A lender, mortgage broker or adviser may charge this for arranging a property purchase.

This is found in Scotland and is similar to freehold.

A lender will always use this to secure the main mortgage therefore a lender who has a first legal charge over a property will have the first call on any funds raised from the property sale.

The lending market is very competitive for first time buyers. Mortgage lenders want to be the first to lend to such borrowers in order to keep them as customers for subsequent mortgages. Generally this phrase is used for those borrowers who are buying a property for the first time. Some lenders will also consider someone who has owned a property before but maybe currently renting. First time buyers may be able to access particularly attractive mortgage packages such as fixed rates and discounted rates.

These are mortgages where the interest rates are set for a number of months or years. After the fixed rate period the interest rate will revert to the normal variable mortgage rate. If the mortgage is redeemed during the fixed rate period there are usually redemption penalties.

This refers to mortgages which permit additional funds to be borrowed later on during the mortgage term and/or flexible repayments to be made. Flexible repayment mortgages may allow payment holidays and/or the amount of monthly payments to be varied.

These are mortgages where the loan has been drawn down in another currency which is not Sterling. Such loans require careful consideration as they can be beneficial however the opposite also applies and in some cases borrowers have found the mortgage debt has increased, because of currency movements. Financial advice should be sought if considering such a mortgage.

This refers to land or property which is owned indefinitely. Leasehold property only gives the owner a right to hold for a limited period of time.

This refers to a mortgage where full credit checks and information has been sourced on the borrower.

This describes when a further loan has been granted by the current mortgage lender. This loan is also secured by the first charge on the property. Further advances are generally used for debt consolidation or home improvements.

This is a term that describes a number of new mortgage schemes and is based on the fact that some of these lenders calculate the interest on the mortgage on a daily - rather than annual basis. This offers the lenders the opportunity to be more flexible with the managing of an account than would be the case otherwise. That said, there is a wide range of lenders advertising that they are flexible in outlook. It will range from the top of the scale to lenders who offer bank accounts, credit cards and full management of the finances via one account which includes the mortgage loan, or lenders that allow payment holidays, or an ability to overpay each month to either build up a fund to draw on at a later stage or to help redeem the mortgage early. At the lower end of the scale lenders will allow a partial redemption of a fixed rate - say 10% each year - without penalty.

This is an additional loan made by the existing mortgage lender and secured by the first charge on the property. The Further Advance can be used for a variety of purposes (subject to the lenders approval) such as home improvement, purchase of freehold or personal purposes, such as debt consolidation.