A mortgage product where the interest rate is variable and is set with an upper limit on the interest rate payable on the mortgage. This allows you to take advantage of any fall in the variable rate while giving you the reassurance that the rate will not rise above the pre-set limit if the variable rate goes over that limit. 

This is used in two ways:

1. It means the legal transfer of a property so that you own it and are able to move into it.
2. It is the time when we actually pay over the money we are lending to you (whether you are buying or remortgaging).

Another word for the legal side of transferring ownership of a property from one person to another

Our method of assessing how likely each mortgage applicant is to keep up their monthly mortgage payments. It is not unique to us but it is a proven statistical method of assessment. It is based on the performance records of customers with similar characteristics.

The interest rate is a set amount under a specified rate (for instance our Standard Variable Rate) for a given period of time. Your monthly payments will still alter in accordance with the terms of the loan.

Advice available from financial advisers who are authorised to give advice and make recommendations on products regulated under the Financial Services and Markets Act. We have decided to introduce customers exclusively to Legal & General for financial advice.

This is a specified interest rate in a special product in which the interest rate is fixed for a given period of time. During this period the monthly payments may alter as a result of changes in insurance premiums, or because fees have been charged to your account.

Lending a higher proportion of the purchase price of a property brings with it a higher risk to us, making this type of payment necessary. The HLC may be used by us to arrange additional insurance with a specialist insurer. The additional insurance gives us some protection against the risk of selling a repossessed property at a loss, but may not cover all of that loss. If we ask for this payment or take out additional insurance you will still be responsible for repaying the the loan as your obligation to repay the loan is not removed or reduced.

Whether you need to pay an HLC depends on the amount of the loan you are seeking compared to the valuation or purchase price of the property (whichever is the lower). This amount is shown as a percentage and is described as being the loan to value (LTV).

The whole arrangement between us including the loan and all terms and conditions. It is also a legal document (which can be referred to as a Legal Charge or, in Scotland, a Standard Security) under which the owner of a property agrees that the property will be security for repayment of a loan which a lender makes.

A facility providing a reserve of cash which allows you to increase your borrowing up to 95% of the value of the property, subject to normal income multiples. Such borrowing is added to your existing mortgage which you can repay over the term of your mortgage or over a shorter term if you wish.

Please note: this additional lending option is temporarily unavailable until further notice.

The period over which the loan is to be repaid. This period will be in the mortgage offer.

You may make overpayments either as regular additional payments or as lump sums (subject to any overpayment limits). These overpayments will be credited to your account on the same day therefore reducing your account balance straight away.

Repaying one mortgage by taking out another with a new lender which is secured on the same property.

There are two repayment methods:

1. Repayment where the capital is repaid over the mortgage term together with interest.
2. Interest only where only interest is paid to the lender over the mortgage term and a suitable repayment vehicle is arranged and maintained by the borrower to provide the necessary lump sum to repay the capital and interest at the end of the term.

In Scotland, completion is known as 'settlement'. If you receive a mortgage offer and you decide to go ahead with your mortgage, the final agreement between you and us is known as settlement. It's when we actually pay over the money we are lending to you and when you will usually be able to move into your home.

This is a product which usually involves:

1. A fixed, discounted or capped rate of interest; or
2. Other special deals such as cash-back or fee payment.

Special products are available for limited periods.

Any amounts that you pay in addition to your usual monthly payment - either as lump sums or as regular additional payments - will accumulate as a 'surplus'. If you have accumulated such a surplus and subsequently find that you need to reduce your monthly outgoings for a period of time, you may reduce your monthly payments for a period, subject to agreement, until the accumulated surplus has been used up.