower does not keep up the mortgage payments.

1. The final legal transfer of ownership of the property - when the property becomes yours.
2. The start of the mortgage also known as 'drawdown'.

• Cover for the contents of your home - including furniture, appliances and personal items - against damage and theft.

• The written agreement between the seller and the buyer of a property to transfer ownership.

• Solicitor or licensed conveyancer who deals with the legal aspects of buying or selling land or property.

• The legal work involved in the sale and purchase of land or property

• Interest is calculated on the balance outstanding each day.
• So, when you make a payment, interest is calculated on the new balance straightaway which is usually better than annual interest.

• When remortgaging your property some lenders will allow you to consolidate all your debts (credit cards, personal loans etc) into the mortgage loan.
• A secured loan such as a mortgage usually offers lower interest rates than credit cards and unsecured loans, you can often save money by consolidating

Two deposits may be payable by the buyer:

• A reservation charge. The buyer pays this as a sign of commitment when they initially agree to buy the property.
• The deposit. A percentage of the price of the property, paid when contracts are exchanged

• Discounted mortgages are variable rate loans which offer a reduction in the lender’s standard variable rate for an agreed period of time.

• Drawdown is the date when the mortgage starts.

• The difference between the value of the property and the amount of any loan secured against it.

• A charge payable on certain types of loan if it is repaid or partly repaid within a certain period eg during a fixed-rate period or while a discount applies.

• An equity release mortgage allows you to access the equity tied up in your property to fund the deposit or purchase of an additional property.
• The amount of eqiuity depends on the difference between the value of the property and the amount of any loan secured against it.

• Work required on the property before the mortgage loan can be issued.

• In England and Wales (not Scotland), the point when both buyer and seller are legally bound to the transaction and at which point the buyer should take out buildings insurance on the property.

• A letter requesting payment and sent to a customer who is in arrears before legal proceedings start

• Outright ownership of the property and the land on which it stands.

• An additional loan by the lender to the borrower, which may be for any purpose and secured by the existing rtgagedeed.

• An annual charge payable by leaseholders to the freeholder