Mortgage Terms

Accident, Sickness and Unemployment Insurance (ASU):
In the event of an accident, sickness or involuntary unemployment befalling a borrower, this insurance covers mortgage repayments.
Annual Percentage Rate (APR):
The APR is a rate calculated using a generic formula applicable to all Lenders, which includes all the costs associated with a mortgage.
Base Rate:
Every month the Monetary Policy Committee sets the Bank of England Base Rate, to which all mortgage rates are linked either directly, as Tracker mortgages, or indirectly, in all other cases.

Buildings and Contents Insurance:
This is insurance that covers damage to the mortgaged property or its contents in a variety of specified ways. It is mandatory for all Lenders, and if the Lender's own insurance is not taken they frequently charge an administration fees.

This is when a transfer of property has legally taken place, after all legal documentation has been completed and signed,  and funds have been transferred from the buyer's solicitor to the seller's solicitor.
A repayment method that works with Interest only mortgages.

Fixed rate mortgage:
This is a mortgage that is charged at a fixed rate within a set period
Flexible mortgage:
This is a type of mortgage offers more flexibility than traditional mortgages in terms of amounts paid, and periods of time that repayment are made.

When a prospective purchaser has an offer for a property accepted, but accepts another potential buyer who puts in a higher offer for the same property.

Mortgage Payment Protection Insurance (MPPI):
See Accident, Sickness and Unemployment Insurance (ASU) .

Stamp Duty:
This is a government tax charged on properties with a purchase price in excess of £125,000.
Standard Variable Rate (SVR):
This is a variable rate determined entirely at the lender's discretion. Unless linked to Libor or the Bank of England Base Rate , the standard variable rate is the reverting rate at the end of any special offer period.
Term Assurance or Life Policy: This covers  any outstanding  mortgage debt in the event of the insured person's death.
Tracker mortgage: This is a variable mortgage that is fixed either slightly above or below the Bank of England's Base Lending Rate.



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