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Personal
Mortgages
Mortgage Jargon Buster

Mortgage jargon buster

Taking the mystery out of mortgages

To apply you must be 18+ and resident in Jersey, Guernsey, Gibraltar or the Isle of Man. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

On this page

Mortgage jargon (A-C)

Mortgage jargon (D-F)

Mortgage jargon (G-L)

Mortgage jargon (M-N)

Mortgage jargon (O-R)

Mortgage jargon (S-Z)

Speak to our mortgage team

A-C

APR/APRC

The annual percentage rate of charge (APRC) is the total cost of the loan expressed as an annual percentage. It's provided to help you compare different offers.

Arrears

If you fall behind on your mortgage payments you are "in arrears".

Bank of England Base Rate

A rate of interest set by the Bank of England that lenders' base rates and standard variable rates usually follow.

Broker/Intermediary

An independent adviser who can help you with mortgages and other financial matters.

Capital & interest payment

Your monthly payment covers the interest and also reduces the total balance outstanding.

CHAPS fee

A fee to cover the cost of electronically transferring the mortgage funds to the borrower. Our CHAPS fee is £30.

Conveyancing

The legal process of buying and selling property. This can be done by an Advocate or specialist-licensed conveyancer.

Cost of credit

The difference between the amount you borrow and the amount you’ll end up paying back, taking into account interest and other charges.

D-F

Deposit

The amount you need to pay yourself towards the cost of the property. This varies depending on the product and lender.

Early repayment charge (ERC)

Some mortgages, such as a fixed rate mortgage, charge a fee if you pay back the loan early. This can vary, so check your original letter of approval or terms and conditions for the amount.

Equity

The difference between the current value of your home and the amount outstanding on your mortgage.

Exit fee

This is an administration fee payable to service providers when you fully repay your mortgage.

Fixed rate

A mortgage where the interest rate stays the same for a specific period (e.g two or five years) even if the base rate changes in the meantime.

Freehold

Property ownership where you own both the property and the land it stands on.

G-L

Gazumping

Gazumping occurs when a seller accepts a verbal offer (a promise to purchase) on the property from one potential buyer, but then accepts a higher offer from someone else. It can also refer to the seller raising the asking price or asking for more money at the last minute, after previously verbally agreeing to a lower one. In either case, the original buyer is left in a bad situation, and either has to offer a higher price or lose the purchase.

Joint applications/joint mortgages

This is where you hold property ownership rights equally with another person or persons and apply for a mortgage together.

Leasehold

This is where you own the property but not the land it is built on, for a specific number of years. Flats are usually owned on a leasehold basis. You may find it hard to get a mortgage if there are fewer than 70 years left on the lease of the property you want to buy. Leases are renegotiable, but the shorter the remaining years, the more expensive it will usually be.

Loan to value (LTV)

LTV means Loan to Value. The size of your mortgage as a percentage of the value of your property for instance, if you have £70,000 mortgage and your home is worth £100,000, your LTV is 70%.

M-N

Maturity date

The date the mortgage must be repaid in full, or by which a new agreement needs to be taken out.

Monthly repayment

The amount you pay to your lender for your mortgage each month.

Mortgage offer

This is your guaranteed offer. Once your mortgage is approved you'll get a formal offer setting out the terms and conditions.

Mortgage term

The amount of time you are repaying your mortgage over (e.g. 25 years).

Negative equity

When the value of your home falls below the amount of your mortgage.

O-R

Overpayment

This is when you pay extra, over and above your monthly mortgage payment. Overpayments save you interest and may help you to pay your mortgage off sooner.

Portability

Where an existing mortgage can be transferred between properties when you move house.

Product fee

This is a set-up fee for your mortgage. Sometimes this is based on a % of the amount borrowed.

Rebuild cost

The amount it would cost to rebuild your home if it's destroyed (by fire for instance). This is needed for insurance purposes.

Remortgage

When a person transfers their mortgage from another lender.

S-Z

Standard variable rate (SVR)

SVR means Standard Variable Rate. This is the default mortgage interest rate your lender will charge you after your initial mortgage deal ends if you choose not to take a new fixed or tracker rate deal.

Tracker rate mortgages

A tracker mortgage is a variable rate mortgage, which means that the interest you pay and therefore your monthly mortgage payment can be subject to change. The mortgage interest rate is set at a fixed percentage above the Bank's base rate, which usually tracks the Bank of England (BoE) base rate. The interest rate payable will rise and fall in line with changes to the Bank's base rate.

Valuation

Mortgage lenders require a valuation to prove that the property is worth the amount you want to borrow.

Get in touch with our mortgage team

There's a few ways of getting in touch with us. To start, we'll run through some quick questions to make sure that you get the local help you need.

Continue

Do you already have a mortgage with us?

Please tell us if you already have a NatWest International mortgage.

Please choose an option below to continue

Yes, I'm an existing NatWest International mortgage customer

No, I don't currently have a NatWest International mortgage

What can we help you with today?

Please tell us the nature of your mortgage query.

Please choose an option below to continue

I'm interested in applying for a new mortgage

I want to apply for additional borrowing on my existing mortgage

I'm interested in re-mortgaging

I want to request a mortgage statement, tax certificate or a redemption quotation

I want to discuss something else about my existing mortgage

Where is the property located?

Please tell us the location where you are looking at properties.

Please choose an option below to continue

Jersey

Guernsey

Isle of Man

Gibraltar

England, Scotland or Wales

Request a call back

Select the date and time you want us to call you, enter your contact details and our mortgage team will be in touch.

Taking the mystery out of mortgages

A-C

APR/APRC

Arrears

Bank of England Base Rate

Broker/Intermediary

Capital & interest payment

CHAPS fee

Conveyancing

Cost of credit

D-F

Deposit

Early repayment charge (ERC)

Equity

Exit fee

Fixed rate

Freehold

G-L

Gazumping

Joint applications/joint mortgages

Leasehold

Loan to value (LTV)

M-N

Maturity date

Monthly repayment

Mortgage offer

Mortgage term

Negative equity

O-R

Overpayment

Portability

Product fee

Rebuild cost

Remortgage

S-Z

Standard variable rate (SVR)

Tracker rate mortgages

Valuation

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