Repayment mortgage - a mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest. At the end of the mortgage term the full amount of the debt has been repaid.
Interest only - a mortgage in which the monthly repayments only go towards paying the interest on the amount borrowed. At the end of the mortgage term the original amount of capital borrowed will be outstanding and a separate method of paying this off will be required. This is usually an endowment or other investment product.
Overpayments - This is where you pay more than you need to on your monthly mortgage payments, which could mean you save money in interest over the term of the mortgage or build up a 'reserve' of funds to allow future underpayments or payment holidays (if these are available on your particular mortgage).
Mortgage balance - the total amount of debt that you owe on your mortgage. This consists of any capital amount outstanding and any outstanding further loans, plus any interest which has accrued.
Early Repayment Charge / ERC - An Early Repayment Charge (ERC) is a charge that you may have to pay if you pay off all of your mortgage or make a capital repayment. Usually this charge only applies during the initial deal period of the mortgage.
Porting - moving to a new property and transferring your existing mortgage. Porting is not allowed on Buy to Let mortgages.
Choices - Mortgage Express's Choices facility allows you to overpay to build up a 'reserve' of funds to allow future underpayments, payment holidays or cashback.
Further Advance - an additional loan taken in addition to your original mortgage.
Loan to Value / LTV - The Loan to Value (LTV) is the proportion of the value of the property that you have borrowed on a mortgage. For example, a £90,000 mortgage on a property valued at £100,000 would mean an LTV of 90%.
Part and Part - A mortgage which is set up with part of it on a repayment basis and part of it on an interest -only basis.
Equity - the difference between the value of a property and the amount of the mortgage outstanding against it.
PEP - Personal Equity Plan. An investment plan available from 1987 to 1999 which allowed people to invest in shares of UK companies. On April 6th 2008, PEPs automatically became stocks and shares ISAs.
ISA - Individual Savings Account. A flexible, tax-efficient savings or investment product available since 1999. ISAs are available as stocks and shares ISAs or cash ISAs. See http://www.hmrc.gov.uk/leaflets/isa.htm for more information.
Product Variable Rate - When your fixed or discounted rate period ends your mortgage will normally revert to either a Product Variable Rate or a Standard Variable Rate. A Product Variable Rate will be a set level above the Bank of England Base Rate and will move accordingly. If a Product Variable Rate applies to your mortgage the amount which it is set above the Bank of England Base Rate will be stated in your mortgage offer.
Standard Variable Rate - When your fixed or discounted rate period ends your mortgage will normally revert to either a Product Variable Rate or a Standard Variable Rate. A Standard Variable Rate is determined by a mortgage lender and can vary at any time. It is not directly linked to the Bank of England Base Rate.