Glossary

Monthly payment – This is how much you will pay each month during the initial rate and period

Initial rate and period – This the type of initial deal, rate and how long it lasts

Final rate – This is the rate (as of today but subject to change over time) you will pay after the initial rate period has expired if you do nothing

Overall cost for comparison (APRC) – A figure taking into account the initial rate, final rate and fees to give a quick way of comparing the overall cost of a mortgage expressed as a percentage

Max loan to value (LTV) – This is the maximum percentage of the property value the lender will lend on this particular deal

Fees – This shows some of the fees charged by the lender but doesn’t include all fees and charges, these will be shown in your full mortgage illustration

Revert % – The interest rate charged after the initial period (usually the lenders standard variable rate and subject to change during and after the initial period)

Revert £ – How much the monthly repayments will be after the initial period (usually the lenders standard variable rate and subject to change during and after the initial period)

APR – The annualised percentage rate, a figure that takes into account the interest rate, fees and charges during the first year to give a more true reflection of the overall cost for comparison

ERC – Early repayment charges, how much you will be charged for paying-off the mortgage before a certain date (usually before the initial period has ended)

Fees – Fees charged by the lender for arranging that particular mortgage

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