| Annual Percentage Rate of Charge (APRC) |
The total cost of the loan, expressed as an annual percentage of the total amount of credit. This normally takes into account the interest rate of the loan plus other costs, taking into account the loan amount drawn, repayments and other charges. By taking all of these factors into account, it expresses the overall loan cost in a way which can be more easily compared across different lenders |
| Arrangement Fee |
This is a fee applicable for setting up the mortgage |
| Arrears |
Payments on your mortgage which have not been made on the due date |
| Bank |
Trusted Novus Bank Limited |
| Base Currency |
This is your main currency or the currency that is most relevant to you. For example the currency in which you receive your regular income |
| Capital |
This is the sum of money you borrow. Interest will be charged on the amount of capital from the date of drawdown |
| Collateral |
This is the security offered to the Bank for the mortgage loan and will normally be the property being purchased but can also refer to additional security offered, including other property, cash or investments |
| Completion |
This is the date when the property legally becomes yours and you receive the keys |
| Conveyancing |
The work carried out by the lawyer when properties are bought and sold |
| Drawdown |
This refers to the release of funds from the Bank, normally for the purchase of the property (or equity release) |
| Early Repayment Charge |
This is the cost of early repayment of the loan and, where applicable, will be clearly set out in your facility letter with the Bank |
| Endowment Policy |
A savings plan, normally through an insurance company, designed to pay off the mortgage at a later date. |
| Equity |
The difference in the value of the property and the borrowing against it |
| Facility Letter |
The legal agreement, which sets out the terms and conditions applicable to the loan. |
| Guarantor |
A person who provides a guarantee for your mortgage and agrees to step in and make repayments if you miss repayments. They will also assume liability for part or the entire capital amount owed to the Bank. |
| Interest Rate |
This is the interest rate you will pay on the loan for the duration and is set out in the facility letter. |
| Loan to Value (LTV) |
This is the amount of the borrowing divided by the value of the property and expressed as a percentage, e.g. a loan of GBP 70,000 secured against property valued at GBP 100,000 has a loan to value of 70% |
| Mortgage |
This is the legal charge against your property which provides security to the bank for the amount you borrow |
| Mortgagee |
The lender (us) |
| Mortgagor |
The borrower (you) |
| Mortgage Term |
The amount of time over which you borrow the money |
| Overpayments |
When you decide to pay more than the amount due under the agreement |
| Redemption |
Whenever you pay off the balance of the loan |
| Repayment |
The amount repaid to the bank at the agreed frequency |
| Survey |
The valuation of the property which will need to be undertaken before the loan can be drawn down. Also referred to as the valuation |
