Understanding the terminology used in the home buying and refinancing process is not always easy. There are many mortgage-related words and phrases that may cause confusion.
Our Glossary provides a comprehensive list of mortgage terminology to help you.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
E
early repayment charge
- also known as an early redemption charge, or tie in period, this is a fee charged by the lender if the borrower pays off all or part of their mortgage, or they move the loan to another lender before an agreed date. These charges usually apply to most types of mortgage.
earned income
- income that is earned from an employment or self employment, as distinct from investment income from property or securities.
employed
- normally refers to a person (the employee) who has an open-ended contract of employment and has income tax and national insurance contributions deducted from their salary.
employer's reference
- a written statement from an employer confirming the borrower's employment, giving details of his or her salary and length of service; an essential requirement for assessing an employee's ability to repay the mortgage.
employment status
- the basis of an individual's employment: i.e. employed, self-employed, controlling director or not in employment.
endowment
- a life assurance policy into which you pay monthly premiums.
The proceeds of an endowment policy will be free from all taxes provided the policy has conformed to the qualifying rules. The insurance fund does, however, pay tax on the profits it achieves whilst the fund is growing.
energy performance certificate (EPC)
- a component of the Home Information Pack (HIP) Energy Performance Certificates highlight how energy efficient a property is by giving it a rating from A – G, where A is the most energy efficient. They also offer advice on how to save energy and reduce fuel bills.
equity
- the stake that you own in your home, i.e. the property value less the mortgage loan outstanding.
equity appreciation
- increase in the equity you have in your home.
exclusive products
- whilst such mortgage products are funded and administered by a particular mortgage lender, they are available only from certain mortgage brokers or other particular distribution channels.
existing liabilities
- your debts, other than an existing mortgage such as hire purchase, personal loans, school fees etc.
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