Jargon buster ...

LTV

This stands for "Loan to value".  The means that the loan for the mortgage product must not exceed the specified percentage value of the property.

Fee Free

Some mortgage products contain fees such as valuation fees and arrangement fees. Sometimes these can be added to the loan and sometimes they must be paid upfront.  Fee free products do not contain any fees payable to the lender.

Capital and Interest Mortgage

The monthly mortgage payment is made up partly of a sum to repay a proportion of the amount borrowed (capital) and partly of a sum to repay the interest.
Given that a higher proportion of capital will be 'owed' in the early years of the mortgage, the interest element of the monthly payment is higher than it is in later years.
As the mortgage term progresses and the amount of capital owed begins to decrease, the proportion of the monthly mortgage payment representing interest decreases. This means that as the term progresses on a capital and interest repayment mortgage, the sum paid each month towards the capital becomes greater and the amount towards interest reduces. Providing all repayments are made, it is guaranteed that the loan will be repaid at the end of the term.
This can also be known as a repayment mortgage.

Interest only mortgage

The monthly mortgage payment consists of an amount sufficient to pay just the interest due on the full amount of the loan (for the full term). The capital element of the loan will normally be repaid at the end of the term using some form of repayment vehicle. It is your responsibility to ensure that you have a repayment vehicle in place or some other way of repaying the mortgage at the end of the mortgage term. You also need to ensure any repayment vehicle is reviewed regularly to ensure it is on target to repay your mortgage at the end of the term.
You need to be aware that if you surrender an investment policy, such as an endowment, early then there could be adverse financial consequences, depending on the type of investment and your personal circumstances.

Discount Mortgage

With a discounted rate mortgage, the lender's standard variable mortgage interest rate is discounted for a specified period of time. The discounted rate could be a set amount for a specific term or be 'stepped'.

Stepped Discount Mortgage

An example of a "stepped discount" mortgage" would be a 2% discount in year one and a 1% discount in year two.

Whole Term Tracker Mortgage

Tracker rates are another form of variable interest rate, usually linked to the Bank of England's base rate. The interest rate is usually a specified percentage above or below the Bank of England's base rate for a period of time.

Shared Ownership

You need to be accepted by a registered social landlord homebuy or a starter home initiative scheme before applying for a shared ownership mortgage. We will require written approval of your application from your Registered Social Landlord.
For all Affordable housing schemes, the property you are buying must be within our local lending area and the loan you require must be at least £40,000 to qualify for our Affordable housing mortgages.

100% Share

Under the shared ownership scheme, the minimum share you may purchase is 25% of the property's purchase price or valuation (whichever is lower). The maximum loan is 75% of the purchase price/valuation and 100% of the share you are purchasing.