When it comes to mortgages, it can often feel like everyone’s speaking another language. With our handy mortgage glossary, we cut through the jargon and explain all the ‘need to know’ words and phrases that you’re likely to hear when going through your mortgage application.
• Agreement in Principle (AIP)
Also known as a Decision in Principle (DIP), this is a certificate from the lender to say that they agree to lend you a certain amount of money, based on information you’ve shared with them.
• APRC (Annual percentage rate of charge)
APRC is a standard calculation in the mortgage industry and allows mortgages from all lenders to be compared. It is the true cost of the mortgage over the full term set out as a yearly rate, including all fees, terms and interest.
The calculation assumes that you maintain the mortgage for the full term (i.e 25 years).
• Arrangement fee
It’s very likely you’ll be charged an arrangement fee when taking out a mortgage, however our advisers will be able to talk you through the conditions that apply.
• Bank of England Bank Rate
The rate set by the Bank of England, which is reflected in the interest rates charges by lenders.
• Building Survey
An extensive survey, carried out by a qualified surveyor, to spot faults and potential problems in the property you’re buying.
The amount you have borrowed on the mortgage, on which interest will be charged.
When you become the legal owner of the property.
The legal work involved in selling and buying property.
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