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.
The Land Registry records ownership of all property in England and Wales. Lenders search their records to make sure a person selling or remortgaging a property is listed as the owner.
You only own a leasehold property for a fixed period of time through a legal agreement (a lease) with the landlord (or freeholder).
Leaseholders will often be required to pay a maintenance charge and ground rent. Ownership of the property returns to the landlord when the lease comes to an end.
Lenders will consider the loan amount you have applied for as a percentage of the purchase price or valuation figure (whichever is lower). This is known as the 'Loan to Value' (LTV). The lower the LTV, the larger the deposit and the greater stake you will have in your home. For example, a £75,000 mortgage on a house valued at £100,000 would mean an LTV of 75%.