Affordability Assessment
The formal check a lender does to ensure you can afford the mortgage based on your income and outgoings. Required by the FCA.
Jargon Buster
Demystify mortgage and financial terms. All explained in plain English.
No terms match your search.
APR (Annual Percentage Rate)
The true cost of borrowing expressed as a percentage per year, including interest, fees, and other charges. Helps you compare mortgages.
Bad Credit
A history of missed payments, CCJs, defaults, or debt management plans. Many lenders specialize in mortgages for people with bad credit.
Buy-to-Let Mortgage
A mortgage for investors who plan to rent out the property. Usually requires a larger deposit (20-25%) and interest-only options.
CCJ (County Court Judgment)
A court order issued when a creditor wins a case against you for unpaid debts. Can affect your credit score but mortgages are still available.
CeMAP
Certificate in Mortgage Advice and Practice. The qualification required to give mortgage advice in the UK. A sign of expertise.
Completion
The final step of buying a property when funds are transferred, contracts are signed, and you receive the keys.
Decision in Principle
A soft search on your credit file to give you an indicative mortgage offer without affecting your credit score.
Deposit
The upfront payment you make when buying a property, expressed as a percentage of the purchase price. Typically 5-20%.
Equity
The portion of your property that you own outright (the property value minus any outstanding mortgage).
Equity Release
A way for homeowners 55+ to unlock cash from their property without selling it. Options include lifetime mortgages and home reversion plans.
FCA (Financial Conduct Authority)
The UK regulator that oversees financial services and mortgage advisers. Regulated advisers follow strict rules to protect consumers.
Fixed Rate Mortgage
A mortgage where your interest rate stays the same for a set period (usually 2, 3, 5, or 10 years), regardless of market changes.
Lender
The bank or financial institution that provides the mortgage. There are hundreds of lenders in the UK with different criteria.
LTI (Loan-to-Income)
The ratio of your mortgage size to your annual income. Most lenders won't lend more than 4.5x your income.
LTV (Loan-to-Value)
The percentage of the property's value you're borrowing. E.g., a £80,000 mortgage on a £100,000 property = 80% LTV.
Mortgage
A long-term loan to buy property, usually secured against the property itself. Typical terms are 25-35 years.
Mortgage Protection Insurance
Insurance that covers your mortgage payments if you die, become ill, or lose your job. Also called payment protection.
Offset Mortgage
A mortgage linked to savings accounts. Interest is only charged on the difference between the mortgage and savings balance.
Rates (Interest Rates)
The percentage of your mortgage you pay as interest. Fixed rates stay the same; variable rates change.
Remortgage
Switching your mortgage to a different lender or rate, usually to get a better deal or release equity from your property.
Term
The length of time you have to repay the mortgage. Standard terms are 25-35 years, though you can choose shorter or longer.
Tracker Mortgage
A variable mortgage that tracks the Bank of England base rate plus a set margin. Your payments change when the base rate changes.
Variable Rate Mortgage
A mortgage where the interest rate can change (up or down). More risk than fixed rates, but can sometimes be cheaper.
Whole of Market
An adviser able to recommend mortgages from a wide panel of lenders, rather than being restricted to a single lender or a small panel. While this does not necessarily mean access to every single lender, it does mean we can compare a much broader range of products.