A
- Amortisation
- Paying off a loan in regular instalments that cover both interest and part of the amount borrowed.
- APR
- Annual percentage rate: the yearly cost of borrowing, including fees, so you can compare loans fairly.
B
- Base rate
- The interest rate set by the central bank, which lenders use as a starting point.
C
- Credit score
- A number lenders use to judge how likely you are to repay. Paying bills on time is the biggest factor.
E
- Equity
- The part of your home you own outright: its value minus what you still owe on the mortgage.
F
- Fixed rate
- A mortgage rate that stays the same for a set period, usually 2, 5 or 10 years.
L
- Loan to value
- How much you borrow compared with the home's value. A lower LTV usually means a better rate.
O
- Overpayment
- Paying more than your monthly amount to clear the loan faster. Most lenders allow 10% a year.
R
- Remortgage
- Moving your mortgage to a new deal or lender, often when a fixed rate ends.
S
- Stamp duty
- A tax on buying property over a certain price. First-time buyers often pay less.
T
- Tracker rate
- A rate that moves up and down with the base rate by a set margin.
V
- Valuation
- The lender's check of what a property is worth before they agree to lend.
No terms match. Try “rate” or “loan”.