private wealth mortgages

APR – Annual Percentage Rate – this shows the overall cost of a loan each year, taking into account the term, interest rate and other costs.

Approval in principle – a certificate that some lenders give you, showing the amount they will probably be willing to lend you. This isn’t a guarantee, but can be helpful when dealing with estate agents.

Buy-to-Let mortgage – a loan you take out to buy a property that you intend to rent to tenants.

Capital – the amount you borrow to help you buy your home

Capped mortgage – a mortgage with a maximum limit on the interest rate you’ll pay during the deal period.

Cashback mortgage – a mortgage that comes with a cash sum (often a percentage of the amount you are borrowing)

Collared mortgage – a mortgage with a minimum interest rate you’ll pay during the deal period.

Deposit - the amount of money you put into buying a home (not including the money you are borrowing)

Discounted mortgage – this has a lower variable rate of interest for a set period, then the rate increases.

Early-repayment charge – a charge you may have to pay if you pay back a mortgage early (including if you move to another lender)

Fixed Rate – an interest rate that is fixed for a set time.

FSA Register – a list of firms that are regulated to sell financial services.

Income multiples - the number by which a lender multiples your earnings to find out how much you can borrow.

Interest – The charge that lenders make when you borrow their money.

Interest-only mortgage – a mortgage in which you pay only the interest charges of the loan each month.

Interest rate – the figure that decides how much interest you pay. It is usually liked to the Bank of England’s rate and can move up or down.

Keyfacts document – standard document that all regulated lenders and advisers must give you. This explains their services, costs and details of the mortgage you are interested in.

Loan-to-value – the amount of money you want to borrow compared (as a percentage) to the value of the property.

Mortgage – a loan secured on you property. If you don’t keep up the mortgage repayments your home may be repossessed.

Remortgaging – changing your mortgage for a better deal, without moving home.

Repayment mortgage – a mortgage in which you pay off both the loan (capital) and interest at the same time.

Secured – If you do not repay your loan, the lender can sell your home to get its money back.

Standard Variable rate mortgage – the lenders normal rate – ie without any discounts or deals.

Tracker mortgage – a mortgage with an interest rate usually linked to the Bank of England or other base rate, moving up or down with it.

Term – the length of your mortgage, normally expressed in years.