Glossary
Financial language made simple
Mortgage and protection terms can sound complicated — but they don’t have to feel overwhelming.
You don’t need to memorise jargon or pretend you understand everything straight away. Our role is to explain things clearly, answer your questions honestly, and guide you at a pace that feels right for you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Why This Matters
Understanding key terms helps you make confident decisions — but confidence comes from clarity, not complexity.
When language is confusing, decisions feel rushed or uncertain. By breaking things down into plain English, we help you focus on what actually matters: choosing the right option for your home, your finances, and your future.
A
Agreement in Principle (AIP)
A document from a lender confirming how much they may be willing to lend, based on initial checks.
Annual Percentage Rate (APR)
The total cost of borrowing expressed as a yearly percentage, including interest and fees.
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Base Rate
The interest rate set by the Bank of England that influences lender rates.
Broker Fee
A fee charged by a mortgage broker for arranging a mortgage.
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Completion
The final stage of a property purchase when funds are transferred and ownership changes.
Conveyancing
The legal process of transferring property ownership.
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Deposit
The upfront amount paid towards the purchase of a property.
Decision in Principle (DIP)
Another term for Agreement in Principle.
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Early Repayment Charge (ERC)
A penalty charged if you repay your mortgage before the end of a fixed or discounted period.
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Fixed Rate Mortgage
A mortgage where the interest rate is fixed for a set period.
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Gazumping
When a seller accepts a higher offer after already agreeing to one.
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Help to Buy
A government scheme designed to help buyers purchase a home with a smaller deposit.
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Interest Rate
The percentage charged by a lender for borrowing money.
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Loan to Value (LTV)
The ratio between the loan amount and the property value.
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Mortgage Term
The length of time over which the mortgage is repaid.
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Offer
A formal mortgage offer issued by a lender.
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Product Fee
A fee charged by lenders for specific mortgage products.
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Remortgage
Switching your mortgage to a new deal, either with the same or a different lender.
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Stamp Duty
A tax paid when purchasing property over a certain value.
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Tracker Mortgage
A mortgage that tracks the Bank of England base rate.
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Underwriting
The process lenders use to assess risk before approving a mortgage.
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