Non-status mortgage
If your yearly income is unpredictable, this could be for you, although higher rates usually apply to offset the lender’s risk.

Personal pension mortgage
A structured savings and investment plan to provide for your financial needs when you retire. If you’re aged 50 to 75, you can use some or all of the proceeds of the lump sum from a personal pension to pay off an interest-only mortgage.

Redemption penalties
Penalties levied by the lender when a borrower pays off a mortgage before the end of the agreed redemption period. Often charged on fixed, capped or discounted rate mortgages.

.Remortgaging
This is when you take out another mortgage on the same property to pay off the first. Sounds odd? Professional advice can really help here.

Sold subject to contract
Non-binding. Terms are agreed, but either party can pull out freely until exchange of contracts.

Standard Variable Rate
The interest rate the lender charges. Goes up and down, and your repayments are adjusted accordingly.

Terminal bonus
Bonus paid when an endowment mortgage ends. Amount usually based on how the investment fund you are using has performed.

Title deeds
Legal paperwork that documents the purchase history and property details such as rights of way. Usually retained by your solicitor after the sale.

Tracker mortgage
Mortgage with an interest rate set at a margin above or below the Bank of England base rate, usually for a period of 1-5 years but could also be for the term of the loan.

Yippee!
A sound made by people who know
they’ve made the right choice
of mortgage.