Glossary

APR

Stands for 'Annual Percentage Rate' which helps you compare the cost of different mortgage deals. It takes into account the amount of interest you will pay, the length of the term of the mortgage, and certain other charges such as any arrangement fee.

Arrangement Fee

Lenders sometimes charge a fee to cover the work involved in setting up your mortgage or for certain mortgage rates.

Bank of England Base Rate

This is also known as the Bank of England's repo rate. This is announced from time to time by the Bank of England's Monetary Policy Committee.

Buildings Insurance

What you must have to protect your property against hazards such as fire, flood and subsidence.

Buildings Survey

This is a technical report following an inspection of the property. It will give you a comprehensive account of the condition of the property, describing any structural or other defects.

Capital and Interest Mortgage

Also known as a repayment mortgage. Your monthly payments gradually pay off the money (capital) you've borrowed, and also cover interest on the amount outstanding.

Capped rate

Your interest rate won't go above a certain level - the 'cap' - during the capped rate period. This means that you can enjoy any rate reductions, yet have the comfort of knowing that your rate won't go above the cap.

Cashback

Certain mortgage products offer cashback, which means you get a cash lump sum when you enter into the mortgage to spend on anything you want.

CAT Standard Mortgages

The Government has laid down CAT standards - fair Charges, easy Access and decent Terms - to help people identify mortgages which meet minimum standards. If a mortgage is described as meeting the CAT standards it doesn't mean that it is 'Government approved' or necessarily right for you.

Completion

The day on which a property becomes legally yours.

Conclusion of Missives

The Scottish equivalent of exchanging contracts.

Contents Insurance

Protection for items in your home, including furniture and personal possessions - in case they're stolen, lost or damaged.

Conveyancer

A legal practitioner who deals with the conveyancing of land.

Conveyancing

The legal process involved in buying and selling a property.

Credit scoring

We may use the information you provide to assess the suitability of your application using a technique known as credit scoring. You agree that when considering an application for credit, we may use the information supplied to us to offer additional products.

Daily Interest

With this method of calculating mortgage interest, it is charged on the amount of mortgage outstanding from day to day. This means lenders take into account any changes in the amount you owe on a day-to-day basis.

Deposit

The money you pay on exchange of contracts as part of your initial contribution to the purchase of your home.

Disbursements

All the various costs itemised on your conveyancer's invoice for carrying out your home buying legal work.

Discharge Fee

You have to pay this to some lenders for releasing their hold over a property once you've paid off your loan.

Discounted Rate

This means interest is charged at the variable base rate that applies to the mortgage, less a discount for a set period. This means the rate, and your monthly payment, will vary - up or down - whenever the variable base rate changes, but will remain below the variable base rate during the discounted rate period.

Equity

The difference between the amount you owe on your mortgage and the current value of your property.

Exchange of Contracts

The swapping of contracts between a buyer's conveyancer and a seller's conveyancer. Once you have exchanged contracts you are both legally bound to the transaction.

Feuhold

A form of legal title applicable only in Scotland.

First Charge

Most mortgage lenders lending money to enable someone to buy their home would require a first charge. This means the lender has first call on any funds available from the sale of the property to clear the outstanding mortgage debt.

Fixed Rate

A rate of interest guaranteed not to change over a fixed period of time.

Freehold

A form of legal title to land which means you are the absolute owner of the property and the land it's on.

Ground Rent

The annual fee a leasehold pays a freeholder (usually pretty low). Ground rent generally applies to flats.

Guarantor

Someone who guarantees to repay your mortgage if you can't borrow enough to buy the home you want. Parents, for instance, may act as guarantors for their children when they buy their first home.

Household insurance

A way of referring to both buildings and contents insurance.

Income Multiplier

The way lenders work out how much you can borrow, usually by multiplying your gross annual salary.

Interest-only Mortgage

You only pay interest to your lender throughout the mortgage term and your mortgage balance doesn't reduce. At the same time, you put money into a separate investment which should grow and pay off the mortgage as scheduled. You must make sure you keep premiums up to date on any mortgage investment products.

Land Registry Fee

Your conveyancer pays this on your behalf to register your details in the Land Registry records once you've bought a property or changed your mortgage lender.

Leasehold

This means you own a property for a set number of years. When the lease expires, the property returns to the freeholder. Flats are commonly sold as leasehold.

Local Authority Search

Part of the conveyancing process when you buy a property, carried out by your conveyancer. It gives details of any matters which, from the local council's point of view, affect the property. It reveals any proposed changes to the local area, such as road improvements, and details any planning permission given for the property.

LTV

Loan to value is the proportion of the value or price of the property (whichever is the lower), that you borrow on a mortgage. For example, a £63,000 mortgage on a house valued at £70,000 would mean a LTV of 90%.

Mortgage Deed

A legal document establishing a mortgage on a property.

Mortgage Term

The length of time over which you agree to pay back your mortgage - usually 25 years, but it can be longer or shorter.

Negative Equity

This is when the amount you owe on your mortgage is greater than the value of your property. It particularly becomes a problem if you want to move house.

Overpayments

When you're allowed to pay more than your normal monthly payment, so you can pay off your mortgage earlier if you want and save on interest charges.

Payment Break

Sometimes called payment holiday, you can stop making payments altogether for a limited period agreed with the lender.

Premium

Amount you pay on a regular basis, usually for an insurance policy.

Remortgaging

When you arrange a new mortgage on your home, with a different lender and use the new mortgage to pay off the old one.

Repayment Fees

With some mortgages you have to pay a repayment fee if certain things happen. For example, if you pay off some or all of your mortgage, or you transfer to a different mortgage rate, before the end of the special rate.

Repayment Mortgage

Your monthly payments gradually pay off your mortgage as well as the interest.

Sealing Fee

A fee charged by the lender for sealing your deeds.

Stamp Duty Land Tax

Government tax you have to pay on the purchase price of a property worth over £125,000  

Structural Survey

A specialist report from a structural engineer on the condition of a property.

Sum Assured

The amount paid out on the death of a policy holder.

Total Amount Payable (TAP)

The total cost of repaying a mortgage over the loan period, including the initial money borrowed, interest charges, etc.

Tracker rate

Tracker rates vary in line with changes to the Bank of England base rate. During the tracker rate period, any changes to the Bank of England base rate are passed on to you in full.

Tracker Base Rate

The tracker base rate is directly linked to the Bank of England's repo rate of interest. This is announced from time to time by the Bank of England's Monetary Policy Committee.

Underpayments

You can under pay up to any previous over payments. You can pay less than your normal monthly mortgage payments for a limited period, but you have to build up a fund of overpayments first.

Valuation

Arranged by your lender to find out if the property is worth the amount you've agreed to pay, and therefore suitable to lend a mortgage on.

Variable Base Rate

A variable base rate is the basic rate of interest charged on a mortgage. This may change in reaction to market conditions, so your monthly payments can go up or down.

Testimonials

Homesavers Mortgages and Loans in Bishop Auckland were recommended to me by a friend and from the moment I first contacted your mortgage company I found you to be helpful, straight forward and highly efficient. I also took mortgage advice from the in house mortgage advisor at the...

Dan, Bury (2010) (2013)

Hi Bill, Many thanks for that mortgage advice. I really appreciate the time and effort you put in to get this all put in place so quickly, the level of service was outstanding and certainly far exceeded my expectations! I will definitely be passing your details on to some c...

Puneet, London (2012) (2013)

Considering my personal financial circumstances and the fact that I literally walked in off the street I felt that I recieved a competent efficient service from Homesavers Mortgages and Loans in Bishop Auckland, with a warm welcome each time I called in. The mortgage offered t...

John and Louise, Co Durham (2010) (2015)

Thankyou! Finally we thought this day would never come, Thank you for everything you did for us, it would not of been as easy with out all your help. As first time buyers in Bishop Auckland Co Durham

Chris and Jen, Co Durham 2012 (2013)

Homesavers were reassuringly knowledgeable and friendly, made the process much less stressful. I would definitely recommend them.

Sara, Bedford 2013 (2013)

Thank you for all of your help, could not of understood any of this mortgage stuff without you...thanks for making it simple (mortgages for dummies by T Sharp 2013)

Davey and Fiona, Co Durham (2013)

We found Homesavers Mortgages and Loans in Bishop Auckland to be professional and efficient. The team members we spoke to were approachable and very helpful, despite quite a drawn out mortgage application (due to property issues) Trevor liaised with us and our estate agent to ex...

Vedran Biondic, Hertfordshire 2014 (2014)

Brilliant service once again from Homesavers in Bishop Auckland Co Durham, bearing in mind we have had Easter from application to offer it has been approx 1 week. Heather

Heather , Manchester 2014 (2014)

Very pleased with the service we received! Always got a text,email or call when I was in need of help and advice. Homesavers Mortgages and Loans in Bishop Auckland always make sure to contact us in a few years when our mortgage rate will increase. Leanne and Peter

Leanne and Peter, Merton 2014 (2014)

Fantastic service from start to finish, Trevor was always there to answer questions and there were numerous questions! Would highly recommend Homesavers Mortgages and Loans to friends.

Bryan and Annemarie, Newton Aycliffe 2014 (2014)

We found working with Trevor to be an absolute pleasure, He was always friendly, professional and competent. We have already recommended Homesavers Mortgages and Loans to others and will continue to do so. We were very please with the product Trevor found on our behalf and fel...

Anthony and Kate, East Sussex 2014 (2014)

Having used Homesavers Mortgages and Loans in the past, I had no doubts about doing so again, especially in very difficult personal circumstances. The services offered was highly professional, efficient and reassuring in a time of much financial uncertainty and turmoil. I wil...

Tracy, Spennymoor 2014 (2014)

An excellent service provided by Trevor who guided me through the mortgage process with ease and simplicity.

Christopher , Spennymoor 2014 (2014)

I was very impressed by the personal service that I received and the time the staff members were able to spend with me/talking to me. As a first time buyer of a property and a mortgage I was very grateful for the information I received and for the service that Homesavers Mortg...

Alex, London 2014 (2014)

We had an exceptionally good service from Homesavers Mortgages and Loans. We were very unsure about remortgaging as had never done this before however, were soon put at ease. Any questions we had (and there were quite a few) they were dealt with efficiently making the process...

Danielle, Co Durham 2015 (2015)

Hi Bill We just wanted to thank Homesavers Mortgages and Loans, very much for the efficient and friendly service you provided us while purchasing our new house which is, incidently, wonderful! Your knowledge of the market and assistance with organisation, and the resulting ...

Brett and Claire, Darlington 2015 (2015)

We would like to thank Bill again for all the support with our purchase! top notch service!...we will be recommending Homesavers Mortgages and Loans to everyone we know! Ali and Clare

Clare and Ali, Durham 2015 (2015)

Bill Just a little note to say a massive thank you for all of your hard work and patience! to get us our gorgeous new home! We would not trust anyone else with the job and we really appreciate all that you have done for us. Thank you very much.

Cassandra and Mark, Sunderland 2016 (2016)

I am delighted to say that the re-mortgage with Santander completed today, which I am thrilled about. Thank you so much for your quick and thorough work, it is very much appreciated and I will certainly be back to you for any future requirements, and I will recommend Homesavers M...

Elizabeth, Co Durham 2016 (2016)

Thanks again for arranging this Bill, as always very simple and a pleasure having you represent us.

Darren and Tracy, Kent 2016 (2016)

I Dealt with Trevor who couldn't have been more helpful, His help and advice was invaluable. I would certainly recommend Homesavers Mortgages and Loans to everyone I know!

Peter, Durham 2016 (2016)

I wanted to personally thank Trevor at Homesavers Mortgages and Loans for his help and guidance in this process. You have been absolutely brilliant and talked me through anything I didn't understand with patience, understanding and reassurance that I wasn't completely c...

Louise, West Midlands 2016 (2016)

Bill I just want to thank you for all you at Homesavers Mortgages and Loans have done for us, you have helped us get our very first home together THANK YOU

Cooke, Houghton Le Spring 2016 (2017)

Homesavers Mortgages and Loans came personally recommended and we are so pleased we used there services, Trevor provided us with an excellent service, his guidance and assistance proved invaluable during a tense time. We put our faith in Trevors experience and knowledge and he m...

Ian and Victoria, Wolsingham 2017 (2017)

Excellent service form Homesavers Mortgages and Loans in Bishop Auckland, I was recommended by my brother to see Bill, And I thought the service was second to none. I will remortgage with you in the future and possibly purchase a Buy to Let.

Warren, Bishop Auckland 2017 (2017)

We felt form the outset that Trevor form Homesavers Mortgages and Loans was looking out for our best interest and we trusted that he found us the best deal for our financial situation at this time. Having spoken with another broker a short time before we felt disheartened and ...

Chloe, Wolsingham 2017 (2017)

Thank you so much Bill at Homesavers Mortgages and Loans for helping us with our new home! Also sorry for all the constant texts, questions and phone calls!

Tom and Rebecca, Witton Le Wear 2017 (2017)

We just wanted to say a huge thank you to Bill at Homesavers Mortgages and Loans for being so helpful with my re-mortgage! I keep recommending you to friends, ( If that's ok!) I look forward to hearing from you again in about a year and ten months!

Rachael, London 2017 (2017)

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