Most-used five: LTV — loan as a % of property value; lower is cheaper. SVR — the expensive default rate after your deal ends. ERC — the 1–5% charge for leaving a deal early. AIP — a lender's indication it would lend to you. APRC — the whole-life comparison rate including fees.
A–F
Agreement in Principle (AIP/DIP): a lender's soft-checked indication of what it would lend — see our full guide. APRC: the annual percentage rate of charge — the whole-term cost including fees, built for comparing deals. Arrangement fee: the product fee for a deal, £0–£1,500, payable upfront or added to the loan. Base rate: the Bank of England rate that trackers follow and fixes price against. Capital: the amount borrowed, as opposed to interest. Completion: the day money moves and you get the keys. Conveyancing: the legal transfer of property — fees explained here. Early Repayment Charge (ERC): the penalty (typically 1–5%) for overpaying beyond your allowance or leaving a deal early. Equity: the slice of the property you own outright — value minus mortgage. Fixed rate: a rate locked for a set period — see 2 vs 5 years.
G–P
Gazumping: the seller accepting a higher offer after yours — how to defend. Guarantor: someone whose savings, property or income backs your loan. Interest-only: payments cover interest only, capital due at term-end via a repayment strategy. Loan-to-Value (LTV): loan ÷ property value; each 5% band down improves pricing. Offset: savings netted against the balance to cut interest — guide. Overpayment allowance: penalty-free extra payments, typically 10%/year — how to use it. Porting: taking your deal to a new property — the catches. Product transfer: a new deal with your existing lender, minimal checks.
R–Z
Remortgage: replacing your mortgage with a new one, usually at deal-end — best options. Repayment mortgage: each payment covers interest and capital, clearing the loan by term-end. Stamp duty: purchase tax — run yours through the calculator. Standard Variable Rate (SVR): the lender's default rate after deals end — nearly always worth escaping. Stress test: affordability checked at a higher notional rate. Term: the mortgage's total length, commonly 25–40 years. Tracker: a rate moving with the base rate. Valuation: the lender's check the property secures the loan — not a survey, as our survey guide explains.
When the jargon has a decision behind it
Definitions are the easy half; most terms hide a choice with money attached. A broker translates both. Get matched with a mortgage broker through Nesto — free, no obligation.
Frequently asked questions
What's the difference between APR and APRC?
APRC is the mortgage-specific version: the total yearly cost including fees across the whole term, designed for comparing deals like-for-like.
What does 80% LTV mean?
The loan is 80% of the property's value — you hold a 20% deposit or equity. Lower LTV bands unlock cheaper rates.
Is the SVR always bad?
It's flexible (no ERCs) but nearly always expensive relative to available deals — fine for a month between products, costly as a home.
What's a product transfer vs a remortgage?
A product transfer is a new deal with your current lender, fast and light-touch; a remortgage moves lender and often wins on price. Compare both at renewal.