Mortgage jargon buster

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Part Mortgages

Term used to refer to mortgages that combine different mortgage types. For instance, a combination of a part capital and interest mortgage with an ISA mortgage.

Payment Holiday

Under a flexible mortgage, borrowers are permitted to take a break from their mortgage repayments for a specified period.

Payment Method

The method by which an interest-only mortgage is to be repaid at the end of its term. Typically this will be either an endowment, an ISA, or some other investment product.

Payment Protection Insurance

See Accident, Sickness amp; Redundancy insurance.

Penalties

A specified charge that is levied by the lender under certain circumstances, usually for early repayment.

Pension Mortgage

An interest-only mortgage that uses a pension as a means of paying off the loan at the end of its term.

PEP (Personal Equity Plan)

A tax-free savings plan that has since been replaced with the ISA.

Permanent Health Insurance (PHI)

An insurance policy that pays a monthly income if the policyholder becomes ill and cannot work.

Personal Pension Plan

A pension plan that allows individuals not covered by a company pension plan to save for a pension.

Portable

In relation to a mortgage, this refers to a mortgage that can be transferred between properties when the policyholder moves home.

Previous Lender's Reference

A document from a previous lender that confirms a person's previous repayment record.

Principal

The amount of debt outstanding (excluding interest). The face value of a note or mortgage.

Principal and Interest Mortgage

See Repayment Mortgage

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

We do not charge a fee for residential mortgage advice. We charge an administrative fee for processing each of your mortgage contracts; our fees only apply when you decide to go ahead with an application.

Standard residential mortgages
For standard residential mortgage contracts the typical fee is £499, payable on application. Alternatively, you may pay a fee of 1% of the mortgage loan, payable on application, and any commission received from the lender will be returned to you after completion.

Buy-to-let mortgages
For buy-to-let mortgages a typical fee of 0.5% of the mortgage loan size applies of which £500 is payable on application with the balance payable on completion.

Offshore and commercial mortgages
For offshore and commercial mortgages a typical fee of 1% of the mortgage loan size applies of which £500 is payable on application with the balance payable on completion.

Impaired credit lending
For impaired credit lending the typical fee is 1% of the mortgage loan, payable on application. Alternatively, you may pay a fee of 3.5% of the mortgage loan, payable on completion, and any commission received from the lender will be returned to you after completion.