Capital & Interest is the only guaranteed method of paying off your mortgage. The monthly mortgage payment is part capital and part interest on the amount borrowed, and may also include an element for insurances.  The mortgage debt is guaranteed to be repaid at the end of the term providing you have made all your monthly repayments when due, which is one of the main attractions of this type of mortgage.

Some Lenders allow additional payments to be made on top of the standard monthly repayment.  Where such "Capital Repayments" are made they will reduce the total amount of interest payable.

A mortgage where the capital (amount borrowed) and interest elements of the loan are paid off with each monthly repayment so that the outstanding balance reduces over time to nil at the end of the mortgage term.

A mortgage where a maximum amount of interest is set at the start of the mortgage.  During the capped rate period the interest rate can drop below the capped rate but will never be higher than it.

The expression "Cashback" refers to a type of loan where the Borrower is given a cash lump sum on completion or at commencement of the loan. The interest rate charged is often higher on these loans, in order to compensate for the Lenders loss of income.  This form of loan is used by Lenders as an incentive to promote their products.

A mortgage that complies with exact guidelines laid down by the Government covering the charges, access and terms applied.

Refer to the Consumer Credit Act.

Refer to County Court Judgement.

A charge is the legal right over a property given to a Lender by a Borrower to secure the payment of a mortgage or secured loan.  It enables the Lender to repossess and sell the property in order to recover their money if the Borrower does not keep up the repayments on the loan.

Security or Equity, e.g. on your home.

Any regulated mortgage contracts must include a breakdown on any commission received by the Broker or the Lender; this is found on a document called the Key Facts Illustration.  Commission is a general term describing the income received from an Intermediary for passing business to a Lender.

A person other than a soilcitor who may conduct the conveyancing.

The Council of Mortgage Lenders is a trade body representing Banks, Building Societies and other mortgage Lenders in the UK.

This is a legally binding contract between a Borrower and a Lender detailing the terms and conditions under which money was lent.

Most financial transactions are recorded by Credit Reference Agencies.  A personal history is recorded against a person living at a property and lenders check a person’s credit history when underwriting an application.

The system many Lenders use to help them decide whether they can lend money to you. They'll ask a series of questions about you and your finances and score your answers. Your score will result in you being accepted or declined for a loan.  Also see Autoscore.

A check that the Lender makes with a Credit Reference Agency to look at an applicants credit history and voters role information registered at declared and linked addresses given.

The finance lending industry generally classes’ customers according to their credit history into different status e.g. prime, mid-prime, sub-prime.  Credit status effects underwriting an application.