A method of working out credit-worthiness of a customer, by estimating how much he or she will have left to make payment on a loan or mortgage after deductions have been made from their salary. Lenders will also consider joint income such as a partner's, dependent children, spending habits etc.

Annual Percentages Rate

This is percentage rate at which the lender calculates the interest the charge the borrower for the mortgage.

Arrangment Fee

The fee charged by a lender to cover the administration involved with arranging the loan.

Basic Valuation Report

This is the basic report required by all Mortgage Lenders as a minimum valuation before the release of mortgage funds for either the purchase of property or a Remortgage.

Booking Fee

A fee charged on some types of mortgages , in order to secure a particular mortgages deal and or to cover administration cost.

Buildings and Central Insurance

This is an insurance policy that covers both the building and its contents.

Buy to let Mortgage

A buy to let Mortgage is a mortgage used to buy a property, and then let out. The money received from renting goes towards the repayment of the mortgage.

Capital and Interest Mortgage

Also known as A Repayment Mortgage, with this type of mortgage each monthly payment goes to both paying the capital (loan) and the interest to the lender so that the loan is gradually repaid over the agreed number of years. At the end of the term the mortgage will have been repaid in full.

Cash Back Mortgage

With this type of mortgage, a cash incentive is provided by some lenders sale promotion technique offering a cash sum after completion of the mortgage.

Completion

This is the last stage in the purchase of a property. The legal documentation is finalised, and the lender sends the mortgage funds to the purchaser’s solicitor. Once the purchaser’s solicitor forwards the funds to the seller’s solicitor the property is now owned by the purchaser.