The mortgage loan.

This rate assumes certain fees and likely costs on a mortgage and includes these costs with the interest rate of the mortgage product. It is intended to help you compare products offered by different lenders.

This fee is sometimes charged to secure a special deal, for example a fixed, discounted, tracker or capped rate mortgage.

Mortgage payments which have not been paid and have become overdue.

The Bank of England 'repurchase' or 'repo' rate which is the main factor influencing interest rates charged by lenders.

A basic mortgage valuation is the minimum valuation required by a lender and helps them decide if the property is suitable to secure the loan and if it is worth the amount they are going to lend you. It is only a limited inspection of the property and does not cover everything about the property's condition or look for hidden problems. You should not rely on it when deciding whether or not to buy the property. You might prefer a more comprehensive survey (see 'Homebuyer survey' & 'Detailed building survey' for details).

Insurance which provides cover if the structure of your home is damaged.

A mortgage to buy a property which is to be used for the purpose of renting out to a third party.

This is our variable mortgage rate for buy to let mortgages. It can change from time to time.

The amount you owe excluding costs and interest outstanding.

With this sort of mortgage, the interest rate you pay goes up and down in line with the standard variable rate. However, you will not pay more than the capped rate for the capped rate term. So if the standard variable rate is higher than the capped rate, you pay the capped rate. If the standard variable rate falls below the capped rate, you pay the standard variable rate.

A trade association for UK mortgage lenders.

This is the final stage of the buying process when the property is legally transferred to you.

Cover for all your personal belongings.

Usually carried out on your behalf by a solicitor or licensed conveyancer. It establishes the legal boundaries of the property, any local planning applications or developments that may affect the future value and checks that the seller is the rightful owner.

When a payment is made the balance is reduced immediately and interest is calculated on the new lower balance from the next day to the end of the month.

Sets out rules about how your personal information can be used, including how it can be obtained, held, used or disclosed by others.

The most comprehensive type of property survey carried out by a professional surveyor that should give the buyer an indication of any structural problems or repairs required.

A way of authorising recurring payments, such as a mortgage payment, that might vary in amount or frequency, to be drawn on an account.

Various fees that your solicitor pays on your behalf to carry out your legal work. These can include land registry fee, search fees and stamp duty. They are added to your solicitor’s final bill.

If you repay all of your loan in the first few years you may have to pay an early repayment charge. This is an extra amount charged on some mortgages if you repay all of your loan before a specified date or period of time.

The difference between the amount you owe on your mortgage and the value of your home.

Work that must be done on the property before the mortgage loan can be issued.

Nottingham Building Society is a member of the Financial Ombudsman Service. This provides independent arbitration if you have an unresolved complaint after going through the Society’s own complaints procedure. You can contact the Ombudsman at: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR.

With a fixed rate mortgage the interest rate you pay is fixed for a set period from the start of your mortgage. Whatever happens to other interest rates in that time, the fixed rate you pay will not change.

An independent watchdog that regulates the financial services industry.

This is an extra loan that provides additional funds for home improvements or for other purposes, and is secured against the property.

A one-off fee charged by most lenders where the loan is above a specified percentage of the value of the property.

As well as a basic mortgage valuation, this is a survey of the condition of the property. It covers all parts of the property that are easily accessible. This report will not cover areas that the surveyor did not have access to, for example, underneath carpets, but will give you their general opinion about the property, detail any future problems they can foresee and tell you if they think any areas need further investigation.

When you first contact a lender or intermediary about your mortgage needs, they should give you their IDD. This document sets out essential information about the level and scope of mortgage service they provide.

Each monthly mortgage payment includes interest for that calendar month but your first payment also includes initial interest for the first part calendar month of your mortgage too.

You only pay the interest on your loan for the whole mortgage term. You can arrange to repay the capital at the end of the mortgage term in a number of ways, for example, investing in an Individual Savings Account (ISA), through an endowment policy, or through a personal pension plan. Whichever method you choose, you will be responsible for making sure you can repay the amount you have borrowed at the end of the mortgage term.

The Key Facts Illustration is a summary of the key information relating to the mortgage you wish to apply for and how it relates to you as an individual. You must have been given a KFI for the mortgage you wish to apply for before you apply.

The size of the loan as a percentage of the value of the property or the purchase price of the property.

A mutual building society is owned by its members (see Mutual building society). As the owners of the society, the members have certain voting rights to influence the affairs of the Society.

If a lender approves an application for a mortgage, they will make you an offer; this will be subject to the lender's terms and conditions.

Insurance that pays your monthly mortgage payments, normally for a specific period, if you are unable to work because of redundancy, sickness or accidents.

A mutual building society is owned by its customers, ‘the members’, and run for their benefit. Unlike banks, mutual building societies do not have to maximise profits to pay outside shareholders.

If you move home during any tracker, discounted, or fixed rate period, you can usually transfer ('port') the rest of the tracker, discounted or fixed rate left to run to a new mortgage on a new property, without paying an early repayment charge.

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

Where you move your existing mortgage to a different lender without moving home.

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.

The property which the lender can sell to repay the loan if the borrower does not keep up the mortgage payments.

The standard variable rate interest rate is the normal interest rate lenders change. This rate can change from time to time.

This is an instruction in writing, given by a current account holder to their bank or building society to make periodic payments.

These documents are usually provided with a Mortgage offer. They give more information about how your mortgage works.

With a tracker mortgage rate (TMR) mortgage you benefit by paying an interest rate that follows an independent interest rate (e.g. The Bank of England repo rate) throughout the tracker period. You usually pay a set amount above or below the TMR for a set period from the start of your mortgage. The rate you pay will change if the independent rate changes but you will not pay more than the set amount above or below the TMR during the TMR period.