A-Z Jargon Buster!

Balance
The amount you still owe on your mortgage at any given time.

Bank of England Base Rate
The main interest rate set by the Bank of England, which often influences tracker mortgages and lenders' standard variable rates.

Bridging Loan
A short-term loan used to ‘bridge’ the gap when buying a new property before selling your current one.

Broker / Intermediary
A professional adviser (like us!) who helps you find and arrange a suitable mortgage or other financial products.

Buildings Insurance
Insurance to protect your property against major structural damage, such as fire, flood or storm damage.

Building Regulations
Legal standards that any building work must meet to ensure safety and quality.

Buy to Let
Where a property is purchased or remortgaged with the intention of letting it (renting it) to someone.

Capital and Interest
Your monthly mortgage payment that covers both the interest and reduces the loan amount.

Cashback Mortgage
A mortgage that gives you a lump sum of cash on completion—either a fixed amount or a percentage of your mortgage.

CHAPS Fee
The fee charged to transfer the mortgage funds electronically to your solicitor or bank account.

Chain
A sequence of linked purchases/sales, where each move depends on another property sale completing.

Charge
A legal claim against a property, typically relating to a mortgage or secured loan.

Completion
The final stage of the process—for a purchase, ownership transfers, and you can move into your new home. For a remortgage, your mortgage has been moved from one lender to another.

Contents Insurance
Insurance that covers your belongings (furniture, appliances, personal items) against theft or damage.

Contract
The legal document outlining the terms of the property purchase.

Covenant
A legal condition in the property’s title deeds, which current and future owners must follow. A restrictive covenant stops certain actions (e.g. building an extension).

Conveyancer
A specialist who handles the legal side of buying or selling property (similar to a solicitor).

Conveyancing
The legal process of transferring ownership of a property from seller to buyer.

Credit Scoring
A method lenders use to assess your eligibility for a mortgage, based on your financial information and credit history.

Critical Illness Cover
Critical illness cover provides a lump sum payout if you're diagnosed with a covered medical condition, helping you manage expenses and focus on recovery without financial stress.

Debt Consolidation
Combining existing debts (such as loans or credit cards) into one loan, often using a mortgage.

Debt-to-Income Ratio (DTI)
A calculation lenders use to compare your total monthly debt payments to your income.

Decision in Principle (DIP)
Another term for Agreement in Principle.

Deeds
Legal documents proving ownership of a property and its land.

Debt-to-Income Ratio (DTI)
A calculation lenders use to compare your total monthly debt payments to your income.

Defaults
A missed payment or failure to meet credit agreements, which stays on your credit file for six years.

Deposit
The upfront amount you must contribute towards the purchase price of the property.

Direct Debit
An instruction allowing regular payments to be automatically taken from your bank account.

Disbursements
The various legal fees and charges involved in buying or remortgaging a property, paid via your solicitor.

Discharge
Fully repaying your mortgage.

Discount Mortgage
A mortgage offering a reduced interest rate for an initial period (often 2–3 years).

Early Repayment Charge (ERC)
A fee charged by the lender if you repay your mortgage early during the initial rate period.

Easement
A legal right to use someone else’s land, such as a right of way.

Energy Performance Certificate (EPC)
A legal requirement showing how energy-efficient a property is, rated from A to G. Can help you with Green Mortgages (See ‘G’)

Equity
The difference between the property's current value and the amount you owe on your mortgage.

Equity Release
A way for homeowners (usually over 55) to access tax-free funds tied up in their property, without selling it.

Exchange of Contracts
The point when buyer and seller sign and exchange contracts—making the sale legally binding and agreeing the completion date.

Exit Fee
An administration fee some lenders charge when your mortgage ends.

Financial Conduct Authority (FCA)
The regulator for financial services in the UK, overseeing mortgage lenders and advisers. Formerly the FSA.

First-Time Buyer (FTB)
Someone who has never owned a property, either in the UK or abroad. Some lenders however will offer FTB products if you haven’t held a mortgage in a certain period prior.

Fixed Rate Mortgage
A mortgage where the interest rate stays the same for a set period, regardless of changes in the market.

Fixtures and Fittings
Items included in the sale of a property, like carpets, built-in wardrobes, or appliances.

Flexible Mortgage
A mortgage that allows overpayments, underpayments, payment holidays, or borrowing back overpaid amounts.

Freehold
You own both the property and the land it stands on.

Full Structural Survey
A comprehensive inspection of the property’s structure, including walls, roof, foundations, electrics and plumbing. Now called a Buildings Survey.

Further Advance
Borrowing additional money from your current lender, secured against your property.

Gazumping
When a seller accepts a higher offer after verbally agreeing to sell to another buyer.

Gazundering
When a buyer lowers their offer just before contracts are exchanged.

Gifted Deposit
A contribution to your deposit given to you by someone else, such as a family member.

Green Mortgages
A mortgage product available for properties that have certain EPC ratings or where the funds are being used for energy efficient purposes.

Ground Rent
A fee paid annually by a leaseholder to the freeholder.

Ground Rent Review Clause
A clause in lease agreements showing when and how ground rent may increase (often a key legal concern).

Guarantor
Someone who agrees to cover your mortgage payments if you are unable to, these are no longer available, instead see “Joint Borrower Sole Proprietor”.

Help to Buy (HTB)
Government-backed schemes designed to help people, particularly first-time buyers, purchase homes. No longer available for new purchases, but plenty of HTB loans still exist.

Help to Buy ISA
Government-backed savings products to help people save for a property deposit, with added bonus contributions.

Homebuyer’s Report
A mid-level survey that assesses the general condition of a property.

Home Insurance
Another term for Buildings and Contents Insurance.

IDD (Initial Disclosure Document)
A document explaining the services and fees of lenders and advisers so you can compare. Ours is called a Terms of Business.

Income Protection
Income protection insurance provides a regular income if you're unable to work due to illness or disability, ensuring you can keep up with mortgage payments, household bills, and everyday expenses while you recover.

Interest-Only Mortgage
You only repay the interest each month, with the loan amount due at the end of the term, typically via a repayment plan or investment.

Independent Legal Advice
The process where an independent, regulated solicitor explains the legal risks and terms of a mortgage to a borrower. This ensures the borrower fully understands the agreement and is not under pressure from anyone to sign. This may be required on JBSP mortgages (see ‘J’) or Limited Company Buy to Let mortgages.

Joint Applicants / Joint Mortgage
A mortgage taken by two or more people, sharing ownership rights equally.

Joint Tenants
A form of joint ownership where, if one person dies, their share automatically passes to the other owner(s).

Joint Borrower Sole Proprietor
A mortgage taken by two or more people, however only one person is named on the deeds of the property. Can be used in a variety of scenarios.

Key Facts Illustration (KFI) / ESIS
A document that clearly outlines the costs and features of a mortgage to help you compare options.

Land Registry
The official organisation that records property ownership.

Land Registry Fee
The cost of registering your property or mortgage changes with the Land Registry.

Leasehold
You own the property, but not the land it stands on, for a set time—often used for flats.

Let-to-Buy
Rather than selling, you keep your home and let it out, using it to support the purchase of a new home.

Life Insurance
An insurance policy that pays out if you die during the policy term, often used to repay the mortgage.

Lifetime ISA
Government-backed savings products to help people save for a property deposit, with added bonus contributions.

Limited Company Buy to Let
A Buy to Let (see ‘B’) owned by a Limited Company instead of in a personal name. Also see ‘SPV’ for more.

Local Authority Search
A search to highlight potential issues in the surrounding area, such as planning permissions or roadworks.

Loan to Value (LTV)
The mortgage amount as a percentage of the property's value.

Maturity Date
The date by which your mortgage must be fully repaid or renewed.

Monthly Interest
Where mortgage interest is calculated on a monthly basis.

Monthly Repayment
The amount you pay each month toward your mortgage.

Mortgage Broker Fee
The fee (if any) charged by your adviser for arranging your mortgage.

Mortgage Deed
The legal agreement securing your loan against the property.

Mortgage Illustration
A document showing all key details about your mortgage before you apply. See also ‘KFI’.

Mortgage in Principle (MIP)
The same as an Agreement in Principle!

Mortgage Offer
The formal document confirming the lender has agreed to give you a mortgage.

Mortgage Term
The length of time you’ll take to repay your mortgage (e.g. 25 years).

Negative Equity
When your property is worth less than the amount you owe on your mortgage.

New-Build Property
Property purchased brand new from developers. Often subject to specific loan products and lending rules.

NHBC (National House Building Council)
Provides a warranty for new-build homes against major structural defects.

Offset Mortgage
A mortgage linked to a savings account where the balance of your savings reduces the amount of mortgage interest charged.

Overpayment
Paying more than your normal monthly mortgage amount, helping reduce the balance faster and saving interest.

Payment Holiday
A period where you’re allowed to temporarily stop making mortgage payments, although interest continues to build.

Planning Permission
Consent from the local council for building works or changes to property use.

Portability/Porting
The ability to move your existing mortgage to a new property.

Premium
The amount you pay for an insurance policy, either monthly or annually.

Product Fee
A set-up fee for arranging your mortgage.

Product Transfer
Switching to a new mortgage product with the same lender, typically when your current deal ends.

Quirky

Okay, we admit we were struggling with a ‘Q’ - we love a quirky case, be that because of income, or credit profile or property type!

Rebuild Cost
The cost of rebuilding your home from scratch, used to set your insurance cover level.

Redemption
Full repayment of a mortgage.

Redemption
Full repayment of a mortgage.

Redemption Statement
A document showing exactly how much is needed to repay your mortgage at a given date.

Remortgage
Switching your mortgage to a new lender or product without moving home.

Rental Yield
The return on a rental property, calculated as a percentage of its purchase price.

Repayment Mortgage
Also known as a capital-and-interest mortgage—you pay both the interest and loan balance over time.

Retention
When the lender withholds part of the mortgage until repairs are completed.

Service Charge
A fee paid by leaseholders to cover maintenance and management of shared buildings and communal areas.

Special Conditions
Extra conditions set out in your mortgage offer which must be met before completion (e.g. proof of deposit, insurance).

Special Purpose Vehicle (SPV)
A company set up to hold property only. Used in a Limited Company BTL.

Solicitor
A legal specialist who handles the property transaction (also called a conveyancer).

Stamp Duty
A tax payable when buying property, depending on price and buyer type (e.g. first-time buyer or additional home).

Standard Variable Rate (SVR)
The default interest rate you move to after your initial mortgage deal ends.

Structural Warranty (e.g. NHBC, Premier Guarantee)
Protection against structural defects in new-build homes.

Subject to Contract
A term used to show that the agreement is not yet legally binding.

Survey
An inspection report on the property’s condition.

Surveyor
The professional who conducts the property survey.

Tenants in Common
Ownership between two or more people where each owns a specific share of the property. The word ‘tenants’ is not to be confused with the next entry!

Tenants
People living in a property without owning it.

Title
The legal record of property ownership.

Total Amount Payable
The overall cost of your mortgage, including interest and fees, over the full term.

Tracker Rate Mortgage
A mortgage where the interest rate moves in line with the Bank of England base rate.

Transfer of Equity
Adding or removing someone from the mortgage and property ownership.

Transfer Deeds
Legal document used to transfer ownership at the Land Registry.

Underwriting
The lender’s detailed assessment of your risk profile before approving a mortgage.

Under Offer
When a seller has accepted a buyer’s offer, but contracts haven’t yet been exchanged.

Underpayment
When a mortgage allows you to temporarily pay less than your normal monthly repayment (usually linked to previous overpayments).

Valuation
A check carried out by the lender to confirm the property is worth the amount you want to borrow.

Valuation Fee
The cost of the lender’s property valuation.

Variable Rate
An interest rate that can change at the lender’s discretion.

Vendor
The person selling the property.

Warranty

New Build properties or conversions will require a warranty such as NHBC, LABC etc.

Whole of Market Broker

An adviser who can access a wide range of lenders across the market, rather than being tied to a small panel or single lender.

We can’t think of how a xylophone relates to mortgages, so we might skip X…

You!

You are the most important person in any mortgage or insurance discussion, you need to be comfortable with what’s being recommended and suggested, your input is always appreciated and your happiness is our priority!

Zebra
A funny looking horse with a black-and-white striped coat. (Sorry, we couldn’t resist including this! Bonus points if you can find a mortgage term starting with a ‘Z’!)