Death Benefit – This is a payment from a life insurance policy that is made when the insured person dies.

Discounted-Rate Mortgage – This type of mortgage provides the borrower with a set period of payments discounted against the lender’s standard variable rate.

Endowment Mortgage – This type of mortgage sees the borrower making repayments that cover the lender interest costs only whilst at the same time contributing to a separate endowment policy that is designed to mature to the value of the loan capital at the term
of the loan in order to pay the lender the initial loan amount. Endowments are risky as the final amount in the endowment is often not guaranteed.

Equity Release – This is a type of mortgage where the borrower owns a house outright and wishes to use the value of the property as security against a loan.

Fixed-Rate Mortgage – This is a type of mortgage where the interest rate is fixed for a set period of time.

Flexible Loan – A flexible loan allows the borrower to borrow an agreed amount but with a degree of payment flexibility inbuilt. The borrower may then increase or decrease the
loan repayments according to their financial situation.

Flexible Mortgage – A flexible mortgage allows someone to borrow an agreed amount but with a degree of payment flexibility inbuilt. The borrower may then increase, decrease or in some cases temporarily suspend the mortgage repayments according to their financial situation.

High-Lending Fee (Mortgage Indemnity Guarantee) – This is an additional charge normally made by lenders when a borrower wishes to take out a mortgage in excess of 90% of the value of a given property.

Interest – This is the charge that lenders make for borrowing an amount of money.

Interest-Only Mortgage – This is a type of mortgage where the borrower pays interest only on the mortgage but takes out a separate savings scheme in order to pay off the mortgage at the end of the mortgage term.

Lender – A person or organization such as a bank or building society that lends money.

Loan-to-Value (LTV) – This is the amount of mortgage loan required as a percentage of the property value.

Mortgage – A mortgage is a loan designed specifically for property purchases. Mortgage loans are secured against the property value and have varying repayment terms.

Mortgage Payment Protection – A type of insurance designed to meet your monthly mortgage repayments in the event that you are lose your job or are unable to work.

Mortgage Valuation – Mortgage valuations of the property you wish to purchase are carried out by a surveyor on behalf of the mortgage lender and to assess the value of a property and whether it is suitable for mortgaging.