Accidental Death Benefit
Connected to Life Insurance, the Accidental Death Benefit covers you if you were to die unexpectedly. It does not cover disease, illnesses, self-harm or a death resulting from dangerous behaviour.
Agreement in Principle
Annual Percentage Rate
Often referred to as APR, the Annual Percentage Rate is what Lenders provide to detail the true cost of borrowing. It takes into account everything from the amount of the loan, interest rates to discount points and any additional fees.
Arrangement Fee
An 'Arrangement Fee' is what you will pay your Lender to set up your mortgage. Most Lenders allow Borrowers to choose from paying upfront or adding the payment to the mortgage itself, although interest rates will be added.
Base Rate
The Base Rate is something that you will hear most often with Variable-Rate Mortgages. The Base Rate itself is determined by the Bank of England. Mortgage companies often set their own Standard Variable Rates based on the official figure. Tracker Mortgages specifically track the rate set by the Bank of England.
Capital
Capital is simply the word used for the amount of money that you have borrowed from your Lender to purchase the property.
Capped Rate
A Capped-Rate Mortgage is a type of Variable-Rate Mortgage except the interest rate is capped by your Lender, so your payments never exceed that figure.
Cash-Back Mortgage
A type of mortgage that will pay out a lump sum in cash upfront. The amount is often a percentage of your overall mortgage. Most often offered as an incentive to entice clients.
Collar Rate
A Collar Rate is the opposite of a Capped Rate, it's an interest rate that is capped by your Lender so your interest rate cannot fall below that figure.
Completion
Most often heard in estate agency terms, a 'Completion' is when the sale of a property has gone through and you are now the legal owner.
Conveyancing
Conveyancing covers all the legal aspects of property ownership. When selling or buying a property, a specialist Solicitor called a Conveyancer can be instructed to oversee the process of transferring the legal ownership from Seller to Buyer.
Decreasing Life Insurance
Decreasing Life Insurance is a type of Life Insurance that is designed to pay off your mortgage in the event of your death. The amount of cover decreases throughout the policy, in line with your mortgage payments.
Early Repayment Charges
Most mortgages offer the option for early repayment, however, some Lenders charge a fee for this benefit - the Early Repayment Charge. It's important to consider this if you can see yourself regularly making over payments.
Equity
What you own from the deposit that you put down to what you have paid off the mortgage.
Exchange
When Buyers and Sellers officially exchange contracts making the deal legally binding.
Family Income Benefit
The Family Income Benefit is a type of policy that provides a tax-free monthly payment, like income, to the household after the policy holder has died. A popular policy for parents with young children.
Fixed-Rate Mortgage
A type of mortgage in which the rates stay the same throughout the initial mortgage deal.
Flexible Mortgage
Offers flexibility in the terms of payment including overpaying, underpaying and taking payment breaks.
Often referred to as APR, the Annual Percentage Rate is what Lenders provide to detail the true cost of borrowing. It takes into account everything from the amount of the loan, interest rates to discount points and any additional fees.
Arrangement Fee
An 'Arrangement Fee' is what you will pay your Lender to set up your mortgage. Most Lenders allow Borrowers to choose from paying upfront or adding the payment to the mortgage itself, although interest rates will be added.
Base Rate
The Base Rate is something that you will hear most often with Variable-Rate Mortgages. The Base Rate itself is determined by the Bank of England. Mortgage companies often set their own Standard Variable Rates based on the official figure. Tracker Mortgages specifically track the rate set by the Bank of England.
Capital
Capital is simply the word used for the amount of money that you have borrowed from your Lender to purchase the property.
Capped Rate
A Capped-Rate Mortgage is a type of Variable-Rate Mortgage except the interest rate is capped by your Lender, so your payments never exceed that figure.
Cash-Back Mortgage
A type of mortgage that will pay out a lump sum in cash upfront. The amount is often a percentage of your overall mortgage. Most often offered as an incentive to entice clients.
Collar Rate
A Collar Rate is the opposite of a Capped Rate, it's an interest rate that is capped by your Lender so your interest rate cannot fall below that figure.
Completion
Most often heard in estate agency terms, a 'Completion' is when the sale of a property has gone through and you are now the legal owner.
Conveyancing
Conveyancing covers all the legal aspects of property ownership. When selling or buying a property, a specialist Solicitor called a Conveyancer can be instructed to oversee the process of transferring the legal ownership from Seller to Buyer.
Decreasing Life Insurance
Decreasing Life Insurance is a type of Life Insurance that is designed to pay off your mortgage in the event of your death. The amount of cover decreases throughout the policy, in line with your mortgage payments.
Early Repayment Charges
Most mortgages offer the option for early repayment, however, some Lenders charge a fee for this benefit - the Early Repayment Charge. It's important to consider this if you can see yourself regularly making over payments.
Equity
What you own from the deposit that you put down to what you have paid off the mortgage.
Exchange
When Buyers and Sellers officially exchange contracts making the deal legally binding.
Family Income Benefit
The Family Income Benefit is a type of policy that provides a tax-free monthly payment, like income, to the household after the policy holder has died. A popular policy for parents with young children.
Fixed-Rate Mortgage
A type of mortgage in which the rates stay the same throughout the initial mortgage deal.
Flexible Mortgage
Offers flexibility in the terms of payment including overpaying, underpaying and taking payment breaks.