APRC (Annual Percentage Rate of Change)
The Annual Percentage Rate of Change is the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit.
Lenders may charge an arrangement fee for setting up your mortgage account. This is usually payable up front, but in some situations the lender may allow this fee to be added to the loan.
This covers your home against damage or loss as a result of fire, flood and other accidental damage. It doesn’t include loss or damage caused to your possessions, which requires separate Contents Insurance.
Lenders charge this fee for securing mortgage funds, usually special deals such as fixed or capped rates. It’s usually payable up front although the lender may allow it to be added to the loan.
The finalising of the sale when all the monies are passed over and the purchaser has legal right to the property.
A specialised insurance policy that covers the possessions within your home such as furniture, clothes etc. as opposed to the actual building which should be covered by separate Buildings Insurance policy.
If you own a freehold property, you are the outright owner of the property and associated land.
The legal and administrative requirements usually undertaken by a solicitor when in buying a home.
A full credit search will be carried out before an offer is made, checking the personal financial history of each applicant.
An arrangement that gives you a set reduction, or ‘discount’ off standard variable rates for a specified period of time.
Equity is how much of the property you own outright, i.e. how much would be left after selling the property and paying off the mortgage.
At exchange of contracts both you & the seller are legally bound by contract & the sale of the house has to go a head. If you drop out you are likely to lose your deposit.
An arrangement which fixes your mortgage rate at a set rate for a specified period of time.
Allows you to change your mortgage as your circumstances change. If you’re feeling flush, you can pay extra to save thousands of pounds in interest and reduce your mortgage term.
If you are a leaseholder, you own the rights to live in a property for a specific period, but someone else owns the land it is built on (you’ll usually pay a nominal annual rent to the owner of the land).
This means Loan To Value. It’s the size of a loan described as a percentage of the purchase price. However, please note that if the valuation of the property is lower than the price you have agreed, the LTV will be based on the valuation price.
No Extended Tie In
This means that at the end of your fixed, capped or discounted rate period, you will not have to pay an early redemption charge(s) if you pay off your mortgage early.
Some interest rates have portability options. This means that if you move home during the discounted or fixed rate period and stay with the same lender, you can enjoy the same rate, on the amount outstanding on your original loan, for the remainder of the discounted or fixed rate period. Conditions apply – please contact us or email us.
When you move your mortgage to another mortgage lender without moving home.
Stamp Duty Tax
Stamp duty is the tax that you pay when you buy property.