Jargon Buster
Jargon Buster
Agricultural Restriction
A Freehold covenant restricting the occupancy of a property to those engaged in agriculture.
Agricultural Restriction
A Freehold covenant restricting the occupancy of a property to those engaged in agriculture.
APRC
The APRC (Annual Percentage Rate of Charge) is a figure that is used to compare different mortgages. Defined by law, it includes repayments on the loan plus any fees such as booking, arrangement or redemption fees. The APRC shows the true cost of borrowing, and should appear on all mortgage illustrations and quotes.
APRC
The APRC (Annual Percentage Rate of Charge) is a figure that is used to compare different mortgages. Defined by law, it includes repayments on the loan plus any fees such as booking, arrangement or redemption fees. The APRC shows the true cost of borrowing, and should appear on all mortgage illustrations and quotes.
Adverse Credit
This is the term used if the borrower has suffered a poor credit history. This could include previous mortgage or loan arrears, CCJ’s or bankruptcy.
Adverse Credit
This is the term used if the borrower has suffered a poor credit history. This could include previous mortgage or loan arrears, CCJ’s or bankruptcy.
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Arrangement Fee
This is a fee you pay to your lender in return for providing you with a mortgage. Usually paid on completion or with application , these fees typically apply when you take out a fixed rate, discount or cashback mortgage.
Arrangement Fee
This is a fee you pay to your lender in return for providing you with a mortgage. Usually paid on completion or with application , these fees typically apply when you take out a fixed rate, discount or cashback mortgage.
ASU
Accident, Sickness and Unemployment insurance (See also MPPI). This insurance is designed to cover the borrower's mortgage payments, and other monthly commitments, in case of accident, sickness or involuntary unemployment.
ASU
Accident, Sickness and Unemployment insurance (See also MPPI). This insurance is designed to cover the borrower's mortgage payments, and other monthly commitments, in case of accident, sickness or involuntary unemployment.
Base Rate Tracker
The interest rate is variable but set at a premium (above) the Bank of England Base Rate for a period, or even the full term of the mortgage.
Base Rate Tracker
The interest rate is variable but set at a premium (above) the Bank of England Base Rate for a period, or even the full term of the mortgage.
Booking Fee
Arrangement fees are charged in connection with some mortgages. Often they are charged in connection with a fixed or capped rate loan. The fee is normally non-refundable if charged upfront. Sometimes it is added to the mortgage debt on completion.
Booking Fee
Arrangement fees are charged in connection with some mortgages. Often they are charged in connection with a fixed or capped rate loan. The fee is normally non-refundable if charged upfront. Sometimes it is added to the mortgage debt on completion.
Bridging Loan
Short term loan to facilitate the purchase of one property prior to the sale of another, releasing funds that are required for the purchase. Professional advice should always be taken prior to considering any bridging finance.
Bridging Loan
Short term loan to facilitate the purchase of one property prior to the sale of another, releasing funds that are required for the purchase. Professional advice should always be taken prior to considering any bridging finance.
Broker's Fee
A fee charged by an intermediary or advisor for identifying the most appropriate mortgage for the borrower.
Broker's Fee
A fee charged by an intermediary or advisor for identifying the most appropriate mortgage for the borrower.
Buy-to-Let
This is a mortgage designed for people who wish to purchase a property to rent out to others. The ability to repay this type of mortgage is often based on the projected rental income from the property, as opposed to the personal income of the borrowers.
Buy-to-Let
This is a mortgage designed for people who wish to purchase a property to rent out to others. The ability to repay this type of mortgage is often based on the projected rental income from the property, as opposed to the personal income of the borrowers.
Capital and Interest
Your monthly payments are partly to pay the interest on the amount you borrowed and partly to pay the outstanding mortgage and ongoing costs involved in a mortgage.
Capital and Interest
Your monthly payments are partly to pay the interest on the amount you borrowed and partly to pay the outstanding mortgage and ongoing costs involved in a mortgage.
Capped Rate
An interest rate charged on a mortgage, where there is a guarantee from the mortgagee, that the rate will not exceed a certain amount. This is usually for a set period of 1 – 5 years but which will reduce if the standard variable rate falls below the capped rate.
Capped Rate
An interest rate charged on a mortgage, where there is a guarantee from the mortgagee, that the rate will not exceed a certain amount. This is usually for a set period of 1 – 5 years but which will reduce if the standard variable rate falls below the capped rate.
Cashback
A payment you receive when you take out a mortgage. It may be a fixed amount, or a percentage of the amount of the mortgage.
Cashback
A payment you receive when you take out a mortgage. It may be a fixed amount, or a percentage of the amount of the mortgage.
CCJ
County Court Judgment. A decision reached in the County Court for non payment of debt. If you pay off the debt, the CCJ is satisfied and a note is put on your records to say this.
CCJ
County Court Judgment. A decision reached in the County Court for non payment of debt. If you pay off the debt, the CCJ is satisfied and a note is put on your records to say this.
Completion
When the sale and purchase of the property are finalised, and you become the owner of your new house.
Completion
When the sale and purchase of the property are finalised, and you become the owner of your new house.
Contract
Legally binding agreement of sale. In two identical parts, one signed by seller and one by purchaser. When the two parts are exchanged (exchange of contracts), both parties are committed to the transaction.
Contract
Legally binding agreement of sale. In two identical parts, one signed by seller and one by purchaser. When the two parts are exchanged (exchange of contracts), both parties are committed to the transaction.
Conveyancing
The legal process involved in buying and selling property.
Conveyancing
The legal process involved in buying and selling property.
Credit Scoring
This is a way in which lenders assess whether you are a good risk to offer a mortgage to.
Credit Scoring
This is a way in which lenders assess whether you are a good risk to offer a mortgage to.
Credit Search
A check the lender makes with a specialist company to find out whether you have any CCJs or a bad credit record.
Credit Search
A check the lender makes with a specialist company to find out whether you have any CCJs or a bad credit record.
Debt Consolidation
This is a means by which to repay high interest debts (such as credit cards and personal loans) by incorporating them into a new mortgage to benefit from lower interest rates and lower monthly payments. In the long term this may be a very expensive way of repaying these debts.
Debt Consolidation
This is a means by which to repay high interest debts (such as credit cards and personal loans) by incorporating them into a new mortgage to benefit from lower interest rates and lower monthly payments. In the long term this may be a very expensive way of repaying these debts.
Deed
A legal document which is ‘signed, sealed and delivered’, not just signed. This has special significance in law. Title to both freehold and leasehold property can only be transferred by deed.
Deed
A legal document which is ‘signed, sealed and delivered’, not just signed. This has special significance in law. Title to both freehold and leasehold property can only be transferred by deed.
Deposit
The amount of money you put towards buying your property.
Deposit
The amount of money you put towards buying your property.