Flexible Mortgage This style of mortgage has advantages over other types of mortgages. The interest rate applied is variable and calculated daily instead of annually which means any capital repayment of the loan will immediately affect the interest charged on the outstanding balance. Regular overpayments or payment holidays are allowable and additional funds can be drawn from the account up to the original mortgage balance. Current Account Facility The mortgage operates through a current account and so your normal cash flow will alter the outstanding amount which may save some interest. Offset Mortgage The mortgage allows the balances of linked savings & current accounts to be offset against the outstanding loan reducing the interest amount.

Other Mortgage Terminology

APR The Annual Percentage Rate is a term defined in consumer credit legislation with the intention of providing a standard basis for comparing different forms of credit with all costs included. Arrangement Fee This is a fee paid to the lender in connection with certain types of mortgages. It is usually paid on completion, but sometimes with the application. Cash Back A payment you receive from the lender when you take out a mortgage. Conveyance This is the deed by which a freehold unregistered title changes hands. If the property is leasehold and unregistered it is called an assignment. If the title is registered the deed is called a transfer. Early Redemption Charges This is a fee charged by a lender if you repay part, or all, of your mortgage or move your mortgage to another lender before the agreed date. High Lending Charge This is a fee levied by the mortgage lender if you borrow more than a given amount. Many mortgage lenders will lend up to 90% of the value of a property without charging this fee. LTV The loan to value refers to the size of the mortgage as a percentage of the value of the property (eg a £90,000 mortgage on a house valued at £100,000 has an LTV of 90%). Mortgage Payment Protection If you cannot work due to an accident or sickness or are made redundant this policy will pay your mortgage for you. Portability A term used to describe a mortgage product that can be transferred between properties when you move house. Re-mortgage This is the act of switching a mortgage to a new lender. Valuation Fee A fee payable to the lender to check what a property is worth and if it is suitable to lend a mortgage on.