APR
'Annual Percentage Rate' is calculated on the amount of interest you will pay, the length of the term of the mortgage, and certain other charges such as any arrangement fee.

CAPPED RATE
Your interest rate won't go above a certain level - the 'cap' - during the capped rate period. This means that you can enjoy any rate reductions, yet have the comfort of knowing that your rate won't go above the cap.

CASHBACK
Certain mortgage products offer cashback, which means you get a cash lump sum when you enter into the mortgage to spend on anything you want.

CREDIT SCORING
Lenders may use the information you provide to assess the suitability of your application using a technique known as credit scoring. You agree that when considering an application for credit, lenders may use the information supplied to offer additional products. A measure of credit risk calculated from a credit report using a standarised formula. Lenders may use a credit score to determine whether to provide a loan and what rate to charge. A Credit Reference may be used by some lenders, this means they simply check with the credit agencies to ensure you have paid any current credit in a timely manner.

EXCHANGE OF CONTRACTS
The swapping of contracts between a buyer's conveyancer and a seller's conveyancer, know as signing of Missives in Scotland. Once you have exchanged contracts you are both legally bound to the transaction.

INCOME MULTIPLIER
The way lenders work out how much you can borrow, usually by multiplying your gross annual salary. Lenders usually lend up to 3.25 times salary or 2.5 times combined salaries if buying jointly but this varies in line with fluctuations in interest rates.

DISCHARGE FEE
You have to pay this to some lenders for releasing their hold over a property once you've paid off your loan.

DISCOUNTED RATE
This means interest is charged at the variable base rate that applies to the mortgage, less a discount for a set period. This means the rate, and your monthly payment, will vary - up or down - whenever the variable base rate changes, but will remain below the variable base rate during the discounted rate period.

EXCHANGE OF CONTRACTS
The swapping of contracts between a buyer's conveyancer and a seller's conveyancer. Once you have exchanged contracts you are both legally bound to the transaction.

INCOME MULTIPLIER
The way lenders work out how much you can borrow, usually by multiplying your gross annual salary. Lenders usually lend up to 3.25 times salary or 2.5 times combined salaries if buying jointly.

LAND REGISTRY FEE
Your conveyancer pays this on your behalf to register your details in the land Registry records once you've bought a property or changed your mortgage lender.

LEASEHOLD
This means you own a property for a set number of years. When the lease expires, the property returns to the freeholder. Flats are commonly sold as leasehold.

LTV
Loan to the value is the proportion of the value or price of the property (whichever is the lower), which you borrow on a mortgage. For example, a £63,000 mortgage on a house valued at £70,000 would mean a LTV of 90%.

PAYMENT HOLIDAY
You can stop making mortgage payments altogether for a limited period agreed with the lender.

STAMP DUTY
UK Government taxes you have to pay on the purchase price of a property worth normally £125,000 or more. This has been lifted to £175,000 as an interim measure due to the difficulties in the mortgage market.

VARIABLE BASE RATE
The variable base rate is the basic rate of interest charged on a mortgage.