We know that Mortgages can be difficult to understand and some of the terminologies can be difficult to follow. Our Jargon Buster page will hopefully help to explain some of the terms used with mortgages and what they mean.
Most people will only take out a new mortgage or re-mortgage their property several times in a lifetime so it is easy to forget what everything means. Our mortgage experts at the-insurance-surgery.co.uk are on hand to explain everything to you and make the process as quick and painless as possible.
- Standard Variable Rate (SVR): The rate set by the lender that your mortgage will revert to after the end date of any product
- Loan to Value (LTV): The amount of the mortgage loan as a percentage of the property value.
- Conveyance: The legal process used in mortgage transactions undertaken by your solicitor
- Early Repayment Charge (ERC): The charge payable to the lender if you decide to settle your loan early or move to another lender whilst tied into a deal.
- Annual Percentage Rate (APR): The total cost of borrowing. This is illustrated so you can compare mortgage deals.
- Key Facts Illustration (KFI): A personalised illustration of a mortgage product. Provided in the same format so it is easily comparable.
- Porting: The process of transferring your mortgage to a different property.
- Overpayment: Paying more than your set mortgage payment each month. This reduces the mortgage term
- Fees: These can be:-
- Valuation Fees - The lender will need to get a value of your property. Often lenders offer Standard Valuations, Home-Buyers Reports, and Full Structural Surveys.
- Legal Fees - Conveyancing fees and searches associated with your mortgage application
- Product/Booking Fees - The fee charged by the lender for the mortgage product. This can normally be added to the loan or paid up front.
- Stamp Duty Land Tax (SDLT) - A charge levied by the government on the purchase of land.