Advance
The mortgage loan

Annual Percentage Rate (APR)
This figure is quoted by lenders and reflects the total cost of the loan. It takes into account any one off fees and any on-going costs as well as the interest rate.

Arrangement Fee
This is a fee paid to the lender for arranging the loan. Some lenders charge arrangement fees, others do not. Others may only charge for certain types of mortgage, for example fixed rate. It is always wise to check whether you will be charged an arrangement fee.

Capped Rate
The interest rate charged on the loan can go up and down as rates change, however they can never go above a maximum (capped) rate.

Cashback
Some lenders offer 'cashback' deals. This is a cash sum that is paid to you when you take out a mortgage. It can be a fixed cash sum or a percentage of the mortgage.

Completion
This is the date when all money has been paid to the person selling the property. The title deeds and keys are then released and you can move in.

Conclusion of Missives
In Scotland, this is the same as exchanging contracts.

Contract
A legal agreement between the buyer and the seller that commits both parties to the purchase and sale. A copy is signed by each party and 'exchanged' at the same time.

Conveyancing
The legal process involved in the buying and selling of property.

Deposit
This is an amount you pay at or before the exchange of contracts. If the sale falls through it may not be refunded.

Deed
These are the legal papers that show ownership of the property and provide information about boundaries and rights of way.

Discount Rate
A guaranteed reduction in the standard variable mortgage rate. This usually lasts for an agreed period.

Early Redemption Charges
A fee may be charged by some lenders if some or all of the mortgage is repaid earlier than agreed or if the loan is moved to another lender. Such charges are usually applied to fixed, discounted or cashback mortgages.

Equity
The equity is the difference between the mortgage and the current value of the property. Negative equity occurs when the amount owed to the lender is more than the current value of the property.

Exchange of Contracts
This is where the buyer's contract and seller's contract are exchanged. It is at this point that the deal becomes legally binding and a completion date is agreed.

Fixed Rate
The interest rate charged on the loan is fixed at a set amount for an agreed period of time.

Fixtures and Fittings
The items that will be left in the property and included in the sale

Land Registration Fee
A fee paid to the Land Registry to transfer ownership records of the property.

Loan To Value (LTV)
Loan to value. This is the size of the mortgage as a percentage of the value of the property (or the price you are paying for it). For example, a £54,000 mortgage on a property value at £60,000 would be a LTV of 90%.

Mortgage
A loan to buy a property where the property is used as security against you paying back the loan.

Mortgagee
The company or organisation which lends you the money under a mortgage.

Mortgage Indemnity Premium / Mortgage Indemnity Guarantee
This is insurance that covers the lender in case the property is repossesed and the lender cannot get back their money. It is payable when the amount borrowed is greater than a certain percentage, usually 75%, of the purchase price. It is a one-off cost that can often be added to the mortgage amount.

Mortgage Interest Relief At Source (MIRAS)
The Government grants tax relief on some of your mortgage interest payments which reduces the costs to you. The amount has been reduced in recent years and is not fixed. Currently, this is 10% of the first £30,000. After April 2000, MIRAS will no longer be available.

Mortgagor
The person taking out the mortgage.

NHBC Certificate
The National Housebuilders Council Certificate is a guarantee against structural fault in new homes for a period of 10 years after construction.

Purchaser
The buyer of the property.

Remortgage
A new mortgage although you are not moving home. For example, to take advantage of more competitive interest rates, or to release some equity in your property to use for other needs e.g. further education for your children.

Search Fees
A fee that is charged for checking with the local authority for details of any plans that may affect the value of the property for example, other planning proposals, and confirmation that the property may be sold in the future.

Stamp Duty
This is a tax paid to the Government if the property you are buying costs more than £60,000.

Title
This is the legal right of ownership to a property and is shown in the Title Deeds.

Valuation Fee
This is paid to the lender. They arrange for the property to be valued before a mortgage is offered.

Variable Rate
The interest rate that the lender charges. It goes up and down which means that the interest payments will change accordingly.

Vendor
The person selling the property.