There are a variety of different mortgage terms that you should know about. Here, we will take a closer look at just a few of the ones that you will probably hear the most often.
 
Apr (annual percentage rate): all of the fees and other costs which are associated with the mortgage, as well as the lenders interest rate.

Advance: the actual amount of money that is borrowed, including any additional fees.

Base Rate: the core interest rate of the UK which is set by the Bank of England.

Capped Rate: mortgages which have a limit that payments cannot rise above.

Disbursements: pees which need to be paid by your solicitor, including stamp duty, land registry, search fees, etc. that will be added to your solicitor's bill.

Discounted Variable Rate: during a certain time period, the interest rate charged will be a set percentage less than that of the standard variable rate.

Early Redemption Charge: a charge that you may be asked to pay if you repay your mortgage in full before a specific time.

Equity: the difference between the value of your property and the amount of any loans that have been secured against it.

Fixed Rate: mortgages that offer an interest rate that will not change for a set period of time.

Interest Only Mortgage: The payments that you will make each month will pay only the interest on the amount borrowed. Then, at the end of the mortgage, you have to pay back the amount of money borrowed.

Lease: a document which permits possession of property for a certain time period, and sets out obligations of the landlord and tenant.

Mortgage: a loan which you take out in order to buy your home.

Mortgage Deed: a legal document that says the lender has a legal charge over your property.

Mortgage Payment Protection Insurance: insurance that covers your mortgage payments if factors such as an accident, inability to work, illness, or involuntary redundancy should cause you to be unable to make mortgage payments.

Quotation: a document which states the cost of your mortgage.

Redemption Penalties: charges which are made by some lenders if you decide to move your mortgage.

Repossession: When the lender decides to exercise their legal right to take ownership over a property if a borrower should fail to pay back their loan according to terms and conditions.

Repayment Mortgage: monthly payments made to pay off the interest and element of the capital.

Redemption Figure :amount of money that needs to be repaid to your lender if you decide to move your mortgage.

Sealing Fee: charge which is made by some lenders when they release the legal charge over your home.

Stamp Duty: a government tax that needs to be paid on the price of your home.

Standard Variable Rate: The normal variable rate that a lender charges, which can go up or down during any time.

Term: a length of time for which your mortgage loan needs to be paid in.

Title: a legal right of ownership to a certain property.

Title Deed: a legal document which will transfer ownership of a registered land.

Valuation: a report which is produced by a lender. It is used to decide if they will offer a mortgage on the property.

Valuation Fee: A fee which a borrower needs to pay when the lender inspects the property.