glossary of terms

When the value of the property has fallen and is less than the loan secured on it.

Insurance which pays your monthly mortgage payments, usually for a specified period, if you lose your income through sickness, injury or unemployment, business failure.

An investment plan, which can provide a lump sum on, and an income after retirement. A pension plan is sometimes used as a way of providing a lump sum to repay the capital of an interest only mortgage.

The amount of the loan on which interest is calculated.

Repaying one mortgage by taking out another secured on the same property, possibly to take advantage of a particular mortgage product or better interest rate from a different lender.

The amount due to be paid each month on your mortgage.

A mortgage where capital and interest payments are made to repaid the loan over the agreed term.

A process carried out by your solicitor to confirm the title of the property is devoid of any judgement, liens or other conditions, which might affect you obtaining good title to the property.

A report required by the lender into particular defects discovered at the property to be purchased, such as dry or wet rot, damp, etc, before they will agree the mortgage.

A government tax payable on exchange of contracts on properties of a certain value.

A full inspection of the property by a surveyor on behalf of and paid for by the buyer. (This should not be confused with a valuers report) Link to valuers report

The phrase used before exchange of contracts, which allows either party to withdraw without incurring a penalty.