Borrowers with a number of different loans, which are unsecured - (not secured on the property), may find that they can replace these loans with a single loan secured on the property. This can often reduce the borrower?s monthly outgoings by paying only one loan which is secured on the property sometimes over a longer term. As the loan is secured, the interest rate may be considerably lower.

This is the fee charged by a lender when it has released its charge over the property deeds and returned them to the solicitor. It covers the administration carried out.

This is a mortgage where not all of the interest due is paid in the early years. The interest not paid is added to the mortgage. As a result a borrower will end up owing more than the initial mortgage amount and the interest payments will be higher over the rest of the mortgage term. This type of mortgage is usually marketed to professionals whose salaries are expected to increase rapidly in order that they can meet the later interest payments over the rest of the mortgage term.

This is another term for the equity put into a property by borrowers. The phrase may also refer to the amount paid upon exchange of contracts.

These are costs related to the conveyancing of a property. These costs usually encompass photocopying, postage, couriers and legal documentation.

Lenders charge this fee when releasing the charge over a property after a mortgage has been repaid.

This refers to mortgages, which have a facility allowing additional funds to be borrowed later on during the mortgage term. A borrower then knows that they have got the facility to access future funds without having to go through all the normal paperwork.

Moving an outstanding debt, or amount owing, from one credit institution to another.

Usually a depressive slowdown in the rise or fall in prices and accompanied by a decline in economic output and a rise in unemployment.

The lender agrees to give a fixed discount off the normal variable rate for a guaranteed period of time. The discounted rate will move up and down with the normal variable rate but the payment rate will retain the agreed differential below the variable rate for the agreed period of time. If a discounted rate is taken the lender will normally impose early redemption penalties if the mortgage is repaid within the first few years (see Redemption Penalties ).