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This content applies to Scotland only.
Housing laws vary between Scotland and England. This page applies to Scotland only. Get advice relating to England
Accident, sickness and unemployment insurance (ASU)
Sometimes called mortgage payment protection insurance, but is different from mortgage protection insurance (see below). ASU is insurance cover that would keep up your mortgage repayments for a time if you were unable to work because of illness, accident or redundancy. The page on mortgage protection has more information.
Annual percentage rate (APR)
A lender's APR states the total cost for taking out the mortgage. It includes not just the interest rate, but also takes into account any additional charges you will have to pay, so is the best way to compare different mortgages. The page on interest options has more on this.
Arrears
If you fall behind with your mortgage payments, you will get into arrears. If this happens, the lender may want to repossess your home. The section on mortgage arrears has more information on what to do if you're in this position.
Bank base rate (BBR)
This is the interest rate set by the Bank of England, which is used by mortgage lenders to set their standard variable rate (SVR).
Base rate tracker mortgage
If you have a base rate tracker mortgage, the rate of interest you are charged will be set at a fixed percentage above the bank base rate, and will follow its rise and fall. Some base rate tracker mortgages offer an initial discounted rate.
Broker
A mortgage broker is an intermediary who helps you find and buy a mortgage. They will usually charge commission or a fee for this service.
Buildings insurance
You'll need to take out buildings insurance on your property as a requirement of your mortgage. It should cover the full cost of rebuilding your property. You don't need to take out your mortgage lender's own insurance unless you've agreed to a special package that includes it. It's best to shop around for a cheaper deal - the MoneySupermarket website is a good place to start.
Capital
This is the sum of money you borrow from a lender, such as a bank or building society, in order to buy your home. In addition to paying this back, you will also have to pay back interest on the loan. Capital is sometimes called the advance or principal.
Capped rate mortgage
The interest rate of a capped rate mortgage is guaranteed not to rise above a certain level during the capped period, which is often between three and five years. A capped and collared mortgage sets a minimum as well as a maximum rate for this period.
Cashback mortgage
Some lenders offer cashback deals where you get a percentage of the loan - say 5% - as a lump sum to spend on your move or whatever you choose.
CAT standards
These are standards set by the government for mortgages. CAT is short for Charges, Access and Terms. Read the page on CAT standards to find out more.
Current account mortgage
A current account (or all-in-one) mortgage combines a flexible mortgage with a current account in one package. Money in your current (or savings) account can be set against the amount you owe on your mortgage, so that your interest payments are reduced. Read the page on interest options to find out more.