Every word they will use, in English

Additional Dwelling Supplement (ADS)

The Scottish surcharge added to Land and Buildings Transaction Tax when you buy a property and already own another one. Scotland’s equivalent of the additional property surcharge in England.

See also Land and Buildings Transaction Tax

Additional property surcharge

Extra Stamp Duty Land Tax charged on top of the normal rates when the property you are buying is not the only one you own. It applies to second homes and to buy to let, and it can also catch you if a purchase and a sale do not complete on the same day.

See also Stamp Duty Land Tax

Adverse credit

A catch-all term lenders use for anything on your credit file that suggests past difficulty — missed payments, defaults, county court judgments, an IVA or a bankruptcy. Different lenders treat the same event very differently, and how long ago it happened usually matters more than what it was.

See also Credit file · Default

Affordability assessment

The lender’s calculation of what you can afford to repay. It takes your income, subtracts your committed spending and an allowance for normal living costs, then tests whether what is left would still cover the payments if rates rose.

See also Stress test · Income multiple

Agreement in Principle

A lender’s indication, based on a soft look at your credit and the figures you have given, of roughly what it would be prepared to lend. Estate agents often ask to see one before they take an offer seriously. It is not a mortgage offer and it is not binding.

See also Decision in Principle · Mortgage offer

APRC

Annual Percentage Rate of Charge. A single figure that assumes you keep the mortgage for its whole term, staying on the lender’s reversion rate after the initial deal ends. It is useful for comparing like with like but it rarely describes what will actually happen, because most people remortgage.

See also Reversion rate

Arrangement fee

The fee a lender charges for setting up a particular mortgage product. It can usually be paid up front or added to the loan — adding it means paying interest on it for the life of the mortgage.

See also Product fee · Booking fee

Arrears

Payments you have missed and not yet made up. Arrears are reported to credit reference agencies and stay on your file for six years.

See also Credit file

Assured shorthold tenancy (AST)

The standard form of private residential tenancy in England and Wales. Most buy to let lenders require the property to be let on one.

See also Buy to let

Base rate

The Bank of England’s official interest rate. Tracker mortgages follow it directly. Fixed rates do not, though the market’s expectation of where it is going does feed into the fixed rates lenders offer.

See also Tracker rate

Booking fee

A smaller, usually non-refundable fee some lenders charge to reserve a product. It is normally paid up front and is not returned if the case falls through.

See also Arrangement fee

Bridging loan

Short-term borrowing secured on property, used to cover a gap — most often buying before selling. It is expensive by design and depends entirely on having a credible way out of it.

Broker fee

A fee some mortgage brokers charge the client for advice. ROS does not charge one — we are paid by the lender or provider instead.

Buildings insurance

Cover for the structure of the property itself. Mortgage lenders require it as a condition of the loan, and on a leasehold flat it is usually arranged by the freeholder and paid for through the service charge.

See also Contents insurance · Leasehold

Buy to let

A mortgage on a property you intend to let rather than live in. The lending is assessed mainly on the rent the property can command rather than on your own income, and most buy to let mortgages are not regulated by the Financial Conduct Authority.

See also Rental stress test · Consumer buy to let

Capital and interest

A repayment mortgage: each monthly payment covers the interest and chips away at the debt, so the balance reaches zero at the end of the term.

See also Interest only

Capital raising

Borrowing more against a property you already own, usually when you remortgage — for home improvements, to consolidate other debts, or to help a family member buy.

See also Further advance

CCJ

A county court judgment. A court order confirming you owe money you have not paid. It sits on your credit file for six years and most lenders want to know whether it has been satisfied and when.

See also Credit file · Adverse credit

Completion

The day the money moves, the seller is paid and the property becomes yours. On a purchase you usually get the keys the same day.

See also Exchange of contracts

Consent to let

Permission from your existing lender to let out a property that is on a residential mortgage — for instance if you move for work but keep the house. It is usually temporary and often comes with a rate change.

See also Buy to let

Consumer buy to let

A buy to let that is regulated, because the landlord did not set out to be a landlord — typically someone who inherited a property or is letting a former home. Most buy to let is not regulated; this is the exception.

See also Buy to let

Contents insurance

Cover for your possessions rather than the building. Not usually a lender requirement, but not having it is how people discover what a burst pipe actually costs.

See also Buildings insurance

Conveyancer

The solicitor or licensed conveyancer who handles the legal side of buying, selling or remortgaging — searches, contracts, the transfer of money and registration at the Land Registry.

See also Searches · Land Registry

Credit file

The record credit reference agencies hold on how you have handled borrowing. Lenders read it as part of every application. You are entitled to see your own, and it is worth doing before you apply rather than after a decline.

See also Adverse credit · Hard search

Critical illness cover

Insurance that pays a lump sum if you are diagnosed with one of the conditions listed in the policy and you survive a set period afterwards. It pays on diagnosis, not on being unable to work, and only the listed conditions count.

See also Income protection · Life cover

Decision in Principle

Another name for an Agreement in Principle. Lenders and brokers use the two terms interchangeably.

See also Agreement in Principle

Default

A lender formally closing an account because it was not paid. It stays on your credit file for six years from the default date, not from the date you settled it.

See also Credit file · Adverse credit

Deferred period

On income protection, the waiting time between being unable to work and the policy starting to pay. A longer deferred period lowers the premium, so it is usually set to start where your sick pay and savings run out.

See also Income protection

Deposit

The part of the purchase price you are not borrowing. A bigger deposit means a lower loan to value, and the rates available tend to improve at each band.

See also Loan to value · Gifted deposit

Disbursements

The costs your conveyancer pays out on your behalf and passes on — searches, Land Registry fees, bank transfer charges. Separate from their own fee.

See also Conveyancer

Discounted variable rate

A mortgage priced at a set discount below the lender’s standard variable rate for an agreed period. Because the lender can move its standard variable rate whenever it likes, the payment can move even though the discount stays the same.

See also Standard variable rate

Early repayment charge (ERC)

A penalty for repaying some or all of the mortgage during the initial deal period, usually a percentage of the balance that steps down each year. It is the single figure most worth knowing before you commit to a fixed rate, because it decides how trapped you are if plans change.

See also Fixed rate · Overpayment

Equity

The share of the property that is yours — the value less what you still owe.

See also Negative equity · Loan to value

Exchange of contracts

The point at which the sale becomes legally binding on both sides. Before exchange either party can walk away; after it, they cannot without penalty.

See also Completion

Expat mortgage

A mortgage for a British national living and earning abroad. A smaller group of lenders will consider it, and the currency your income is paid in matters.

Family income benefit

A form of life cover that pays a regular monthly or annual sum for the rest of the policy term rather than one lump sum. It suits replacing an income, and it is usually cheaper than the equivalent lump sum because the total paid out falls as the term runs down.

See also Life cover

First-time buyer

Someone who has never owned a property anywhere in the world. The definition matters because it controls access to stamp duty relief and to some lender products, and it is stricter than people expect — inheriting a share of a property can be enough to lose it.

See also Stamp Duty Land Tax

Fixed rate

A rate that cannot change for an agreed period, whatever happens to the Bank of England base rate. You are buying certainty, and the price of it is an early repayment charge if you need to get out early.

See also Tracker rate · Early repayment charge (ERC)

Freehold

You own the building and the land it sits on, outright and indefinitely.

See also Leasehold

Further advance

Additional borrowing from your existing lender, on top of the mortgage you already have with them, rather than moving the whole loan elsewhere.

See also Capital raising

Gifted deposit

Money towards a deposit given, not lent, by a family member. The lender will want it confirmed in writing that it is a gift with no expectation of repayment and no stake in the property, and the conveyancer will need to see where it came from.

See also Deposit · Source of funds

Green mortgage

A product priced slightly differently for properties with a strong energy performance rating, or for borrowing to improve one.

Ground rent

A sum a leaseholder pays the freeholder each year. Lenders scrutinise it, because a ground rent that escalates steeply can make a flat difficult to mortgage and therefore difficult to sell.

See also Leasehold · Service charge

Guarantor

Someone who agrees to be responsible for the mortgage payments if the borrower does not make them. Far less common than it was; joint borrower sole proprietor arrangements have largely replaced it.

See also Joint borrower sole proprietor

Hard search

A full credit search, recorded on your file and visible to other lenders. Several in a short period can count against you, which is why an Agreement in Principle is usually done on a soft search first.

See also Credit file · Agreement in Principle

Higher lending charge

A charge some lenders used to apply on high loan to value lending, to insure themselves against loss. Rare now, but you may still see it mentioned in older paperwork.

See also Loan to value

Income multiple

The rough cap on lending expressed as a multiple of income. It is a ceiling rather than an answer — the affordability calculation usually bites first.

See also Affordability assessment

Income protection

Insurance that pays a monthly income if illness or injury stops you working, normally until you recover, retire or the policy ends. Unlike critical illness cover it is not tied to a list of conditions — what matters is whether you can work.

See also Critical illness cover · Deferred period · Own occupation

Indemnity insurance

A one-off policy a conveyancer arranges to cover a specific legal defect — a missing building regulation certificate, say — so the sale can proceed without resolving it.

See also Conveyancer

Interest only

A mortgage where the monthly payment covers the interest and nothing else, so the balance is still there at the end. The lender will want to see a credible plan for repaying it.

See also Capital and interest · Repayment vehicle

Joint borrower sole proprietor

An arrangement where a family member’s income helps the application but they are not an owner of the property. It keeps them off the deeds, which can matter for stamp duty.

See also Guarantor

Joint tenants

A way of owning property jointly where you each own the whole of it together. If one owner passes away their share passes automatically to the other, whatever a will says.

See also Tenants in common

Land and Buildings Transaction Tax (LBTT)

The Scottish equivalent of stamp duty, with its own bands, its own first-time buyer relief and its own surcharge for additional properties.

See also Additional Dwelling Supplement (ADS)

Land Registry

The government register of who owns what land in England and Wales. Your conveyancer registers the purchase and the lender’s charge there after completion.

See also Conveyancer

Land Transaction Tax (LTT)

The Welsh equivalent of stamp duty. Its bands differ from England’s and, notably, there is no first-time buyer relief in Wales.

Leasehold

You own the right to occupy the property for a fixed number of years, not the land. Common for flats. The length of lease remaining matters to lenders, and a short lease can make a property hard to mortgage.

See also Freehold · Ground rent · Service charge

Life cover

Insurance that pays out if you pass away during the policy term. It can be set to a level amount, to fall alongside a repayment mortgage, or to pay a regular income.

See also Family income benefit · Trust

Loan to value (LTV)

The loan as a percentage of the property’s value. Lenders price in bands, so getting under the next one down — often by a very small amount — can change the rate available.

See also Deposit · Equity

Mortgage deed

The document you sign giving the lender its legal charge over the property. It is what makes the mortgage a mortgage rather than a loan.

Mortgage offer

The lender’s formal, binding commitment to lend on stated terms, issued after underwriting and valuation. Offers have an expiry date, which matters on a slow chain or a new build.

See also Underwriting · Valuation

Mortgage term

How long the mortgage runs. A longer term lowers the monthly payment and raises the total interest paid; a shorter one does the reverse.

Negative equity

Owing more than the property is worth. It limits your options at the end of a deal, because moving lender needs equity.

See also Equity

New build warranty

A ten-year structural warranty on a newly built home. Lenders generally require one from a recognised provider.

Offset mortgage

A mortgage linked to a savings account, where the savings balance is set against the mortgage balance and you pay interest only on the difference. The savings earn no interest but are still available.

Overpayment

Paying more than the contractual monthly amount. Most fixed rates allow a percentage of the balance each year without penalty; beyond that an early repayment charge applies.

See also Early repayment charge (ERC)

Own occupation

The strongest definition of incapacity on an income protection policy: it pays if you cannot do your own job, rather than any job you might be suited to. The definition matters more than the premium.

See also Income protection

Portfolio landlord

A landlord with four or more mortgaged buy to let properties. Lenders apply extra checks, usually looking at the whole portfolio rather than just the property being bought.

See also Buy to let

Porting

Taking your existing mortgage product with you when you move, instead of repaying it and paying an early repayment charge. It is not automatic — you have to qualify again, and the timing has to line up.

See also Early repayment charge (ERC)

Product fee

Another name for an arrangement fee.

See also Arrangement fee

Product transfer

Moving to a new deal with your existing lender when the current one ends, without changing lender. Quicker and lighter on paperwork than a remortgage, but it is only one lender’s offer.

See also Remortgage · Reversion rate

Redemption statement

The figure your current lender gives for settling the mortgage in full on a given date, including any early repayment charge and daily interest.

See also Remortgage

Remortgage

Moving your mortgage to a different lender without moving house, usually to get a better rate or to borrow more. There is legal work involved, though lenders often cover it.

See also Product transfer · Capital raising

Rental stress test

The calculation a buy to let lender uses to decide how much it will lend: the expected rent has to cover the mortgage payment by a set margin at an assumed rate, which is usually well above the rate you are actually paying.

See also Buy to let

Repayment vehicle

The plan for clearing an interest only balance at the end of the term — an investment, a pension lump sum, the sale of another property. Lenders check it, and they check it again.

See also Interest only

Retention

Money a lender holds back from the advance until specified work on the property is done. It means you have to fund that work yourself first.

See also Valuation

Reversion rate

The rate the mortgage moves to when the initial deal ends. Usually the lender’s standard variable rate, and usually a good deal higher than the deal you were on.

See also Standard variable rate

Searches

The enquiries your conveyancer makes with the local authority, the water company and the environmental registers to find out what might affect the property — planning, drainage, flooding, contaminated land, mining.

See also Conveyancer

Second charge

A loan secured on a property that already has a mortgage on it. The first lender is paid first if the property is sold, which is why it is called a second charge.

Service charge

What a leaseholder pays towards maintaining the building and common parts. Lenders take it into account in affordability, and a large one changes what you can borrow.

See also Leasehold · Ground rent

Shared ownership

Buying a share of a property from a housing association and paying rent on the rest. The mortgage is on your share only, and the lease sets out how you buy more of it later.

Soft search

A credit check that you can see on your own file but other lenders cannot. Used for Agreements in Principle so that shopping around does not damage your file.

See also Hard search · Agreement in Principle

Source of funds

Evidence of where your deposit came from. Conveyancers and lenders are required to ask, and “it has been in my account for years” is easier to prove than a recent large credit.

See also Gifted deposit · Deposit

Stamp Duty Land Tax (SDLT)

The tax on property purchases in England and Northern Ireland. Charged in bands, with relief for first-time buyers and a surcharge on additional properties.

See also Additional property surcharge · First-time buyer

Standard variable rate (SVR)

The lender’s own default rate, which it can change when it chooses. Mortgages fall onto it automatically when a deal ends, and doing nothing is what makes it expensive.

See also Reversion rate

Stress test

Checking that you could still afford the payments at a rate higher than the one you are taking, so the lending holds up if rates rise.

See also Affordability assessment

Subsidence

Ground movement beneath a building. A history of it affects both mortgageability and the availability and price of buildings insurance.

See also Buildings insurance

Tenants in common

Joint ownership where each owner holds a defined share, which can be unequal and which passes under their will rather than automatically to the other owner. Usually the right choice where the deposits were not equal, or where there are children from an earlier relationship.

See also Joint tenants

Tracker rate

A rate set at a fixed margin above the Bank of England base rate, so the payment moves whenever the base rate does. Some trackers have no early repayment charge, which can matter if you expect to move.

See also Base rate · Fixed rate

Transfer of equity

Adding someone to, or removing someone from, the ownership of a property — on marriage, separation, or bringing a partner in. It is a legal change and usually needs the lender’s agreement.

Trust

A legal arrangement that directs where a life insurance payout goes. Writing a policy in trust generally means the money reaches the right people faster and outside the estate for inheritance tax. It costs nothing to do at the outset.

See also Life cover

Underwriting

The lender’s assessment of the application — the income evidence, the credit file, the property and the fit with its own rules. This is the stage where cases are made or lost.

See also Mortgage offer

Unencumbered

Owned outright, with no mortgage or other charge on it.

See also Equity

Vacant possession

The property is handed over empty — no occupiers, no belongings left behind.

See also Completion

Valuation

The lender’s check that the property is worth what is being paid and is suitable security for the loan. It is for the lender’s benefit, not yours, and it is not a survey.

See also Retention

Waiver of premium

An option on a protection policy under which the insurer pays your premiums for you while you are unable to work, so the cover does not lapse at the worst possible moment.

See also Income protection

Yield

The annual rent as a percentage of the property’s value. Gross yield ignores costs; net yield takes them off, and is the one that tells you anything.

See also Buy to let