Apr

This stands for Annual Percentage Rate. It takes into account all fees and other costs in connection with mortgage as well as lenders interest rate.

Advance

This is actual amount of money that you borrow including any additional fees that have been added.

Base Rate The UK 's core interest rate which is set by Bank of England.

Bridging Loan

A temporary loan that enables you to complete purchase of a new home before completing sale of your existing property.

Capped Rate

These mortgages have a ceiling above which your payments will not rise.

Completion

The point at which money to buy your new home is released to seller and ownership is transferred to you.

Conveyance

Legal document which transfers ownership of unregistered freehold land.

Disbursements

The fees your solicitor has to pay such as; stamp duty, land registry, search fees, etc which will be added to your solicitor's bill.

Discounted Variable Rate

For a set period interest rate charged will be a set percentage less than standard variable rate.

Early Redemption Charge

If you repay your mortgage in full before a specified date you may be asked to pay an early redemption charge.

Equity The difference between value of your property and amount of any outstanding loans secured against it.

Fixed Rate

These mortgages offer a fixed interest rate for a set period of time.

Freehold The term used to indicate ownership of property and land on which it stands.

Interest Only Mortgage

With this type of mortgage, payments you make each month simply pay interest on amount you borrow. At end of mortgage term you must pay back amount you originally borrowed.

Land Registration This is a record held by HM Land Registry which lists registered owner of a plot and any legal charge that may be placed on it.

Lease

A document, which grants possession of a property for a fixed period of time and sets out obligations of both landlord and tenant such as; payment of rent and repairs.

Leasehold

Arrangement between a landlord and tenant where landlord agrees for tenant to lease property for a fixed period of time.

Legal Charge

The legal document held by Land Registry that identifies who has a claim on your property.

Home Improvement Loans are secured on your property and can be used by anybody looking to make home improvements. A home improvement loan is particularly good if you don't want to use your savings or do not have sufficient saved for your home improvement project.

The amount you will be allowed to borrow will really depend on lender you use and amount of equity in your property. You will also be assessed on criteria such as your income, your spending and your credit rating in certain cases.

Some lenders will also limit amounts depending on what you want to use your home improvement loan for. You can raise home improvement finance to cover anything from a small project to major building work.

With a Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and amount of equity in property that is to provide security for loan.