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

Rate

The annual rate, expressed as a percentage, of interest on a loan.

Rate Cap

A limit (cap) on the amount by which the interest rate payable on a mortgage can increase.

Redemption

The name given to the full payment of a mortgage, at the end of its term.

Redemption Amount

The cost of repaying a mortgage.

Redemption Charges

A fee that is payable by the borrower on redemption (completion of the mortgage term).

Redemption Penalty

A penalty levied by the lender when the borrower pays off a mortgage.

Refinancing

The paying off of one mortgage with the proceeds from a new mortgage, using the original property as security.

Regional Lenders

Lenders that restrict the geographical area in which they will lend.

Remortgaging

The process whereby a new mortgage replaces an old one, and both use the same property as security. See also Refinancing

Repayment Method

The method by which a borrower repays their mortgage, for instance interest-only, or interest and capital.

Repayment Mortgage

A mortgage in which monthly charges are used to repay the interest and to reduce the outstanding capital.

Repayment Period

The term, or number of years, over which the borrower must repay the mortgage.

Repossession

The legal procedure by which a defaulting borrower is deprived of their interest in the mortgaged property, typically involving the forced sale of the property at a public auction.

Retention

The ability of a lender to hold back (retain) part of a mortgage until certain conditions are met.

Right to Buy

Many local authorities offer tenants the right to buy the public housing they occupy, usually at a discount and usually the scheme will depend on the length of the existing tenancy.

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.