Maintain your old Siemens Hipath system

Guide to Mortgage Terms

Listed below is a guide to mortgage terms. It is a useful list of definitions of mortgage terms that may or may not be familiar to you.


This stands for Annual Percentage Rate. It takes into account all fees and other costs in connection with the mortgage as well as the lenders interest rate.


This is the actual amount of money that you borrow including any additional fees that have been added.

Base Rate

The UK 's core interest rate which is set by the Bank of England.

Bridging Loan

A temporary loan that enables you to complete the purchase of a new home before completing the sale of your existing property.

Capped Rate

These mortgages have a ceiling above which your payments will not rise.


The point at which the money to buy your new home is released to the seller and ownership is transferred to you.


Legal document which transfers ownership of unregistered freehold land.


The fees your solicitor has to pay such as; stamp duty, land registry, search fees, etc which will be added to your solicitor's bill.

Discounted Variable Rate

For a set period the interest rate charged will be a set percentage less than the standard variable rate.

Early Redemption Charge

If you repay your mortgage in full before a specified date you may be asked to pay an early redemption charge.


The difference between the value of your property and the amount of any outstanding loans secured against it.

Fixed Rate

These mortgages offer a fixed interest rate for a set period of time.


The term used to indicate ownership of property and the land on which it stands.

Interest Only Mortgage

With this type of mortgage, the payments you make each month simply pay the interest on the amount you borrow. At the end of the mortgage term you must pay back the amount you originally borrowed.

Land Registration

This is a record held by HM Land Registry which lists the registered owner of a plot and any legal charge that may be placed on it.


A document, which grants possession of a property for a fixed period of time and sets out the obligations of both landlord and tenant such as; payment of rent and repairs.


Arrangement between a landlord and tenant where the landlord agrees for the tenant to lease the property for a fixed period of time.

Legal Charge

The legal document held by the Land Registry that identifies who has a claim on your property.


A loan you take out to buy your home.

Mortgage Deed

Legal document that you must sign to say that the lender has a legal charge over your property.

Mortgage Payment Protection Insurance

This is an insurance that will cover your mortgage payments should you be unable to work due to an accident, illness or involuntary redundancy.


Person who borrows money to buy a property.


Building society, bank or other company which lends money against the security of a charge over the property purchased.

Offer Letter

This is the official letter that the lender sends to you once all the referencing and valuations have been carried out satisfactorily.


Document that illustrates the cost of your mortgage.

Redemption Penalties

These are the charges that some lenders make if you decide to move your mortgage.


When a borrower fails to pay back their loan in accordance with its terms and conditions, the lender can exercise their legal right to take ownership of the property.

Repayment Mortgage

The payments you make each month will pay off the interest and an element of the capital.

Redemption Figure

This is the amount to be repaid to your existing lender when you move your mortgage.

Sealing Fee

This is the charge made by some lenders when they release the legal charge over your home.


Enquiries made at the Land Registry, the Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to the land.

Stamp Duty

A government tax on the price you pay for your home.

Standard Variable Rate

This is the normal variable rate charged by a lender. This rate can go up or down at any time at the lender's discretion.

Subject to Contract

A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.


Length of time over which your mortgage loan is to be paid.


Legal right to ownership of a property.

Title Deed

Legal document which transfers ownership of registered land.


This is a report produced on behalf of the lender. Lenders use this to decide whether they will offer a mortgage on the property.

Valuation Fee

A fee paid by the borrower for the lender's inspection of the property.

You may freely reprint this article provided the author's biography remains intact:

About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the website.

In The News:

Undersea 'blasts' recorded at same time Russia-Germany gas pipelines damaged
Tue, 27 Sep 2022 09:39:00 +0100
Mysterious leaks in the Nord Stream gas pipe network began with "powerful subsea blasts" and may have resulted from an "act of sabotage".

Qatar 'conscripting civilians and summoning diplomats from abroad' to do World Cup security
Tue, 27 Sep 2022 11:31:00 +0100
Qatar has called up hundreds of civilians - and summoned back diplomats from overseas - for mandatory military service to operate security checkpoints at World Cup stadiums.

Eleven children among 17 killed in Russia school shooting as wounded to be taken to Moscow
Tue, 27 Sep 2022 13:15:00 +0100
More than a dozen children wounded in a school shooting in central Russia are being transferred to Moscow for further treatment.

Shakira to face trial over alleged £13m tax fraud
Tue, 27 Sep 2022 12:16:00 +0100
Shakira is set to go on trial for tax fraud after a Spanish judge approved proceedings against the pop megastar.

Lawyer facing charges in case linked to Kenya's president found dead
Tue, 27 Sep 2022 11:31:00 +0100
A lawyer facing charges at the International Criminal Court (ICC) in a previous case linked to Kenya's recently elected president has been found dead.

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

2nd Mortgage - Better Than Refinancing

You have probably received refinancing offers in the mail or... Read More

Mortgage Clarksville - Find the Best Deal

Searching for a mortgage can sometimes be a hassle. Where... Read More

To Refinance or not to Refinance -- Here is the Answer

I have written many articles on refinancing a fixed rate... Read More

What is a Current Account Mortgage?

Current account mortgages are fairly new to the sector. They... Read More

Fees Paid To Brokers By Mortgage Lenders Are Far Too High

Procuration fees paid by some sub-prime lenders are too high.Fact.There... Read More

Recent Bankruptcy? Its Not Impossible to Obtain a Home Loan

Because the new bankruptcy laws go into effect on October... Read More

Home Mortgages: Does a No-closing-cost Loan Make Sense for You?

I have heard a number of radio ads and have... Read More

Total Cost Of Credit vs Monthly Payments

I read a press release the other day which points... Read More

How To Find A Mortgage With Bad Credit

Shopping online for mortgages ought to be trouble free, even... Read More

What is a Self-Employed Mortgage?

Self-employed mortgages, as the term implies are mortgages designed for... Read More

First Time Buyer Mortgages ? Transforming Homeless into Property Owners

Having just settled in life, you are finding the rentals... Read More

Buying A Home With No Money Down or Bad Credit - PMI Can Make It Easier

Private mortgage insurance is an excellent method for homebuyers who... Read More

Guide to Flexible Mortgages

Outlined below is a useful guide to flexible mortgages. Flexible... Read More

First Time Home Owner Mortgage Loans

First time home owners are sometimes surprised at the complexity... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is... Read More

Home Mortgage Loan Pre-Approval Online ? Keys When Applying For A Mortgage Online

Applying online for a mortgage is very fast and easy.... Read More

Repayment of Loans ? Lessening the Bitterness of the Process

So how have you planned the repayment? Don't tell if... Read More

Cash Out Refinance Mortgage Loans ? Home Equity, 2nd Mortgage or Cash Out Refinance Loan

There are some definite benefits to doing a cash out... Read More

Adjustable Rate Mortgages Offer Alternatives For Home Buyers

When looking for a mortgage to meet your needs, consider... Read More

Thinking About Re-mortaging? Read These Tips First

More and more of use are signing up for limited... Read More

Home Equity Loans 101

A secured home loan differs from an unsecured loan in... Read More

Home Loans ? Lenders Continue to Offer High-Risk Loans

Home prices in the Untied States continue to soar, and... Read More

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will... Read More

California Refinance - Refinancing in California

The real estate market in California is booming. Home values... Read More

What is a Mortgage?

A mortgage is a loan, usually from a bank, finance... Read More