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APR
Stands for 'Annual Percentage Rate' that helps you compare the cost of different mortgage deals. It takes into account the amount of interest you will pay, the length of the term of the mortgage, and certain other charges such as any arrangement fee.

ARRANGEMENT FEE
Lenders sometimes charge a fee to cover the work involved in setting up your mortgage or for certain mortgage rates.

BANK OF ENGLAND BASE RATE
This is also known as the Bank of England's repo rate. This is announced from time to time by the Bank of England's Monetary Policy Committee.

BUILDINGS INSURANCE
What you must have to protect your property against hazards such as fire, flood and subsidence.

BUILDIINGS SURVEY
This is a technical report following an inspection of the property. It will give you a comprehensive account of the condition of the property, describing any structural or other defects.

CAPITAL AND INTEREST MORTGAGE
Also known as a repayment mortgage. Your monthly payments gradually pay off the money (capital) you've borrowed, and also cover interest on the amount outstanding.

CAPPED RATE
Your interest rate won't go above a certain level - the 'cap' - during the capped rate period. This means that you can enjoy any rate reductions, yet have the comfort of knowing that your rate won't go above the cap.

CASHBACK
Certain mortgage products offer cashback, which means you get a cash lump sum when you enter into the mortgage to spend on anything you want.

CREDIT SCORING
Lenders may use the information you provide to assess the suitability of your application using a technique known as credit scoring. You agree that when considering an application for credit, lenders may use the information supplied to offer additional products.

DEPOSIT
The money you pay on exchange of contracts as part of your initial contribution to the purchase of your home.

DISCHARGE FEE
You have to pay this to some lenders for releasing their hold over a property once you've paid off your loan.

DISCOUNTED RATE
This means interest is charged at the variable base rate that applies to the mortgage, less a discount for a set period. This means the rate, and your monthly payment, will vary - up or down - whenever the variable base rate changes, but will remain below the variable base rate during the discounted rate period.

EQUITY
The difference between the amount you owe on your mortgage and the current value of your property.

EXCHANGE OF CONTRACTS
The swapping of contracts between a buyer's conveyancer and a seller's conveyancer. Once you have exchanged contracts you are both legally bound to the transaction.

FIXED RATE
A rate of interest guaranteed not to change over a fixed period of time.

FREEHOLD
A form of legal title to land which means you are the absolute owner of the property and the land it's on.

HOMEBUYER'S SURVEY & VALUATION REPORT
A property survey that includes a valuation and should reveal any major faults in the property.

INCOME MULTIPLIER
The way lenders work out how much you can borrow, usually by multiplying your gross annual salary. Lenders usually lend up to 3.25 times salary or 2.5 times combined salaries if buying jointly.

INTEREST-ONLY MORTGAGE
You only pay interest to your lender throughout the mortgage term and your mortgage balance doesn't reduce. At the same time, you put money into a separate investment which should grow and pay off the mortgage as scheduled. You must make sure you keep premiums up to date on any mortgage investment products.

LAND REGISTRY FEE
Your conveyancer pays this on your behalf to register your details in the land Registry records once you've bought a property or changed your mortgage lender.

LEASEHOLD
This means you own a property for a set number of years. When the lease expires, the property returns to the freeholder. Flats are commonly sold as leasehold.

LOCAL AUTHORITY SEARCH
Part of the conveyancing process when you buy a property, carried out by your conveyancer. It gives details of any matters which, from the local council's point of view, affect the property. It reveals any proposed changes to the local area, such as road improvements, and details any planning permission given for the property.

LTV
Loan to the value is the proportion of the value or price of the property (whichever is the lower), which you borrow on a mortgage. For example, a £63,000 mortgage on a house valued at £70,000 would mean a LTV of 90%.

MORTGAGE DEED
A legal document establishing mortgage on a property.

NEGATIVE EQUITY
This is when the amount you owe on your mortgage is greater than the value of your property. It particularly becomes a problem if you want to move house.

PAYMENT HOLIDAY
You can stop making mortgage payments altogether for a limited period agreed with the lender.

REMORTGAGING
When you arrange a new mortgage on your home, with a different lender and use the new mortgage to pay off the old one.

REPAYMENT FEES
With some mortgages you have to pay a repayment fee if certain things happen. For example, if you pay off some or all of your mortgage, or you transfer to a different mortgage product.

REPAYMENT MORTGAGE
Your monthly payments gradually pay off your mortgage as well as the interest. See capital and interest mortgage.

STAMP DUTY
UK Government taxes you have to pay on the purchase price of a property worth £60,000 or more.

STRUCTURAL SURVEY
A specialist report from a structural engineer on the condition of a property.

VARIABLE BASE RATE
The variable base rate is the basic rate of interest charged on a mortgage.