This is a variable rate mortgage, where the lenders reduces the normal rate for a set period of time at the start of the mortgage. The reduction is guarrented for a specfied time this will be set out on the completion of the mortgage.

Early Repayment Charge

In relation to mortgages, an Early Repayment charge can sometimes be incurred if part or your entire mortgage is paid off before a pre- agreed date, or moved to another lender.

Endowment Insurance Plan

An Endowment Policy is a life insurance contract designed to pay a lump sum after a specified term, or on its 'maturity', or if the mortgagee dies before the end of the mortgage term. Typical term for an endowment plan is ten, fifteen, twenty, twenty five years when linked to a mortgage or up to a certain age limit. When used in conjunction with an Interest Only Mortgage, it is designed to give a maturity value at the end of the term sufficient to repay the loan.

Endowment Mortgage

Commonly known as an Interest-only-Mortgage it is made up of two parts, namely the Capital which is the money you borrow and the Interest which is the charge for the money borrowed. In this type of Mortgage you pay interest during the term of the mortgage on the amount of money you have borrowed (the Capital). The Capital remains remains the same and must be paid off at the end of the mortgage period. This can be done by a saving plan (ISA), an Endowment Policy or any other saving vehicle, or you may sell the property at the end of the mortgage period.

Equity

This is the excess in the value of a property over the mortgage and other charges held on it.

Exchange of Contracts, what does it mean?

Exchange of Contracts is one of the milestones within the process of buying property. The exchange of Contracts takes place bewteen solicitors acting for the purchaser and the (Vendor), after the preliminary work has been completed, and has proved satisfactory for both parties.

Exit Fees

Some institutionsmay charge an exit fee when you fully repay your mortgage.

Exclusive Mortgage

This type of mortgage is only available to intermediaries through a speific packer, in conjunction with a lender who provides the funding.

Fixed Rate Mortgage

A fixed rate mortgage is where the interest payment ie fixed for an agreed period. This type mortgage provides the security that no matter what happens to interest rates, the monthly payment is fixed for the period specified.