Are you feeling a little lost in a sea of mortgage terminology? Not to worry, you're certainly not alone. The world of mortgages can be filled with perplexing jargon that can leave even the savviest of homebuyers scratching their heads.
Say goodbye to the jargon-induced haze and say hello to a brighter, more informed mortgage journey. Let's get started!
Base rate
The benchmark interest rate set by the central bank.
Broker
A professional adviser who can help you find a mortgage.
Conveyancer
Handles the legal aspects of purchasing a property.
County Court Judgement (CCJ)
Indicates an inability to repay debt, potentially impacting mortgage applications.
Debt to income ratio
Your monthly debt payments divided by your gross monthly income.
Deeds
Legal documents proving ownership of a property.
Developer
A company or individual who builds or renovates properties.
Early Repayment Charge (ERC)
A charge imposed by the lender if you pay off/overpay your mortgage before it ends.
Energy Performance Certificate (EPC)
Assesses a property’s energy efficiency/environmental impact.
Equity
What percentage of your home you own (your property’s market value versus your outstanding mortgage balance).
Fixed-rate
Interest on the mortgage remains fixed for a specified period.
Interest only
Only the interest on the loan is paid monthly with the outstanding paid at the end of the term.
Loan to Value (LTV)
What you borrow for your mortgage versus how much you pay as a deposit.
Market value
The estimated worth of a property based on current market conditions.
Mortgage illustration
A document that outlines key features and costs of a mortgage.
Mortgage in principle
How much the adviser believes you could borrow before applying for a mortgage.
Mortgage offer
Formal approval and terms from a lender for a specific mortgage application.
Mortgage term
The length of time you have to repay your mortgage.
Negative equity
When the value of your property is less than your outstanding mortgage value.
Remortgage
Switching your existing mortgage to a new lender or product for different terms.
Snagging list
A checklist of issues to be addressed before finalising a new build property purchase.
Stamp duty
Tax paid on a property purchase above a certain price threshold.
Standard Variable Rate (SVR)
The default interest rate set by the lender after your mortgage term ends.
Survey
Inspecting a property’s condition to identify any potential issues/structural problems.
Tracker rate
Interest on the mortgage follows a specific benchmark plus a set percentage.
Variable rate
Interest on the mortgage fluctuate based on market conditions.
Have you seen our calculators?
To explore the world of mortgages a bit more, check out our calculators and handy tools to give you an even better understanding of the mortgage process.
Mortgage repayment calculator
Now that you know how much money you could borrow, you'll probably want to know how much this will cost you each month?
Start your mortgage search today and find out what your monthly repayments could be.
How much can I borrow?
Now that you know how much money you could borrow, you'll probably want to know how much this will cost you each month?
Start your mortgage search today and find out what your monthly repayments could be.
The good news is that you don’t actually need to be an expert in the world of mortgages to get a deal that’s going to work for you. Our advisers are specialists in the field and can help you understand, source, and secure a mortgage that is well suited to your individual needs and circumstances.
Get in touch with us today for an initial no-obligation consultation. (And let’s do away with the jargon).
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Related Articles
Insurance FAQs
Divorce day: FAQs for property post-divorce
Download the Mortgage Advice Bureau app
Our app is a digital mortgage coach designed to help you save up, plan, and track your home buying journey – whether you’re buying your first home, or just fancy a move.
We’ll guide you through step by step to ensure you always know what’s coming up next.
