APR
This term stands for Annual Percentage Rate, which is the amount of interest to be paid on top of the loan amount. Many different things affect the APR, including the Mortgage loan length in years, the lender and the amount of the mortgage.

Arrangement Fee
This is the fee lenders sometimes charge to setup the mortgage. This fee is often added on top of the mortgage.

Buildings Insurance
This is the insurance which must be taken out on a property to have a mortgage. This is to cover the cost of damage from events such as floods, fire and storms.

Buildings Survey
This is a report generated by a Charted Surveyor which details the condition of the property, describing structural and other defects.

Capital and Interest Mortgage
This is a repayment mortgage, where your monthly payments gradually pay the mortgage off, and also the interest.

Capped Rate
A mortgage with a capped rate of interest is one where the interest rate won't go above a certain level, the 'capped' rate. The advantage of this is that you can get the benefits of interest rate drops, but not be hit by any rises above the 'capped' level.

Cash back
Some mortgage products offer cash back when you take out the mortgage, to spend on whatever you want, to be paid off along with your mortgage.

Contents Insurance
This is an Insurance policy covering personal belongings within a property and its outbuildings for damage and theft.

Conveyancer
This person is responsible for all documentation regarding the sale and purchasing of properties.

Conveyancing
The name given for the work carried out by a Conveyancer, the legal process of buying and selling properties.

Daily Interest
This is where the mortgage is calculated daily on your mortgage, meaning the outstanding/remaining balance changes every day.

Date of Entry
The date when money is transferred for the property and the buyer receives the keys.

Deposit
This is the money paid on top of the mortgage to secure the property. A larger deposit means a less amount to be borrowed to purchase the property, and usually means the monthly payments would be less and or paid off over a shorter period.

Discounted Rate
This is where the interest on the mortgage is discounted below the Bank of England's set rate but a certain amount for a fixed amount of time. Eg, a Discounted rate of 2%, for the first year is a common mortgage product offered to first time buyers.

Equity
This is the difference between the amount outstanding on your mortgage and the value of the property. Negative equity is when the property is valued less than the outstanding balance, this is not a good situation to be in.

Estate Agent
This is someone who acts on behalf of the seller selling the property. They often arrange viewings for the seller, and work closely with the buyer.

Fixed Rate
This is a fixed rate of interest guaranteed not to change for a fixed amount of time.

Guarantor
This is someone who guarantees to pay the mortgage if the borrower can't or won't for any reason. Guarantees are usually used when the borrower isn't earning enough to buy the property they want. For example, parents often act as guarantors for their children buying their first property.

Interest Only Mortgage
In an interest only mortgage the borrow only pays back the interest, and at the end of the mortgage term (usually 25 years) they have to pay back a lump sum of the purchase price. Often this is done through a separate investment.

ISA
Individual Savings Account. This is often used to pay back the lump sum at the end of an interest only mortgage.

Land Registry Fee
The conveyancer pays this on the buyers behalf to register the details of the property in the property register.

Life Insurance
This is a form of assurance that if you die, the policy will pay out a lump sum on death or diagnosis of critical illness of the policy holder, usually to pay off the outstanding balance of a mortgage.

Mortgage Term
The length of time you agree to pay back the mortgage over. Usually around 25 years, but can be longer or shorter by request, or according to the age of the borrower.

Negative Equity
This is when the outstanding balance on the mortgage is less than the property value.

Overpayments
When you're allowed to make extra payments each month ontop of the standard payments to help pay off the remaining balance quicker, and save on interest charges.

Payment Holiday
When the borrower can take a break from making mortgage payments, often useful during periods of unemployment or when planning events using up a lot of financial resources, eg, building an extension or fitting new windows.

Pension Mortgage
An interest only mortgage, where a personal pension plan is used to pay off the outstanding mortgage balance on retirement, and also provide a pension.

Remortgaging
When you arrange a new mortgage on your existing home.

Stamp Duty
Government tax that must be paid based on the purchase price of a property.

Title Deeds
The legal documents showing ownership of property and land.

Tracker Rate
Tracker rates vary inline with the Base Rate set by the Bank Of England.

Valuation
The value of the property, used to see if the property is worth the amount that is away to be paid for it.

Variable Base Rate
This is the basic rate of interest charged on a mortgage. This varies, so repayments can vary both up and down.

Vendor
Another term for the seller of a property.

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