Today's best mortgages
Jargon buster
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Illustration
A quotation prepared for a potential borrower that shows the cost of a mortgage, usually on a monthly basis.
Impaired Credit
The credit rating of a person with a less than perfect record of credit usage, for instance due to arrears on other loans, past CCJs or a past bankruptcy.
Income
The amount of money a person earns.
Income Multiplier
The formula used by lenders to calculate how much a prospective borrower can borrow. Normally this amount will be three or 3.25 times the person's income, or for joint applicants it is typically 2.5 times joint income.
Income Protection
S e e P e r m a n e n t H e a l t h I n s u r a n c e a n d A c c i d e n t , S i c k n e s s a n d U n e m p l o y m e n t I n s u r a n c e .
Income Tax
A government tax that is levied on an individual's earned income.
Index
A published interest rate, such as the Bank of England base rate, or the London Inter Bank Offer Rate (LIBOR), which is used to base the interest rate on a variable rate mortgage.
Index Tracker
A type of mortgage in which the rate of interest charged follows exactly ('tracks') any changes in a published interest rate, for instance the Bank of England base rate.
Inflation
The general rise in prices over time.
Initial Fees
An estimate of the total fees payable for arranging a mortgage, including items such as solicitor's fees, survey costs and reservation charges.
Initial Interest
As well as being the first interest payment on a mortgage, the Initial Interest is also usually higher than subsequent payments as it covers the period between the date of completion and the date when the first payment is due.
Initial Rate
The interest rate that applies between the start and end of any discount period on a mortgage.
Interest Only Mortgage
A type of mortgage in which the borrower only repays the interest on the loan for the duration of its term, and repays the full loan amount at the end of the mortgage period.
Interest Rate Charge Structure
The procedure of offering different mortgage rates depending on factors such as LTV, your income history, and credit rating.
Intermediary
A c o m p a n y s u c h a s A l e x a n d e r H a l l A s s o c i a t e s w h i c h m a t c h e s b o r r o w e r s w i t h l e n d e r s , a s w e l l a s u n d e r t a k i n g a c e r t a i n a m o u n t o f a p p l i c a t i o n p r o c e s s i n g . T y p i c a l l y a n i n t e r m e d i a r y w i l l r e c e i v e a f e e d i r e c t l y f r o m t h e l e n d e r f o r t h e s e s e r v i c e s . S e e a l s o M o r t g a g e B r o k e r .
Introducer
A person who introduces potential borrowers to a lender, insurer or broker.
Investments
Savings that are designed to repay the principal on an interest only mortgage.
ISA (Individual Savings Account)
A tax-free investment product whereby individuals can place shares, cash or life insurance, or a combination of these, up to a specified value.
ISA Mortgage
An interest only mortgage that uses an ISA product to repay the loan.
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