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FAQ’s and Glossary of Terms

Glossary of Terms

Based on the Nationwide Dictionary of Mortgage Terms and definitions as of Moneyfacts.co.uk

LTV

The loan to value represents the amount you are looking to borrow (or the remaining amount of your existing mortgage) as a percentage of the value of the property. For example, if a property is valued at £100,000 and you have a £80,000 loan, the LTV is 80% (80,000/100,000 x 100 = 80%).

SVR

A Standard Variable Rate is a type of mortgage interest rate that you are most likely to go onto after finishing an introductory fixed, tracker or discounted deal.

Bridging loan

This is a short-term loan that ‘bridges’ the time period between two property transactions. It is used to cover shortfalls between buying one property and selling another.

Fixed rate mortgage

A fixed mortgage is where your mortgage payments stay exactly the same for an initial period. They’re great if you have a tight budget and want to know what you’ll be paying, or if you’re worried about interest rates going up

Tracker mortgage

A tracker mortgage is a type of variable rate that follows (or tracks) the movements of another rate – most commonly the Bank of England Base Rate Tracker mortgage

Mortgage valuation

A mortgage valuation is the most basic form of survey undertaken by a surveyor. Some mortgage lenders will not even physically visit a property to perform a valuation for low loan-to-value mortgage applications, relying on an automated system or a “drive by” valuation instead. The basic mortgage valuation will value your property as well as giving a rebuild value (the amount your home would need to be insured for to cover if it needed to be completely rebuilt). The valuation will uncover any obvious defects with the property, although it is not as thorough as a homebuyer’s or full structural survey.

FCA
Springtide Capital Limited is authorised and regulated by the Financial Conduct Authority.

Important Legal Information
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and loan amount. The FCA does not regulate most buy-to-let, second charge or commercial mortgages. The Financial Ombudsman Service is available at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4 567. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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