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This stands for the Annual Percentage Rate Charge, and is calculated by taking the total interest cost over the term of the mortgage, plus fees
This is the set up fee for your mortgage, and can include a range of fees such as booking and application fees, which are an important consideration when picking a mortgage deal and can amount to thousands.
Some mortgage deals attract an early repayment charge if you pay some or all of your mortgage off before the end of the term, or transfer to another rate before the end of the product period
The loan to value (LTV) is the ration of the mortgage loan to the value of the property as a percentage.
With a fixed rate mortgage, the interest rate stays the same for a set period of time. This means that for every month during this set period, your mortgage repayments will remain the same, even if there are changes to the Bank of England base rate, or your lenders’ standard variable rate (SVR).The term of a fixed rate mortgage usually lasts between two to five years, but can be much longer. When this period comes to an end, your lender will typically transfer you automatically onto its SVR.
A standard variable rate mortgage (SVR) is a type of variable rate mortgage. The SVR is a lender’s basic rate. When a fixed, tracker or discount mortgage deal comes to an end, you will usually be transferred automatically onto your lender’s SVR.
A tracker mortgage is a type of variable rate mortgage. The interest rate usually tracks the Bank of England base rate at a set margin (for example, 1%) above or below it. Once your tracker deal comes to an end, you’re likely to be automatically transferred on your lender’s standard variable rate (SVR). Typically, this will have a higher rate of interest.
A discount mortgage is a type of variable rate mortgage. The term ‘discount’ is used because the interest rate is set at a certain ‘discount’ below the lender’s standard variable rate (SVR) for a set period of time. For example, if a lender has an SVR of 5% and the discount is 2%, the rate you’ll pay will be 3%. And if the SVR is raised to 6%, your discount rate will also rise – in this case to 4%. When your discount mortgage deal comes to an end, your lender will typically transfer you automatically onto its SVR.
This is a mortgage when you pay the interest as well as a portion of the capital debt, so by the end of the mortgage term you will no longer owe the lender anything provided you keep up repayments.
This mortgage enables the borrower to only pay the interest on the capital sum. However, this means your mortgage balance doesn’t reduce and will still have to be repaid at the end of the term. An acceptable credible repayment strategy will need to be in place.
The length of time you agree to pay off the mortgage in.
The mortgage provider will value your property and make sure it’s adequate security for the amount you wish to borrow. Some lenders might waive this fee on certain mortgage deals. You can also pay for your own property survey to identify all the repairs or maintenance that might be needed.
The lenders inspection only looks at the property value, not necessarily the potential problems and future costs.
In England, Northern Ireland and Wales you’re liable to pay Stamp Duty Land Tax (SDLT) when you buy a residential property, or a piece of land, that costs more than £125,000 (or more than £40,000 for second homes).
If you’re a first-time-buyer in England, Wales or Northern Ireland, you will pay no Stamp Duty on properties worth up to £300,000. This means if you are a first-time-buyer, you will save up to £5,000.
This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.