Mortgage Glossary
Mortgagee
The lender of a mortgage.
Mortgagor
The house buyer who takes out a mortgage (also known as the borrower).
Negative equity
Negative equity is when the value of your property is less than your outstanding mortgage.
Offset mortgage
Offset mortgages are flexible mortgages that are often linked to savings or current accounts.
With an offset mortgage, you’re only charged interest on your net mortgage amount after savings or current account balances have been offset against your outstanding mortgage amount.
Portability
Portable mortgage are loans that can be transferred from one property to another when you move.
With a portable mortgage, you stay on the same interest rate you’re being charged, with early repayment charges avoided if they apply.
Rebuild cost
The cost of rebuilding your home.
Redemption of a mortgage
When a mortgage is fully repaid.
Remortgage
This is the process of changing your mortgage for a different one, without moving home.
Repayment mortgage
A repayment mortgage sees you pay off both the capital and interest from your mortgage.
So long as you meet all the payments required by the lender, your mortgage will gradually reduce until it is repaid in full at the end of the mortgage term.
Repayment vehicle
A repayment vehicle refers to an investment, usually an ISA, endowment or pension that is used to pay off an interest-only mortgage at the end of its term.
Please note that Martin & Co does not provide investment advice, and should you require such advice, we recommend that you contact an Independent Financial Adviser. Martin & Co is not responsible for any advice that you receive from a third party.
Repossession
Your property is secured against your mortgage.
So, if you fall behind on your mortgage repayments, your lender could take away, or repossess your property to recover their losses.
Stamp Duty Land Tax
Stamp duty is a government tax charged to buyers on properties above a value of £125,000.
