Loan Jargon - Best UK Loans

APR - Annual Percentage Rate of charge. The true rate of interest charged on a loan taking into account the total cost of interest and other charges e.g. brokers fees/legal fees. The calculation is set out in statutory regulations.

(Life) Assurance - A Specific type of life insurance policy often linked with a mortgage or loan. A portion of premium goes toward insuring your life, and will pay off loan in the event of death. The rest is invested and will pay a lump sum at the end of the term.

(Level Term) Assurance - Life assurance which pays out a lump sum if you die during the term. Suitable for interest only loans as the amount owed on the loan remains the same throughout the life of the loan.

Autoscore - The process of using specialised online credit search databases to identify an applicants credit status.

(Mortgage/Finance) Broker - An intermediary who identifies, and places, customers requiring a loan or mortgage etc. with a company (Lender) able to provide it. The broker often carries out the administration to do with processing the loan.

BSQ - BUILDING SOCIETY QUESTIONNAIRE: A questionnaire completed by bank/building society or other lender providing details and conduct of an applicant's mortgage account.

Cashback - A type of loan where the borrower is given back a sum of money (usually a percentage of the loan). Used by lenders as an incentive to promote their products.

CCJ - County Court Judgement. An order of a court against a debtor to pay money owed.

Conveyancer - A person, used as an alternative to a solicitor, to carry out the legal work involved in buying and/or selling a property. Note: It should be checked that they are licensed to carry out this function.

Discounted Rate - A discounted rate gives you a reduction of, for example, 2% off the standard variable rate (SVR) for a specific period. So, during this period should the SVR rise and fall, you will still qualify for the discount and therefore pay a lower rate.

Double Insurance - Policies vary from lender to lender. Generally double insurance offers protection against sickness, accident and redundancy for the first and second wage earners. Cover is also available for self employed borrowers and under certain circumstances for non working partners. Details of the specific insurance plan will accompany the lenders offer.

EasyLoans strongly recommend that you consider some form of insurance protection, especially in the case of secured loans and mortgages.

Exchange of Contracts - Agreement signed by house purchaser and vendor committing themselves to the transaction. Once this has occurred a legally binding contract is in existence and the purchaser must complete the purchase within a specific period of time.

Emergency Home Assistance - An insurance policy that will provide a suitable tradesman to effect a repair in the event of an unforeseen home emergency e.g. a plumber for burst pipes, a roofer for lost tiles etc.

Endowment - A life assurance policy that is designed to produce a lump sum to pay off an interest only mortgage. There are a number of different kinds of endowment policies: 'with-profits', 'unit-linked' etc.

Fixed Rate - The rate is fixed for a specific number of years, so you know what your payments will be over that period. Following this period, the rate will usually revert to the lender's standard variable rate.

Flexible mortgages - A more recent innovation, these give various benefits which usually include the ability to vary payments in line with your circumstances. They may also allow you to take "payment holidays" and to borrow back any overpayment you may have made.

Freehold - Land / Property is owned outright by the Freeholder. Whether the property is held on a lease or a freehold basis will be identified in the deeds to the property.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Best UK Loans is a trading name of Grovelawn Limited, who are directly authorised and regulated by the Financial Services Authority.
Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY; FSA Registration Number: 314204