A brief list of some of the most common Mortgage terms. Adverse Credit The term used if the borrower has a poor credit history. This could include previous mortgage or loan arrears, bankruptcy or CCJ's. Other terms used to describe an adverse cred...

Additional Security Fee An Additional Security Fee (Mortgage Indemnity Guarantee policy) is paid to take out an insurance policy designed to indemnify the mortgagee (lender) against loss in the event of default on the mortgage repayment. It is normal...

The average mortgage in the UK is over £100,000, which is usually paid back over a long period of time, up to 25 years. Even with the longest terms, the monthly repayment will be in the hundreds, possibly in the thousands of pounds. Mortgages...

Cash-back Mortgage With cash-back mortgage a lump cash sum is paid to the mortgage holder once the mortgage has been fully repaid. The lump sum will be a percentage (between 1% and 12%) agreed between lender and borrower. This type of mortgage is a...

Interest Only Mortgages When you receive a home loan the mortgage lender charges an interest rate for the lending service. So they provide you with the finances to buy a home and in return you pay them an interest rate. With an interest only mortga...