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.
| TAP |
See total amount payable |
| Tariff |
A document detailing the costs and charges for a particular service or services. |
| Term |
The period of time between the start and finish of the mortgage loan. |
| Term Assurance |
A life insurance policy that provides a lump sum in the event of the death of the policyholder during a specified period. The simplest form of life assurance. |
| Tie – in Period |
The period in which there will be early repayment charges applicable if you decide to change your mortgage. These are normally found with special interest rate products though are found within non-status products as well. They can extend after the special rate has ended. The time which an early repayment charge exists after the special rate has ended is called an overhang. |
| Thatched Roof |
Insurers normally impose special terms for fire insurance on thatched properties. You should check that full fire cover is available from the insurer and that the insurer is acceptable to your lender (not all of them are) before proceeding any further. |
| “The overall cost for comparison is xx.x% APR” |
The highest rate at which two thirds of the customers have received this product or expected to receive or products that have been arranged by the broker or lender. |
| Threshold |
The loan to value above which a charge is payable. Usually used in relation to higher lending charges and when they become payable |
| Timber Framed |
A property whose major structural components are constructed from wood, rather than brick, stone or concrete. Typically a lender will charge more for a mortgage on a timber-framed property, if they will lend at all. This is one of the more difficult types of property to secure a loan or mortgage against. |
| Title Deeds |
The document that confirms the right of possession to an area of land. Most of the land in England and Wales is registered at HM Land Registry. The State therefore guarantees the title. If you take a mortgage on your home then the title deeds will be retained by the lender until such time as you have paid the loan off. With the electronic age upon us many lenders now return the deeds to the owner to keep after scanning them into electronic storage. |
| Title Insurance |
An insurance policy against any loss resulting from defects of title to a specifically described parcel of property. |
| Title Search |
An investigation, carried out by a conveyancer or solicitor, into the history of ownership of a property. The search will check for liens, unpaid claims, restrictions or any other problems that may affect ownership. |
| Top-up Loan |
Form of second mortgage normally used to provide an overall loan in excess of the loan to value allowed by the first charge lender. Normally charged at a higher rate than first charge / mortgage lending and frequently carry high early repayment charges. See Second charges |
| Total Amount Payable |
The total sums payable to the lender over the life of the credit agreement, including all fees and other charges.
E.g. monthly payment of £350 over 25 years (ignoring other fees) is £350 x 12 x 25 = £105,000 |
| Tracker |
A type of mortgage whereby any changes in the rate of interest charged follow exactly ('track') another, specified, interest rate. Typically a tracker mortgage will track the Bank of England base rate. |
| True Self-Cert |
An application where no proof of income whatsoever is required |
Your home may be repossessed if you do not keep up repayments on your mortgage.
The actual rate available will depend on your circumstances. Ask for a personal illustration.
Think carefully before securing other debts against your home.
There will usually be a fee charged when we successfully arrange a mortgage / re-mortgage. The amount will depend on the complexity of your requirements and your personal circumstances, typically the fee charged will be 3% of the mortgage advance (minimum fee £3,000 up to a maximum of £10,000).
