Home Mortgage Glossary

UK Mortgage Glossary — 60 Terms Explained

Clear, plain-English definitions of the mortgage and remortgage terms UK homeowners meet most often. Browse A-Z or jump straight to what you need — every entry links to a full explainer with worked examples and regulatory context.

A

What Is APR? A Plain-English Guide for UK Homeowners

APR explained: what annual percentage rate really shows on a UK mortgage, how it differs from the headline rate, and how...

APRC vs APR: What Is the Difference on a UK Mortgage?

APRC vs APR explained: why your UK mortgage illustration shows an APRC figure, how it differs from APR on an unsecured...

Arrangement Fees on UK Mortgages

Arrangement fee explained: typical UK mortgage arrangement fee amounts, whether to add to the loan, and how fees affect...

Agreement in Principle: The Same as a DIP?

Agreement in principle explained: why some UK lenders call their DIP an AIP, what the document shows, and what it takes...

Mortgage Affordability Assessments: What Lenders Actually Check

Affordability assessment for UK mortgages: the income, outgoings and stress tests lenders run, and how to prepare before...

Annual Overpayment Limits: Every Lender's Rules

Annual overpayment limit explained: typical UK lender rules, how the 12-month clock resets, and whether unused allowance...

Amortisation: How Your Balance Falls Over Time

Mortgage amortisation explained: how UK capital repayment schedules work, why early years are interest-heavy, and how...

B

Broker Fees vs Lender Fees: What You Pay and Why

Broker fee vs lender fee explained: typical UK mortgage broker charges, procuration fees, and whether a fee-free broker...

The Bank of England Base Rate and Your Mortgage

Bank of England base rate explained: how the MPC sets it, how it feeds through to UK mortgage rates, and what it means...

C

Capped Rate Mortgages: A Hybrid Option

Capped rate mortgages explained: how the interest rate ceiling works, who they suit, and why they are less common in the...

Cashback Mortgages: How They Work

Cashback mortgages explained: typical UK cashback amounts, the rate trade-off, and whether a cashback deal beats free...

Conveyancing on a Remortgage: What a Solicitor Does

Conveyancing for remortgage: what a UK solicitor does on a switch, typical fees, how long it takes, and the difference...

Completion Statements Explained

Completion statement for a UK remortgage: what each line item means, when you receive it, and how to check for...

Your Credit Score and Your Remortgage

Credit score for a remortgage: what UK lenders see, how Experian, Equifax and TransUnion differ, and practical steps to...

Mortgage Cost per Month: What Really Goes In

Mortgage cost per month explained: how UK monthly payments are calculated, what is not included, and how to build a...

D

Discount Rate Mortgages: How They Work

Discount rate mortgages explained: how the discount off SVR is calculated, when it is cheaper than a tracker, and the...

Decision in Principle Explained

Decision in principle explained: what a UK DIP shows, how the soft search works, and how long a DIP is typically valid...

Debt-to-Income Ratio Explained

Debt-to-income ratio explained: how UK lenders calculate DTI on a remortgage, common cut-offs, and how to improve your...

E

Early Repayment Charges Explained

Early repayment charge explained: typical ERC tapers on UK fixed deals, how to calculate the penalty, and when it still...

The European Standardised Information Sheet (ESIS)

ESIS explained: what the European Standardised Information Sheet shows on a UK mortgage, how it replaced the KFI, and...

Ex-Local Authority Flats and Mortgages

Ex-local authority mortgage explained: which UK lenders lend on former council flats, typical LTV limits, and the...

F

Fixed-Rate Mortgages: How They Work in the UK

Fixed-rate mortgage definition: how 2, 5 and 10-year fixes work in the UK, the trade-offs against trackers, and what to...

Free Legals: What They Cover on a UK Remortgage

Free legals remortgage explained: what the lender's free conveyancing covers, which extras you still pay, and whether to...

Freehold vs Leasehold: How Each Affects Your Mortgage

Freehold vs leasehold mortgage: UK lender rules on lease length, ground rent, service charges, and what to do about...

Flying Freeholds: The Hidden Mortgage Issue

Flying freehold mortgage explained: how UK lenders treat flying freeholds, typical percentages accepted, and the legal...

UK House Price Indices: What They Tell Us

UK house price indices explained: the differences between the Land Registry, Nationwide and Halifax measures, and how to...

G

Guarantor Mortgages and Family Assist Deals

Guarantor mortgage explained: how UK family assist deals work, which lenders offer them, and the legal risks guarantors...

H

Hard Credit Searches: When They Happen and How They Hurt

Hard credit search explained: when UK lenders run a hard footprint, how it affects your score, and how to keep your...

High-Rise Flats: Mortgage Rules Since Grenfell

High-rise flat mortgage explained: the EWS1 form, lender rules on cladding, and which banks still lend on blocks above...

I

Interest-Only Mortgages Explained

Interest-only mortgage definition: how payments are calculated, the repayment vehicles UK lenders accept, and the FCA...

J

Joint Mortgage vs Single Applicant Mortgage

Joint vs single mortgages: how UK lenders assess up to four applicants, joint and several liability, and whether a sole...

K

The Key Facts Illustration: A Legacy Mortgage Document

Key Facts Illustration explained: what the KFI showed, how the ESIS replaced it in 2016, and why some UK lenders still...

L

Loan to Value (LTV): The UK Homeowner's Guide

Loan to value (LTV) explained for UK remortgages: how to calculate LTV, why it affects your mortgage rate, and how...

LTV Bands and How They Affect Your Mortgage Rate

LTV bands explained: the cut-offs UK lenders use, typical 2026 rates by band, and how small equity gains can move your...

Land Registry Fees When You Remortgage

Land Registry fees on a UK remortgage: current 2026 scale fees, who pays, and how the fee appears on your completion...

Loan-to-Income Multiples: How Much Will Lenders Offer?

Loan to income multiples explained: how 4.5x flow limits work in the UK, which lenders go higher, and how joint income...

M

The Mortgage Deed: What You Are Signing

Mortgage deed explained: what the document does, how it is signed and witnessed in the UK, and how it appears on the...

Mortgage Offers: What Yours Really Means

Mortgage offer explained: what the offer letter includes, typical UK validity periods, and the difference between a DIP...

Mortgage in Principle vs Mortgage Offer: The Full Comparison

Mortgage in principle vs offer: the UK differences, what lenders still need to check, and how long each document is...

Mortgage Illustrations: How to Read Yours

Mortgage illustration explained: what each section means, how to compare two UK illustrations side by side, and what to...

Mortgage Term: Choosing the Right Length

Mortgage term explained: how UK lenders set maximum terms by age, the trade-off between term and total cost, and how to...

Mortgage Payment Holidays: The True Cost

Mortgage payment holiday explained: how UK lenders assess eligibility, the interest cost of pausing, and how payment...

Payment Shock: The Jump When Your Fix Ends

Mortgage payment shock explained: why 2026 UK homeowners rolling off sub-2% fixes face big jumps, and how remortgaging...

N

Non-Standard Construction Mortgages

Non-standard construction mortgage explained: which UK lenders accept timber, concrete or thatched homes, and what...

O

Offset Mortgages: How They Work and Who They Suit

Offset mortgages explained: how savings offset mortgage interest, the tax benefits for higher-rate earners, and which UK...

Mortgage Overpayment Allowances Explained

Overpayment allowance explained: how UK lenders set annual overpayment limits, how to calculate 10%, and the interest...

P

Part-and-Part Mortgages: Splitting Capital and Interest-Only

Part-and-part mortgages explained: how UK lenders split capital repayment and interest-only, typical splits accepted,...

Product Fee vs Booking Fee: Mortgage Fees Explained

Product fee vs booking fee: what each charge covers on a UK mortgage, when it is refundable, and whether to pay upfront...

Product Transfer: Definition, Pros, Cons and When to Use One

Product transfer explained: stay with your lender or remortgage? How UK product transfers work, whether you need an...

Porting Your Mortgage: Taking Your Deal With You

Porting a mortgage explained: how to take your UK mortgage deal to a new home, when lenders will allow it, and the...

R

Capital Repayment Mortgages: The Standard UK Option

Repayment mortgage definition: how capital and interest payments work, why the early years are interest-heavy, and how...

Redemption Statements: Closing Your Old Mortgage

Redemption statement explained: how UK lenders calculate the figure to clear your mortgage, validity periods, and why...

S

Standard Variable Rate (SVR) Explained

SVR explained: what a standard variable rate really costs in 2026, how it differs from a tracker, and why UK homeowners...

Mortgage Stress Tests: Could You Afford Higher Rates?

Mortgage stress test explained: how UK lenders model higher interest rates, the current 2026 stress margin, and why...

Soft Credit Searches: What Lenders and Brokers See

Soft credit search explained: how a soft search differs from a hard search, when UK mortgage lenders use it, and why it...

Share of Freehold Flats: Mortgage Considerations

Share of freehold mortgage explained: how UK lenders treat share of freehold flats, lease length rules, and the...

T

Tracker Mortgages Explained

Tracker mortgages explained: how base rate plus margin pricing works, when a tracker beats a fix, and the ERC and collar...

Total Amount Payable on a UK Mortgage

Total amount payable explained: how UK lenders calculate the figure, why fixed-rate assumptions matter, and how to...

Joint Tenants vs Tenants in Common: Ownership Options

Tenancy in common vs joint tenants: how the two UK ownership types differ, the survivorship rule, and which to choose on...

V

Valuation Fees on a Remortgage

Valuation fees explained: typical UK lender valuation costs, free valuation deals, and the difference between a basic...