Arrangement Fee and Booking Fee
Some mortgage products contain an Arrangement Fee. Details of the fees will be shown with the product details.
If a Fee is payable on the product you’ve chosen it can be added to the amount you want to borrow, if you wish, although, if it is, interest will be charged on it for the term of the loan.
If a Fee is added, you will pay interest on this additional amount throughout the life of your mortgage.

Booking Fees are payable when you submit your application and cannot be added to the amount you want to borrow. Not all mortgage products require you to pay a Booking Fee. They are normally only payable on products which are likely to sell out quickly and where it is necessary to reserve (or "book") the funds in advance to avoid disappointment.

Annual Percentage Rate (APR)
The APR shows the true, total cost of borrowing and allows you to compare offers from different lenders. The APR takes into consideration all payments, such as interest payments, repayments of capital, all costs and any fees based on projections for the payments applicable during the term of a mortgage.

Capped Rate Mortgage
Capped Rate mortgages are generally linked to the lender's Standard Variable Rate and sometimes are combined with a discounted rate mortgage. Unlike a discounted rate mortgage where interest rates can rise or fall freely, a capped rate mortgage has a ceiling above which the rate you pay will not rise until an agreed date. This ceiling is known as “the cap”.

If interest rates go above this ceiling, you won't be affected; however if rates fall below the cap, your rate, being variable, will come down. When the capped rate ends, you will pay the lender's Standard Variable Rate which may be higher than the rate you have been paying. If it is higher, your payments will increase.

Discounted Rate Mortgage
A Discounted Rate mortgage guarantees that you’ll pay a set amount below the Standard Variable Rate for the period of the discount. The Standard Variable Rate can go up and down, but the discount amount remains the same during the agreed period. You will need to budget for an increase in your payments when the discount ends and the interest rate changes to the Standard Variable Rate.

Discounts, and the period over which they run, vary from time to time. Generally speaking, the shorter the discount period, the larger the discounted rate will be. So, for example, if you opt for a five–year discount, your payments will be reduced for five years, but not by as much as they would be with a two–year discount.

Fixed Rate Mortgage
A fixed rate means that no matter what happens to interest rates, your mortgage interest rate stays the same until an agreed date. However you should note that your monthly commitment could change as a result of other factors; for example changes in insurance premiums.

When the fixed rate ends, your mortgage will change to a different interest rate. This will usually be either the Standard Variable Rate, or a rate which is linked to the Bank of England Base Rate. Full details of any follow on interest rates can be found in the key features illustration provided by the lender. The follow on interest rate may be higher or lower than the interest rate you've been paying. If the interest rate is higher, your payments will increase.

Interest Only Mortgage
Mortgage repayments on these loans represent only the interest on the amount that you’ve borrowed, although this will be lower than the payments on a repayment mortgage, you will in addition have to make provision to repay the amount you have borrowed at the end of the term.

Loan to Value (LTV)
This refers to the amount you are borrowing as a percentage of the property value.

Repayment Mortgage
Mortgage repayments on these loans represent both interest and a portion of the capital owed each month. This means that your outstanding mortgage balance will reduce year on year.

Stamp Duty Land Tax
You currently have to pay Stamp Duty Land Tax if you are moving home and your new home costs more than £175,000. The amount is calculated on the whole purchase price and rises as the price of your home increases.

Standard Variable Rate (SVR)
This is the standard variable mortgage interest rate that is offered by the lender. It is usually the rate that accounts revert to after a fixed, capped or discount product ends.

Tracker Mortgage
A Tracker mortgage is a variable rate mortgage where the interest rate is linked directly to the Bank of England Base Rate. So whenever the Bank of England Base Rate changes, the rate on the tracker mortgage is guaranteed to change by the same amount, within an agreed period.

Your home may be repossessed if you do not keep up repayments on your mortgage.