Jargon Buster

Redemption

Occurs when a mortgage is fully repaid.

References

Your lender will want to take up references from your employer, to confirm information given by you on your application form.

Release fee

A fee charged by lenders for the work involved in releasing their charge on your property, when you fully repay your loan.

Remortgage

The re-financing of a property either by switching lenders, or by taking out a second mortgage to draw on the equity that may have been gained by the rise in capital value of the property.

Repayment Mortgage

A mortgage is made up of two parts, the 'capital' which is the amount of money you have borrowed, and the interest you pay on the capital. The mortgage payment covers the interest due for the month plus repayment of part of the capital. At the end of the mortgage term, you will have repaid the full amount that you have borrowed, as long as you've made all the monthly repayments.

Repossession

This occurs when the mortgage lender takes possession of the property due to the non payment of the agreed mortgage.

Retention

This is where a mortgage lender retains part of a loan until repairs or specified works to the property have been satisfactorily completed.