Base Rate Tracker: These mortgages track the Bank of England Base Rate, with the interest rate changing as the base rate rises or falls.
This is the amount that you owe under the mortgage with interest being charged on this sum.
The common term for a series of property transactions linked to your sale or purchase through your buyer or seller.
An independent ombudsman, set up by parliament to help resolve individual disputes between consumers and financial businesses.
A fee which may be charged when the amount borrowed is more than a given percentage of the value of the property. In these cases, the lender will use the fee to purchase an insurance policy to protect them against financial loss, in case a borrower doesn’t meet their mortgage payments. The fee is usually payable in full upon completion. You would still be liable for any mortgage shortfall debt if, after possession, the sale proceeds are not enough to repay your outstanding debt.
The percentage figure that determines how much interest you pay.
The organisation responsible for keeping and maintaining the details of land ownership in England & Wales, referred to as the Land Register. In Scotland this register is maintained by the Registers of Scotland and in Northern Ireland by the Land and Property Services.
A legal title where the land is owned under a lease between the leaseholder and the freeholder. The lease gives the leaseholder the right to use the land for a fixed period of time, subject to the conditions of the lease including payment of ground rent to the freeholder. The most common alternative is a freehold.
A mortgage is a legal way of using property as security for the repayment of a debt.
This is a sum of money paid to your mortgage account in addition to your normal monthly payment, with a view to paying off your mortgage earlier or to reduce your monthly payments.
The full repayment of the loan by the borrower.
A residential mortgage is a loan borrowed from a bank or building society to buy a house or other property for the borrower or borrowers to live in. The loan is secured against the property and is repaid over an agreed period of time.
A government tax you’ll have to pay if the price of the property you’re buying is above a minimum amount (specified by the government and subject to change). The percentage you pay varies according to the value of the property and is paid on a sliding scale. For further details visit HM Revenue & Customs website.
This type of valuation is used by the mortgage provider to check the value of the property and make sure it’s suitable to use as security for your mortgage. A Surveyor will be able to provide a more detailed report for your own use so you’re fully aware of any structural issues. You can find more information on local surveyors and different types of surveys they offer on the Royal Institute of Surveyors (RICS) website at www.rics.org/uk/
A variable rate of interest set by a lender, which many mortgage products change to when their Promotional Period ends. Changes to a Standard Variable Rate are made at a lender’s discretion and are not directly linked to an external rate.
Variable rate mortgages track the Bank of England Base Rate (BBR). Rates move up or down as the base rate changes.
When the seller has provisionally accepted the buyer’s offer.