UK Mortgage Terminology - Statistical and Industry Jargon

Statistical and Industry Jargon

• Arrangement fee - Either a percentage of the loan advance or a set fee charged by the mortgage lender or mortgage brokers to provide and arrange a mortgage.
• Loan to Value (LTV) - The total loan size in relation to the value of the property.
• Mortgage gross lending - all new lending done in a given period including remortgaging and new loans for house purchase.
• Mortgage balances outstanding - the total mortgage balances outstanding at a given point of time.
• Net mortgage lending - the total change in balances outstanding between two point in time, this can also be calculated by adding together the total gross lending in a period less repayments, redemptions and loan losses in the same time period.
• Redemption - paying back a mortgage 'early' as opposed to paying back a mortgage following a set repayment plan, typically when remortgaging to another mortgage provider or by way of some other lump sum payment (e.g. when selling of the property).
• Remortgaging - refinancing of a mortgage, usually understood to mean moving from one provider to another.
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