What is the jargon used in mortgage stuff?
Mortgage in principle: a document from your lender indicating how much they will lend in order for you to purchase a property, it’s not a full loan agreement at this stage.
Mortgage valuation: an assessment undertaken by the mortgage lender to confirm a property’s value.
Mortgage broker: a person or company that arranges a mortgage between you (the borrower) and a mortgage lender.
Standard variable rate (SVR): an interest rate set by your lender. It is usually based on the Bank of England base rate and so can go up or down.
Early repayment charges (ERC): a fee payable to your mortgage lender for overpayment or leaving your deal early.
Fixed rate mortgage: means your interest rate is guaranteed for a fixed period, usually between 2 and 10 years, so your monthly repayments stay the same.
Interest only mortgage: each month you pay the interest owing, but nothing towards the loan itself. At the end of the period you owe the remaining balance in full.
Tracker mortgage: works on a variable rate by ‘tracking’ a base rate, set by the Bank of England. Your repayments may go up or down depending on current interest rates.
Please note that all information provided in this FAQ is for general reference only. It should not be used as a sole or definitive source, nor is it intended to be used for decision making in place of appropriate advice from a qualified legal professional. As such the information is provided as-is and Brevis cannot accept any responsibility or liability for any loss or damage resulting from any errors or ommission in, or any reliance on, information contained in this guide.