Remortgage

Remortgaging involves transferring your mortgage from one lender to another without moving homes, often to secure a more favorable interest rate or raise additional funds.

Product Transfer

A product transfer mortgage involves switching to a new deal with your current lender when your current agreement ends.

Porting

Porting allows you to transfer your existing mortgage product to a new property when moving. While interest rates and payments remain constant, additional borrowing rates depend on current lending criteria.

Fixed Rate Mortgage

A fixed-rate mortgage maintains a consistent interest rate throughout an initial period, typically several years. As long as payments are made in full and on time, the monthly amount remains unchanged.

Tracker Mortgage

A tracker mortgage is variable, following the Bank of England's base rate for a specified period. Consequently, your repayments can fluctuate based on changes in this rate.

Discounted Rate Mortgage

With a discounted rate mortgage, the interest rate is set below the lender's Standard Variable Mortgage rate (SVR) for a specific duration or the entire mortgage term. The SVR is set by the lender and can vary over time, affecting the amount due monthly.

Offset Mortgage

An offset mortgage connects to a savings account with the lender. Instead of using these savings directly for mortgage payments, they reduce the total interest charged on your mortgage each month. The mortgage repayments may decrease or shorten the term, but savings won't earn interest.

Repayment Mortgage (Capital & Interest)

In a repayment mortgage, monthly payments cover both the interest and the capital borrowed. This ensures the outstanding amount decreases monthly, leading to full repayment by the end of the mortgage term.

Interest Only Mortgage

Interest-only mortgages require monthly payments that only cover the interest, with the principal amount due at the end of the term.

Guarantor Mortgage

In a guarantor mortgage, a third party, often a family member or friend, agrees to cover repayments if the borrower defaults.

Standard Variable Rate (SVR)

The SVR, also known as Standard Mortgage Rate (SMR), is the default interest rate offered by mortgage lenders after the initial deal expires.

Early Repayment Charge (ERC)

An ERC applies if you pay off part or all of your mortgage before the initial deal ends, the cost of which is specified in your mortgage illustration.

Loan to Value (LTV)

LTV is the ratio of your mortgage loan amount to the property's value, expressed as a percentage.

Annual Percentage Rate of Charge (APRC)

The APRC represents the total annual cost of your mortgage, combining all fees, initial and subsequent interest rates.