SVR
Standard Variable Rate of interest.
APR
Annual Percentage Rate - this is meant to
be a way of comparing the cost of credit. It takes into account
most of the up-front and on-going costs involved in taking out a
mortgage.
CCJ
County Court Judgement.
LTV
Loan to Value - the size of the loan expressed as the percentage
of the purchase price or valuation. The LTV of a £60000 loan
on an £80000 home would be 75%.
HIGHER LENDING CHARGE
Mortgage Indemnity Guarantee - an insurance that borrowers have
to pay for when they take high LTV mortgages. The insurance protects
the lender although the borrower is responsible for paying the higher
lending charge.
CAPPED RATE
An interest rate charged for a set period of time, which can go
up and down with the variable rate, but there is a maximum (capped)
interest rate, which it cannot go above.
FIXED RATE
The interest charged on the mortgage is for a set amount for an
agreed period of time.
DISCOUNTED RATE
A guaranteed reduction in the standard variable mortgage rate. This
often lasts for an agreed period.
The interest rate tracks the Bank of England base rate.
LEASEHOLD
This is when you own the property for a set number of years, after
which it goes back to the freeholder. Most flats are leasehold and
although loans may be secured on leasehold properties there is a
condition that there is a minimum number of years left on the lease.
CAPITAL REPAYMENT
A capital repayment is a lump payment of an amount equal to, or
in excess of, six monthly payments.
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