Negative Equity - This occurs when the market value of the property falls below the value of the loan secured on it.
New Build Properties - This is a property defined by the fact that it was first occupied less than six months ago.
NHBC Guarantee - With the purchase of a new-build property the National House Building Council provides the purchaser with a ten year guarantee stating that the builder will put right any serious defects.
Payment Protection - This is a very useful insurance against loss of earnings through job loss or illness. In either one of the mentioned cases this policy will provide your monthly mortgage repayments.
Pension Plan - Sometimes the money released from this after the set period is used as payment for the capital from an interest only mortgage. A pension plan is an investment whereby the investor receives a lump sum alongside an income after retirement.
Principal - This is the amount of the loan on which interest is calculated.
Repayment - This is also called redemption and is when the mortgage is paid off.
Remortgage - Another mortgage may be taken out and secured on the same property.
Repayment Mortgage - With this mortgage you agree with the mortgage company to regular monthly payments which includes both interest and part of the capital each month. The intention is to completely pay off the mortgage at the end of the mortgage term.
Standard Variable Mortgage Rate - A particular mortgage deal may be set for any number of years and the repayments may be interest only, based on a tracker system or set at an agreed level of interest. At the end of this contract the loan may change to the Standard Variable Mortgage Rate which could be higher or lower than the rate at which the borrower had been repaying to date. This rate should not be more than 2% above the base rate.
Tie in Term - This is a stipulated period of time that the borrower needs to remain on certain mortgage terms. Failure to do this would result in an Early Repayment Charge.
Title Deeds/Documents - These are the legal documents providing proof of ownership of a property.
Tracker Mortgage - A Tracker Mortgage can also be called a base rate tracker mortgage due to the fact that it changes rates depending on the level of the base interest rate set by the bank of England. A useful mortgage when interest rates are low however borrowers need to be sure they can maintain payments when the interest rates are at a more inflated level too.
Transfer Deed - This form gives details of the transfer of ownership which can then be entered on the Land Registry register.
Valuation - Most mortgage companies will require an inspection of the property being purchased in order to ascertain its acceptability to the lender as security against the loan it is offering the borrower. It is likely that the borrower will have to pay for this valuation inspection.
Vendor - The seller of a property: the person or people from whom one may be buying a new home from.