Welcome to our Mortgage Glossary. Here you will find definitions for more commonly used mortgage terms, making the jargon clearer. If you're unsure of any words or phrases, simply use the guide below.
A deposit is the amount of money that you have to put towards a new property. This can come in the form of personal savings, a gift from a family member or elsewhere. Normally, the larger your deposit, relative to the value of the property you are looking to purchase, the lower the mortgage rate will be.
Decision in Principle (DIP)
See agreement in principle (AIP).
With a discounted rate mortgage, the lender's standard variable mortgage interest rate is discounted for a specified period of time. The discounted rate could be a set amount for a specific term or be 'stepped'. Details of the discount will show in the mortgage literature, your Key Facts Illustration (KFI) and your mortgage offer.