Advice

A recommendation about the most suitable mortgage for you made by an adviser who is regulated by the FSA. Finance Tracker is not regulated by the FSA and does not give advice. The information obtained in this website is for informational purposes only. Always take legal advice before entering into a financial agreement.

A statement from your mortgage lender, sent every year, showing among other things what you've paid and what you still owe.

A certificate which some lenders will give you that shows the amount they will probably be prepared to lend you. This is not a guarantee, but can be helpful when signing up with estate agents.

Annual Percentage Rate. This shows the overall cost of a loan, taking into account the term, interest rate and other costs.

A firm that has permission from the FSA to carry out regulated activities.

A loan you take out to buy a property which you intend to rent to tenants.

The amount you borrow to help buy your home.

A mortgage that has a maximum limit on the interest rate you'll have to pay during a special deal period.

A mortgage that comes with a cash sum (often a percentage of the amount you're borrowing).

Use our impartial tables to compare mortgages from a wide range of lenders.

A mortgage with a minimum interest rate you'll pay during a deal period.

The system your card issuer uses to decide whether to provide you with a card, and to set your credit limit. Credit scoring works by awarding points to the information you provide on your application form and to the information recorded on your credit report (held by a credit reference agency). See Credit scoring for more information.

The amount of money that you're putting into buying a home (not including the mortgage money you're borrowing).

Payments made on a regular basis (for example, for your gas and electricity) taken directly from your account on an agreed date. You arrange this with your supplier and give them your bank details.

This has a discounted variable rate of interest for a set period, after which the rate will increase.

A charge you may have to pay if you break off a mortgage deal - by paying it back early and/or moving to another lender.

An interest rate that is fixed (ie it doesn't move up or down) for a set period of time.

The Financial Services Authority - the UK's financial services regulator.

If you spend more money than you have in your account, you will go overdrawn (also called being in debit or having a debit balance). Normally, you will be charged interest on the amount you are overdrawn. There could be a monthly or quarterly fee and there may be other charges too.It's a good idea to ask your bank in advance whether you can go overdrawn, or the bank may refuse to pay your cheques, direct debits and so on and will probably charge you for 'bouncing' these payments. The bank might write to you to tell you that you're overdrawn and charge you for the letter. Also, the interest on your overdraft is likely to be charged at a high rate. If you ask your bank in advance to allow you to go overdrawn, you may have to pay an arrangement fee but the interest on the overdraft will be lower. And, as long as you stay within the agreed overdraft limit, you should not have to pay other charges.Going overdrawn without permission on a regular basis could affect your credit rating.

The factor by which your earnings are multiplied to find out how much you can borrow.

The charge made by lenders when you borrow their money.

The figure that determines how much interest you pay. Usually linked to the Bank of England's rates and can move up or down.

A mortgage where you only pay the interest charges of the loan each month. This means you are not reducing the loan amount (or capital) itself, and this will need to be repaid in some other way.

Standard documents that all authorised lenders and brokers must give you to explain their services and details about the mortgage you're interested in.

The percentage of money you want to borrow compared to the cost of the property.

A loan which is secured against your property.

A mortgage broker helps you understand the various mortgage types and deals available to them. A mortgage broker may recommend a mortgage for you or they may provide you with information to enable you to make your own choice.

An insurance policy that can pay an agreed amount if you're unable to earn because of illness or redundancy. This can therefore help to keep up your payments to your lender. You can arrange an authorised overdraft with your bank for you to use at any time.An unauthorised overdraft is when you go overdrawn without the bank's permission. If you don't have sufficient funds in your account, the bank could bounce cheques, direct debits and other payments you want to make. This could also result in expensive charges.Unauthorised overdrafts often incur a higher interest rate and other charges. Going into overdraft without permission on a regular basis could affect your credit rating or access to credit.

Some banks offer an overdraft facility on a current account. There are two types of overdrafts: authorised and unauthorised.

A list of firms that are regulated by us to carry out financial services in the UK. You can check online to see whether a firm is regulated by the FSA.

The process of changing your mortgage for a different one, without moving home.

A mortgage that pays off both the home loan and the interest at the same time. Make all the payments and the mortgage will be fully repaid.

A tax which home buyers must pay on properties above a government set figure.

A loan at the lender's normal mortgage rate - ie without any discounts or deals.

You can arrange for a payment to someone to be made direct from your account on a regular basis (for example, to pay bills or a regular allowance to a student son or daughter). You arrange this with the bank.

A mortgage is a secured loan on your home; this means that if you fail to repay it, your lender may be able to sell your home to get its money back.

A report on the condition of the property you are planning to buy.

A mortgage with an interest rate that is usually linked to a particular rate that is set independently from the lender and moves up or down with it.

The length of your mortgage.

A brief inspection, for the benefit of your lender, of the home you hope to buy. This is to make sure they are not lending more than the property is worth and that the property is suitable security for the mortgage, but this will not tell you if it is a good or bad buy. For your own peace of mind, you may want your own survey.

Interest rates offered by banks and financial institutions on loans or deposits which are liable to change according to circumstances. For example, a movement in the interest base rate set by the Bank of England would usually be an influence.