jargon buster : r
Below is a glossary of the terms you may not be sure about now and should understand when taking out a new mortgage. These are not legal definitions but clear everyday descriptions to help you make a more informed choice.
Any examples given are designed solely to simply illustrate the basics of the concept and are not to be taken as anything beyond that.
A lot of mortgage adviser regularly used terminology were banned in October 2004 and replaced by industry standard phrases to help consumers understand things better. The old terms have been included for reference purposes.
No information given here should be taken as advice.
| Rate | The percentage interest rate charged by a lender |
| Rate Cap | See cap |
| Redemption Penalties | See Early Redemption Charge. |
| Redundancy Insurance | See unemployment insurance and accident, sickness and unemployment insurance. |
| Remortgage | A word that still brings out the stake and garlic fear for some people. Simply a change of mortgage product or lender. You can remortgage to obtain lower monthly payments or if you have sufficient equity in your property to raise money for a number of purposes. |
| Remortgage with outstanding discount | Refers to a property that was purchased using the Right to Buy legislation, where the owner wishes to remortgage whilst there is still an outstanding discount remaining. |
| Rent Allowance | A payment received from an employer to be used towards the cost of accommodation |
| Rent Reference | A reference from the landlord or leaseholder depending on the nature of rent paid, outlining the payment history. |
| Repayment Charges | See early repayment charge |
| Repayment Period | See term |
| Residential Investment | See Buy to Let |
| Right to Buy (RTB) | The right of a tenant of a local authority or housing association or MOD or NHS owned property to buy the property. There may be a discount involved depending on the length of the tenancy. |
| RTB | See Right to Buy |
The overall cost for
comparison is
8.2% APR