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ADMINISTRATION FEE
This is a non-refundable fee, which covers the processing of your mortgage application and setting up of your account.
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ADVANCE
The actual amount of money we lend you by way of a mortgage.
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APR
Stands for 'Annual Percentage Rate', which helps you compare the cost of different mortgage deals. It takes into account the amount of interest you will pay, the length of the term of the mortgage, and certain other charges such as any arrangement fee.
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ARRANGEMENT FEE
Lenders sometimes charge a fee to cover the work involved in setting up your mortgage or for certain mortgage rates. We refer to this an Administration Fee.
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ARREARS
The term used to describe overdue payments where a borrower has failed to keep up the monthly mortgage payments.
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ASU
Accident, Sickness and Unemployment (also referred to as Mortgage Payment Protection Insurance - MPPI). This is an insurance policy designed to provide a regular income to pay the mortgage, should the borrower become unemployed or be unable to work due to an accident or sickness.
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BANK OF ENGLAND BASE RATE
This is the interest rate set by the Bank of England (it is officially called the 'repo rate'). The Bank of England rate is the main factor influencing interest rates charged by lenders.
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BUILDING SOCIETY
A mutual organisation owned by its members whose principle purpose is making loans secured on residential property which are funded substantially by its members.
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BUILDINGS INSURANCE
What you must have to protect your property against hazards such as storm, fire, and flood.
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BUILDINGS SURVEY
This is a technical report following an inspection of the property. It will give you a comprehensive account of the condition of the property, describing any structural or other defects. Please note the difference between this and a valuation report, which is carried out on behalf of the Society whenever you make an application for a mortgage.
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