The amount of time you are taking the mortgage out for – 25 years, for example.
Insurance that covers your mortgage, usually for a year, if you are unable to work due to accident, sickness or unemployment. It is also known as ASU insurance.
A formal contract between lender and borrower, outlining the legal obligations of the borrower and the rights the lender has if the borrower fails to make a repayment.
See ‘agreement in principle’.
The amount you pay your mortgage lender each month. If you’re on a repayment mortgage (the most common kind), the payment will cover a percentage of your mortgage plus interest.
When a borrower makes a one-off payment to reduce the outstanding balance on their mortgage.
The size of your mortgage as a percentage of the property’s value.
See ‘equity release schemes’.
You own the building but not the land it stands on, and only for a certain period (anything up to 999 years). You may find it hard to get a mortgage if there are fewer than 80 years left on the lease of the property you want to buy.
The official body responsible for maintaining details of property ownership.