Are you planning to buy a new home or want to refinance? Applying for a mortgage is a big step and is not that easy. Credas Financial‘s mortgage glossary can help you understand all the mortgage terms and every step of the process.

Loan officers and real estate professionals use various mortgage terms that our glossary of mortgage loan terminology defines. Use the mortgage glossary of Credas Financial for quick look-ups throughout your mortgage loan application process.

Note: As a dedicated accountancy firm in the UK, we prioritize financial well-being. While we do not directly offer mortgage services, we collaborate with trusted professionals. We proudly recommend Credas Financial as our preferred mortgage advisor. Their expertise aligns seamlessly with our commitment to client satisfaction. Please note that our role is solely that of an introducer; we do not provide mortgage services directly. Clients are encouraged to assess Credas Financial’s services independently. We aim to facilitate informed decisions, fostering a comprehensive financial experience for our valued clients.

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What is Mortgage

The following terms are essential to understand mortgages and property dealing in the UK. If you are looking for a property that best suits your interests, call Credas Financial, and they will be happy to help you.

  • Advice

A recommendation or financial consultation by an advisor about a mortgage deal that is suitable for you.

  • Annual Percentage Change of Rate (APRC)

The overall cost of the mortgage. It includes the interest rate and fees.

  • Approved in Principle/ Agreement in Principle

Lenders give a certificate to show the amount being lent to you. An approved principle is not a guarantee statement but can be used when registering with estate agents.

  • Base Rate

The Bank of England sets the interest rate for lending and borrowing purposes.

  • Cashback Mortgage

Cashback mortgages give customers a cash bonus. It is essentially an incentive for lenders to encourage people to take out a mortgage deal with them.

  • Discounted Variable Rate Mortgage

A set percentage deduction for your lender’s standard variable rate over a specific period.

  • Early Repayment Charge

You have to pay an additional amount if you repay your mortgage early, depending on the type of deal you may have.

  • Financial Conduct Authority

An institution that regulates the financial services industry in the UK.

  • Fixed-Rate Mortgages

A fixed interest rate is applied to your mortgage plan over a specific period.

  • Flexibility

Flexible features which may apply to many types of mortgages. These include the facility to overpay or take fewer payments.

  • Higher Lending Charge

A charge levied on the insurance payment protects the lender from financial loss if there is a significant fall in the mortgage payment plan.

  • Interest Only Mortgage

An interest-only mortgage is a type in which the mortgagor (the borrower) must pay only the interest on the loan for a certain period.

  • Joint Mortgage

Mortgage deals with more than one individual involved.

  • Lender’s Arrangement Fee

The lender charges a fee to set up the mortgage plan to cover administration costs.

  • Lender’s Standard Variable Rate

The lender charges the standard interest rate on mortgages without discounts or deals.

  • Loan-to-Value Ratio

The LTV or loan-to-value ratio is the value of the loan you take out minus the property’s value as a whole. It is expressed as a percentage to understand the ratio better.

  • Mortgage Term

The proposed period or tenure in which the mortgage deal lasts.

  • Repayment Mortgage

A repayment mortgage is a home loan where you repay a bit of the capital, the amount you borrowed, and some interest each month.

  • Tracker Mortgage Rate

A mortgage deal in which the interest rate is linked to the base rate, which can quickly go up and down.

  • Valuation Fee

The lender charges a fee for a basic inspection of the property. The valuation report is solely for the lender’s benefit. It is used for the assessment of the property’s security mortgage.

Mortgaging with care
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STEP 2Care and Highest level of Service

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STEP 3Communication is our strength

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STEP 4You are just not a number

We focus on client relationships who are just not a number for us. Our product range is wide to suit their requirements. More importantly, we are always available to them whenever they need us.

Get in Touch

Come and visit our offices or simply send us an email anytime you want. We are open to all suggestions from our clients.
94 Street Lane
9 Sheaf Lane
Coventry Road
B23 6EJ, UK
0113 8870 218
0121 7268 542
[email protected]

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    Leeds: 94 Street Lane, LS8 2AL
    Birmingham: 9 Sheaf Lane, Coventry Road,B26 3EJ
    London: Suite 2462, Unit 3A,34-35 Hatton Garden, EC1N 8DX
    Bradford: 22 Muirhead Drive, BD4 0HJ

    OUR LOCATIONSWhere to find us
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    Leeds: 94 Street Lane, Leeds
    Birmingham: 9 Sheaf Lane, Coventry Road, Birmingham
    London: Suite 2462, Unit 3A,34-35 Hatton Garden,London, EC1N 8DX
    Bradford: 22 Muirhead Drive, Bradford, BD4 0HJ
    OUR LOCATIONSWhere to find us
    Leeds: 0113 8870 218
    Birmingham: 0121 7268 542
    London: 0208 0908 998
    Bradford: 44 7515 029751
    GET IN TOUCHCare Accountancy Social Links
    Taking seamless key performance indicators offline to maximise the long tail.

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    Copyright by CareAccountancy. All rights reserved.

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