Your location: Mortgage jargon
This content applies to Scotland only.
Housing laws vary between Scotland and England. This page applies to Scotland only. Get advice relating to England
Off-set mortgage
See current account mortgage.
Ombudsman
A watchdog organisation that offers free, impartial advice to consumers and can help you resolve disputes with service providers. If you have a mortgage and are unhappy with the service you have received, you can complain to the Financial Ombudsman Service. Visit their website to find out how.
Pension scheme mortgage
With this kind of mortgage you use part of your pension fund to pay off the loan. This type is mainly suited to self-employed people and higher rate taxpayers.
Redemption
Paying off your whole mortgage.
Remortgage
If you switch to a different mortgage deal or a different lender, this is called remortgaging. The page on changing your mortgage has more on this.
Repayment mortgage
This is sometimes called a capital and interest mortgage. If you take out a repayment mortgage, every month you will pay back some of the capital as well as the interest on the sum still outstanding. The page on repayment options has more information.
Repossession
If you don't keep up the mortgage payments on your home, your lender may take your home and evict you. The section on repossession explains what you can do if you're in this position.
Sale and rent back schemes
'Sale and rent back' is another term for a mortgage rescue scheme.
Shariah mortgage
Under the Islamic law of Shariah, the charging and paying of interest is not permitted. A Shariah mortgage provides a Halal (permissible) alternative to a repayment or interest only mortgage by allowing you to purchase your own home without having to pay interest (Riba).
Stamp duty
A tax you may need to pay when you buy a home. Find out more about stamp duty here.
Standard variable rate (SVR)
This is the basic rate of interest charged by your lender, and goes up and down as the bank base rate changes. Read the page on interest options to find out more.
Standard rate mortgage
If you have a standard rate mortgage, you will be charged interest at your lender's standard variable rate (SVR).
Term
The term of your mortgage is the length of time you have in which to pay back the capital and interest on the loan. The usual term is 25 years, but it can be longer or shorter. Shortening or extending the term of your mortgage will increase or reduce your monthly mortgage payments, and also reduce or increase the amount of interest you'll pay in total.
Valuation
Before they agree to give you a mortgage, a lender will get their valuer to look over the property to see how much it's worth and assess its suitability for mortgage purposes. You will be charged for the valuation, but may get the money refunded when you take out the mortgage. A valuation isn't the same as a survey. A lender will always require a valuation but a more detailed survey may also be required if the valuer recommends it.
Value
This is how much your home is worth in the current housing market. This may not be the same as the amount of money you paid for your home.
Variable rate mortgages
If you have a variable rate mortgage, your payments will go up and down according to the rise and fall of interest rates. There are several kinds of variable rate mortgages. Find out more in the page on interest options.
Voluntary repossession
If you're unable to keep up with your mortgage payments, you may have to hand over the keys to your lender as a last resort. The page on voluntary repossession explains more.