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.
Fee free is often used to describe a mortgage where there is no booking, arrangement or valuation fee to pay. Sometimes this can also include free legal work, but this tends to be for a remortgage more often than a purchase.
First Time Buyer
A first time buyer is a person who is buying their first property.
First Mortgage Payment
The first mortgage payment that you make after completion of the mortgage will often be higher than subsequent payments. This is because your normal monthly payment just covers the month is which it is due, but a new mortgage can often start part way through a month. So the first mortgage payment is the monthly amount and interest from the date of completion.
The payment will be confirmed to you in writing after completion and before the payment is due.
Fixed Rate Mortgage
A fixed rate mortgage has an interest rate that is fixed for a set period of time. This means that a borrower knows exactly what their monthly payment is during that period which can be helpful for budgeting.
At the end of the fixed rate period the rate will usually change to a variable rate.
If you own the freehold it means that you own the building and the land that it stands on outright. This means there is no ground rent to pay but you are responsible for maintaining the building. Most houses are sold freehold.
Full Building Survey
A full building survey is the most comprehensive type of valuation and is normally recommended for an older property or if the prospective buyer has concerns about the structural soundness of the property. This type of survey is also the most expensive option that a buyer can go for.
See additional borrowing.