A loan you take out to buy your home.

Mortgage Deed

Legal document that you must sign to say that lender has a legal charge over your property.

Mortgage Payment Protection Insurance

This is an insurance that will cover your mortgage payments should you be unable to work due to an accident, illness or involuntary redundancy.

Mortgagor

Person who borrows money to buy a property.

Mortgagee

Building society, bank or other company which lends money against security of a charge over property purchased.

Offer Letter

This is official letter that lender sends to you once all referencing and valuations have been carried out satisfactorily.

Quotation

Document that illustrates cost of your mortgage.

Redemption Penalties

These are charges that some lenders make if you decide to move your mortgage.

Repossession

When a borrower fails to pay back their loan in accordance with its terms and conditions, lender can exercise their legal right to take ownership of property.

Repayment Mortgage

The payments you make each month will pay off interest and an element of capital.

Redemption Figure

This is amount to be repaid to your existing lender when you move your mortgage.

Sealing Fee

This is charge made by some lenders when they release legal charge over your home.

Searches

Enquiries made at Land Registry, Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to land.

Stamp Duty

A government tax on price you pay for your home.

Standard Variable Rate This is normal variable rate charged by a lender. This rate can go up or down at any time at lender's discretion.

Subject to Contract

A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.

Term

Length of time over which your mortgage loan is to be paid.

Title

Legal right to ownership of a property.

Title Deed

Legal document which transfers ownership of registered land.

Valuation

This is a report produced on behalf of lender. Lenders use this to decide whether they will offer a mortgage on property.

Valuation Fee

A fee paid by borrower for lender's inspection of property.

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If you take out a specialist home improvement loan deal then you may find that your money is paid in instalments before pre-agreed work is completed. This allows you to manage your budget much more effectively and access your cash simply when you need it.

So, if you spend less than you budgeted for, then you could save yourself some money by not borrowing more than you needed to.

If you go over budget, then you'll still have ready access to money you need. You can also tie your home improvement loan into your existing mortgage package - so you will benefit from lower interest rates and may be able to release equity to help fund your project.

Most consumers will secure their home improvement loan against their property to access better rates - there is always risk here that you could lose your home if you don't make all your regular repayments. Although you can take out payment protection insurance to help prevent this, it will cost you more to do so.

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