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Glossary of Mortgage Terms: A to B
Adverse Credit
A phrase used to describes the situation when you have had problems related to credit in the past. These problems could be missed mortgage payments, CCJs or other issues to do with paying back credit. Also known as Bad Credit or Poor Credit.
Applicant
The person who is applying for a loan. You become known as an Applicant as soon as you have submitted your completed application form.
APR
An Accronym that is short for "Annual Percentage Rate". It is a way of expressing how much you actually pay for a loan each year so that you can compare offers. It takes into account the Interest you pay, how often you pay it and other charges such as Arrangement Fees. The higher the APR the more you pay.
Arrangement Fee
A charge levied by a mortgage lender for setting up a loan.
Arrears
A debt that is has not been paid on time. Usually used to describe missed repayments on a loan.
Bad Credit
A term used to describes the situation when you have had problems related to credit in the past. These problems could be missed mortgage payments, CCJs or other issues to do with paying back a loan. Also known as Adverse Credit or Poor Credit.
Bank of England
The central bank of England and Wales. It is the bank's bank and was set up in 1964. It regulates the UK banking industry and in 1997 the government gave it the responsibility for setting Interest Rates.
Bank of England Base Rate
The Interest Rate that the Bank of England charges banks and building societies when they lend them money.
Black Listed
A term used to describes the situation of having a note on your Credit File saying that you have had serious problems in paying back Credit or bills.
Buildings Insurance
An insurance covering the rebuilding or repair of the structure of a building. It covers your home against disasters such as fire, flood and subsidence. You must have Buildings Insurance in order to get a mortgage because your home is their security against the loan and they want to know that it is protected.
Buy to Let
If you want to buy a property and rent it out (also known as letting it) as an investment it is known as a buy to let. Many people who do this already have a home and a mortgage so a special buy to let mortgage is needed.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.6 % APR. The rate is variable and based on a usual case including fees of £2,495. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.