Mortgage Advice and Protection - Mortgages
Annual Percentage Rate (APR) - This rate takes into account all the costs, interest charges, arrangement fees etc. Theoretically it allows you to compare mortgages on a like for like basis. However, you need to be careful as different lenders calculate it in different ways.
Capped Rate - The interest rate can go up and down. This is usually referred to as the Standard Variable Rate. However, it won't rise above an agreed rate - the Cap. If the standard variable rate goes above the cap, you'll only pay the capped rate. The capped rate usually lasts for an agreed period.
Conveyance - The legal process involved in buying and selling properties.
Exchange of contracts - The point at which the buyer and seller have legally committed themselves to the sale and purchase of the property.
Fixed Rate - The interest rate is fixed for a set period.
Freehold - This is when you own the property and the land that it is on.
Leasehold - This is when you own the property for a set number of years. After that it goes back to the freeholder. Most flats in England are leasehold.
LTV - Loan to Value. This is the amount of the mortgage expressed as a percentage of the value of the property, or the price you are paying for the property. So a £60,000 mortgage on a £80,000 property would mean an LTV of 75%.
Remortgage - This is when you switch your mortgage from your current lender to another one. You take out a new mortgage to repay your current one. You may be able to get a better rate that saves you money.-------
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