The information in this Glossary is meant for information purposes only and to help you understand the terminology that you may come across as you review your lending options. For the avoidance of doubt Breeze Loans is not authorised to advise, arrange or lend money in respect of mortgages regulated by the Financial Services Authority (FSA) and the information in this Glossary or elsewhere on this site should not be taken to be a financial promotion for the purposes of the FSA's mortgage conduct of business rules.

This is the extra interest that the lending company may charge over and above its normal or base rate. Any loading is calculated on your financial circumstances and requirements.

The secured loan value.

A fee which may be charged by brokers or lenders. It generally includes the administration involved in an application. The Application Charge may also cover various fees and charges incurred when collecting information to support your application. For example, references from existing lenders and the cost of the valuation report. The charge only becomes payable upon completion of your secured loan, mortgage or re-mortgage.

The APR is a yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans.

See "Higher Lending Charge".

This stands for "Accident, Sickness & Unemployment" insurance. This is sometimes known as PPP, which stands for "Payment Protection Policy". This type of insurance is designed to protect your monthly mortgage repayments in the event of you being unable to work due to one of the reasons specified in the insurance policy. This is also referred to as Payment Protection Insurance (PPI). Breeze Loans offers a range of ASU products so that there is one suitable for most circumstances.

Optional Payment Protection Insurance is underwritten for Breeze Loans by AXA Insurance UK plc and AXA Sun Life plc, administered on their behalf by Direct Group Limited.

A trading style of The Funding Corporation (1) Limited providing secured personal loans.

This type of insurance covers the cost of repairing (or rebuilding) the structure of your property following such events as fire, explosion etc. The policy generally covers some of the "permanent" fixtures of your home such as washbasins, toilets etc. All insurance and financial lenders will insist that you have adequate Buildings Insurance in place.

Also known as a Repayment mortgage, this is the traditional method of repaying a mortgage loan. The repayments which you make go partly towards reducing the mortgage debt, and partly towards paying the lender's interest charges. The mortgage debt is guaranteed to be repaid at the end of the term providing you have made all your monthly repayments when due. This is one of the main attractions of this type of mortgage. When taking out a Capital and Interest mortgage it is crucial that appropriate life cover is in place to protect the mortgage debt, otherwise your home could be at risk. It is your responsibility to ensure that adequate life cover is in place. Lenders can often introduce you to a company that offers life insurance products if required.

A payment you may receive from a company on completion of an obligation such as taking out a loan or repaying a loan to a schedule.

This stands for "County Court Judgement", and is a ruling reached in the County Courts, normally for outstanding debt. CCJs appear on your credit records and remain there for several years. Having CCJs registered on your credit records can have an adverse effect on your ability to borrow money.

This stands for "Certificate in Mortgage Advice and Practice", and is an industry recognised qualification. The CeMap examinations (or equivalent) must be passed before a mortgage adviser can give unsupervised mortgage advice to the public.

The formal end of the mortgage (or re-mortgage) transaction, when the money is handed over and legal formalities are dealt with.

This is the time you are given to review the secured loan information sent to you after application. Companies are prohibited by law from contacting you over the consideration period, even if queries arise from their side, about the loan application. The period lasts 16 days. You may contact the company at any time during the period.

This type of loan is designed to pay off any existing debts, such as credit cards, Hire Purchase, store cards etc. The aim is to lower your monthly repayments and give you more financial control as you will make just one re-payment each month.

This type of insurance covers the contents of your home, ie, furniture, personal belongings etc against theft, and against accidental damage (if you ask for "Accidental Damage" to be included in the policy). Although the lender will not insist that contents insurance is in place, it is sensible for you to ensure you have adequate cover.

The legal process involved in buying and selling property.

A credit history describes the behaviour of an individual with regards to money they have borrowed and how well they have repaid their debts. It includes information on missed payments and legal judgements. Credit history is held by companies from which that person has borrowed money and at credit bureaux. Credit history is a good indicator of future repayment behaviour and is used as part of the assessment of risk and therefore the APR charged and amount that is willing to be loaned.

This is a detailed report of an individuals' credit history. The report is prepared by a credit bureau and used by financial lenders to establish an applicant's creditworthiness. The report includes personal data, a summary of the individual's credit history and detailed account information. Experian and Equifax are the main bureaux.

The credit score is a ranking created by a lender of an individual's likely risk and therefore their willingness to lend to that individual and at what cost. Factors sometimes used include Credit History. Earnings, Age, length of relationship with the lender, Marital Status, Property Ownership, Landline Telephone ownership, and Employment. Each lender will have its own Credit Scoring system.

This refers to how a lender calculates the interest charges for your mortgage. If a lender uses a "daily interest" calculation, this means that it bases its ongoing interest charges on what you actually owe each day. Consequently, from the day after your monthly repayment is credited to your mortgage account, the lender's interest charges are based on a lower mortgage balance because your mortgage payment has reduced the amount you owe to them. A daily interest calculation is more beneficial than a monthly interest calculation, it effectively takes a "snapshot" of your account once each month (usually at the end of the month), and bases its interest calculation on what you owe on that date. Therefore, regardless of the date your monthly repayment was actually credited to your mortgage account, your interest charges will not be recalculated until the end of the month.

An amount of money borrowed and owed by one party to another.

The amount of money you put towards buying a property.

A variety of conveyancing costs incurred during the mortgage process. Often included are Stamp Duty, Land Registry Fees, Local Searches etc. These fees are usually collected by your solicitor.

This is a variable rate mortgage where the lender reduces the normal rate for a set period of time at the start of the mortgage. This reduction is guaranteed for a specified time, sometimes for a certain number of years from completion but more often until a set date in the future.

This is a fee that is incurred if you pay off all (or part) of your mortgage before an agreed date. This is usually in conjunction with a fixed or discounted rate mortgage. The Early Repayment Charges attached to a mortgage can always be found within the terms and conditions of the lender's Mortgage Offer.

This is a combined life assurance/savings policy designed to produce a lump sum to pay off an Interest Only mortgage.

The difference between the current market value of the property and the amount the owner still owes on the mortgage or on any secured loans outstanding on it.

This is the point where the purchaser and the seller of a property sign and "exchange" contracts which show the agreed price of the property and what fixtures and fittings are included. The date when everything is to be finalised is also included on these forms. When the contracts are exchanged, the transaction becomes legally binding and if either party pulls out, compensation will be due to the other party.

This organisation is responsible for Authorising and Regulating companies within many business sectors, including the mortgage industry.

This type of mortgage fixes the interest rate for a set time period at the start of the mortgage. The rate is sometimes fixed for a certain number of years from completion, but more often until a set date in the future. The advantage of having a fixed rate mortgage is that you have the security of knowing exactly what your mortgage repayments are going to be each month for as long as your rate is fixed. However, the drawback is that if interest rates fall during that time period and go below your own fixed interest rate, your monthly repayments will not go down.

This type of mortgage offers a range of flexible options including overpayments, underpayments and payment holidays (subject to the lender's terms and conditions).

This is where you own the property and the land it stands on.

This is where the person selling a property accepts an offer on it from a prospective purchaser, but then accepts a better offer from someone else.

This is a one-off fee charged by some lenders where the "Loan To Value" (see below) is more than around (say) 70% or the amount of the loan is high. The fee may used by the lender to buy insurance to protect itself in case your property has to be taken into possession and then sold for less that your outstanding mortgage debt. It is important to note that the insurance covers the lender, and not the borrower. However, if a claim is paid out under such insurance, the insurers generally have the right to recover the claim from you.

This is an alternative way of arranging a mortgage, and works differently to a Capital and Interest (Repayment) Mortgage. Your monthly repayments to the lender are only made up of interest, and do not go any way towards reducing your mortgage balance. Instead, you pay a separate monthly amount into an investment policy (for example an endowment policy or an Individual Savings Account (ISA)). The aim of this is to grow the policy or account throughout the term and then repay the mortgage loan. However, it is not guaranteed to cover your mortgage balance and it is your responsibility to ensure that a suitable investment policy is in place to repay the mortgage at the end of the term. You must also ensure that adequate life cover is in place to cover the mortgage debt, otherwise your home could be at risk.

The monthly effective rate paid (or received if you are a creditor) on borrowed money. It is expressed as a percentage of the sum borrowed.

This stands for Insurance Premium Tax, and is a tax payable on all UK general Insurance policies. The rate is currently 5% but is subject to government change.

This stands for Individual Savings Account, and is an investment product which has certain tax advantages. An ISA can only be held by one named individual and not a couple.

This is where you own the property but not the land it stands on. With a leasehold property you pay a monthly rental payment to the person or company who owns the land, known as "ground rent".

This is a fee charged by the lender to cover its own administration costs.

This stands for "London Inter Bank Offer Rate", and is the interest rate at which banks lend to each other. LIBOR can vary day by day and is not linked directly to the Bank of England Base Rate. LIBOR is used by some lenders as their base lending rate instead of a Standard Variable Rate which is connected to the Bank of England Base Rate. Lenders who use LIBOR as its base lending rate usually review the rate on a quarterly basis.

Although these firms specialise in the legal side of buying and selling properties, they are not generally accepted by lenders as an alternative to using a solicitor.

This is when a lender gives money or property to a borrower. The borrower must agree to return to property or re-pay the money along with interest. This return or repayment must be done by a predetermined date in the future.

This stands for "Loan To Value", and refers to the amount of a mortgage as a percentage of the value or purchase price of a property. For example, a £90,000 mortgage on a house worth £100,000 would represent a LTV of 90%.

See "Daily Interest"

This is a formal document from the lender stating how much it is offering to lend you and on what terms and conditions.

When a product is described as "portable" it means that you may be able to transfer it to a new property if you should move home (subject to the lender's terms and conditions).

See "ASU Insurance" rocessing Charge

See Application Charge Redemption Charges

(Also see "Early Repayment Charges"). These are the expenses charged by a lender for the general administration involved in closing your account if it occurs before the completion of the agreed term. Redemption Penalties

See "Early Repayment Charges"

This is when an individual makes an extension

This is a charge made by the lender for sending the mortgage funds to your solicitor in order for a mortgage transaction to be completed.

This is where you take out a new mortgage on your property with a new lender, even though you are not moving home. Your previous lender is paid off with funds from a new mortgage.

See "Capital and Interest Mortgage"

See headings for "Capital and Interest Mortgage" and "Interest Only Mortgage".

This type of loan is only available to homeowners as the loan is "secured" on your home. Large amounts of money can be borrowed at a low interest rate, but if you do not make the monthly repayments, your home is at risk of repossession.

This is where you confirm in writing how much you earn, and the lender does not need confirmation of your income from a third party.

Solicitors are required to carry out all the legal work involved. LoanOne will provide solicitors to carry out the appropriate legal work and meet their costs, if you are happy for us to do so.

When moving to another home, this is a one-off tax which you are required to pay on properties costing over £60,000.

This means "Standard Variable Rate", and is the way which most lenders define their standard lending rate (some lenders use the LIBOR rate instead; see above). A lender's Standard Variable Rate is linked to the Bank of England Base Rate. However, whilst the SVR will generally go up and down in line with changes to the Bank of England Base Rate it is normally set by the lender at a slightly higher rate. Lenders calculate their own SVR, and consequently they vary from lender to lender.

This refers to the type of ownership of a property and the land it stands on, ie. Leasehold or Freehold (feuhold in Scotland ).

This relates to the number of years you take the mortgage out over, at the end of which it must be repaid.

If you have a special mortgage deal such as a fixed or discounted rate, you may have to agree to stay with the lender for a period of time after the special deal has ended. Moving your mortgage within this period can incur early redemption penalties.

This is an extremely important set of official documents which confirm the ownership of a property.

This is a legal document which is used when there is to be a partial change in ownership of a property, for example where someone is being added to or removed from the Title Deeds of the property.

This is an inspection of a property to find out how much it is worth and whether it is suitable to lend a mortgage on. The inspection is usually carried out by a professional surveyor on behalf of a lender. It is not a detailed survey, however a more in-depth survey can often be arranged at an additional cost. Valuations for secured loans are often carried out by an automated process using Property Sale Price information supplied by the Land Registry.