Bb

Buildings and Contents Insurance

Insurance to cover the cost of rebuilding or repairing structural damage to a property together with cover against theft or damage of household contents/belongings. Cover for Buildings and Contents can be arranged separately or as a joint policy.

Buy to Let Mortgage

This is a mortgage for a property that will be let by the borrower. The amount of mortgage available is calculated primarily on rental income rather than personal income.

Cc

Cashback Mortgage

A mortgage where the lender provides a cash lump sum to spend on anything and based on either a percentage of the loan or a flat figure. Paid on completion of the mortgage.

Dd

Discount Mortgage

This is a mortgage where the Society’s Standard Variable Rate or Tracker Rate are reduced by a set amount for a specified period of time (normally the initial part of the mortgage term). The prevailing rates will be clearly shown on the KFI and Offer of Loan.

Ee

Early Repayment Charge (ERC)

A charge payable on some mortgage products in the event of full or partial redemption of the loan during the ERC period (eg. the term of a discounted or fixed rate). The amount is usually based on a percentage of the total mortgage.

Ff

First Time Buyer

A person who has not previously held a mortgage or had any ownership interest in his/her primary residence or any other property.

Fixed Rate Mortgage

A mortgage where the interest rate if fixed for a specified period of time. The interest rate will normally revert to the prevailing Standard Variable Rate at the end of the fixed period.

Ii

Interest Only Mortgages

The monthly payments will only cover the interest and will not cover any of the capital borrowed. A lump sum must be built up in a separate savings scheme in order to repay the capital at the end of the term.

Kk

Key Facts Illustration (KFI)

This document sets out details of the mortgage a customer has expressed interest in. All lenders will provide KFI’s in similar formats to assist comparison of different costs and features of each product.

Ll

Loan to Value (LTV)

The amount of mortgage required expressed as a percentage of the value or purchase price. For example a £75000 mortgage raised on a house valued at £100000 would be a 75% LTV.

Ff

Mortgage payment Protection Insurance (MPPI)

Insurance to cover mortgage repayments in the event of the borrower being unable to work due to accident, sickness or involuntary unemployment. The cover will cease when the borrower returns to work up to a maximum of 12 consecutive monthly payments.

Pp

Personal Loans

A secured or unsecured loan for personal use such as car purchase, holiday, home improvements, etc…

Rr

Redemption

Repayment of the mortgage in full at which time the Society’s charge on the property will be removed.

Re-mortgage

This is where you take out a new mortgage on your property with a new lender without moving home. Your previous lender is repaid with fund from your new mortgage.

Repayment Mortgage

A mortgage where the monthly payment will cover the interest on the loan and gradually pay off the capital borrowed. By the end of the term if all the required payments have been made you will have repaid the whole loan.

Ss

Standard Variable Rate (SVR)

The normal interest rate on which the Society calculates mortgage repayments. Most discounted products are based on this rate of interest.

Tt

Tracker Mortgage

Mortgages where the interest rate is usually based on a set amount above the Bank of England Base Rate. Any changes in the Bank Base Rate will directly effect the interest rate on this type of mortgage.

Vv

Valuation

Arranged by the lender to ensure that the value of the property is adequate for the amount of mortgage requested and that the property is suitable security for lending purposes.