Mortgage Glossary
There is a lot of ‘jargon’ used in the mortgage industry.
We have tried to provide you with a comprehensive explanation of all the terminology that you may come across during the mortgage process
Right to Buy Mortgages
These are mortgages specifically tailored for public sector tenants who qualify to buy their home under the Government’s Right-to-Buy scheme. You may be eligible to qualify to buy your council home if you are a secure tenant of either; a London Borough council, a district council, a non-charitable housing association, or a housing action trust.
Discounted rates are usually offered to council tenants for their homes. So if you are a council tenant wanting to buy your home, the rate you will pay will depend upon how long you have lived there. The amount of discount you will receive is roughly in proportion to the number of years you have been paying rent.
Remortgaging
This is the term used when moving your mortgage from one lender to another without actually moving house. You may do this to save money.
This might be possible by switching to another mortgage product with the same lender or by switching your mortgage to a competitor. Before making your decision remember, if you move lenders, the saving you make on the interest rate you pay may be partially or wholly eaten up by the transaction charges associated with moving your loan.
If you are thinking about remortgaging it is advisable to do your sums carefully and take good advice from a mortgage adviser. If you don’t do your homework properly you could face the equivalent of several months’ mortgage payments which would effectively wipe out any of the benefits of remortgaging.