Jargon buster glossary

Taking out extra money on top of your existing mortgage, often for home improvements.

How a lender works out if you can afford the mortgage payments, based on income, outgoings, and credit history.

Also called a Decision in Principle (DIP) or Mortgage in Principle (MIP). A statement from a lender saying they’re likely to lend you a certain amount, based on basic checks.

The overall cost of borrowing for a year, including interest and fees, shown as a percentage.

The interest rate set by the Bank of England, which can affect mortgage rates.

Short-term finance to help you buy a property before selling your current one.

A mortgage adviser who finds and arranges the best mortgage for you from multiple lenders.

Insurance that covers the structure of your home; usually required by lenders.

Linked house sales where each depends on the others completing.

The day you legally become the owner of the property and can move in.

Covers your belongings inside your home.

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

A new offer made by the seller after rejecting your first one.

The amount you put towards the purchase price of a property (the rest is covered by your mortgage).

See Agreement in Principle (AIP).

A mortgage with an interest rate lower than the lender’s standard variable rate (SVR) for a set time.

A fee you pay if you repay your mortgage early or switch deals during a fixed or discounted rate period.

The difference between your property’s value and the mortgage amount you still owe.

When buyer and seller sign contracts, making the sale legally binding.

A mortgage with an interest rate that stays the same for a set period.

You own the property and the land it’s on outright.

Another name for Additional Borrowing from your existing lender.

A mortgage where a family member agrees to cover repayments if you can’t.

Government schemes to help people buy a home with a smaller deposit.

A detailed survey on the condition of a property.

A document showing all the details and costs of your mortgage before you apply.

The percentage you pay your lender for borrowing the money.

A mortgage where you only pay the interest each month, not the capital.

You own the property but not the land it’s on, and usually pay ground rent/service charges.

A type of equity release for older borrowers.

The percentage of the property’s value you borrow (mortgage amount ÷ property value × 100).

See Agreement in Principle (AIP).

The total length of your mortgage, e.g. 25 years.

A mortgage linked to your savings account, which reduces the interest you pay.

Paying more than your required monthly payment to reduce your mortgage faster.

Moving your current mortgage deal to a new property.

A fee some lenders charge for a specific mortgage deal.

Switching to a new mortgage deal with your existing lender, usually at the end of your current fixed or discounted period, without changing the mortgage amount or term.

A document showing how much you still owe to repay your mortgage in full.

Switching your mortgage to a new deal, either with your current lender or a different one.

A mortgage where you pay both the capital and the interest each month.

Fees leasehold property owners pay for maintenance of shared areas.

A tax you pay when buying a property over a certain price.

A lender’s default interest rate after your fixed or discounted period ends.

An inspection of the property to assess its condition and value.

Moving to a new interest rate with your current lender, often called a Product Transfer.

The time you’re locked into a mortgage deal before ERCs apply.

Legal documents proving you own the property.

A mortgage with an interest rate that follows (or “tracks”) the Bank of England’s base rate plus a set percentage.