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.
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T
TAP
- Please see Total Amount Payable (TAP)
tax free cash sum
- optional withdrawal of a lump sum from a pension fund on retirement.
TCC
- total cost of credit - total amount payable under a credit agreement less the principal.
term (mortgage)
- length of time before the mortgage loan must be repaid.
term assurance
- simplest form of life assurance. The insured person or persons are covered against death within a fixed period subject to the payment of the premiums as they fall due (normally monthly or yearly).
If an insured person dies within the policy term the sum assured is paid out. If all insured persons survive the term the premium has been spent and the insurance ends with nothing being paid to the policyholders.
thatched roof
- Insurers will normally impose special terms for fire insurance on thatched properties. It is advisable to check that full fire cover is available with an insurer acceptable to the lender before proceeding.
threshold
- loan to value ratio above which mortgage higher lending charge is payable.
timber framed
- method of house construction.
Timber framed properties have traditionally suffered from poor damp-proofing and this restricts the number of lenders willing to accept them as security. Modern building techniques have largely removed these difficulties and properties constructed since about 1980 should be acceptable security to most lenders.
top-up loan
- form of second mortgage normally used to provide an overall loan in excess of the loan to value ratio allowed by the primary lender.
Top up loans will invariably be charged at a higher rate than the first mortgage and will frequently carry onerous repayment charges.
Total Amount Payable (TAP)
- total due to the lender over the lifetime of the credit agreement, including all fees and other associated charges from the lender.
tracker
- A mortgage with an interest rate that is usually linked to a particular rate that is set independently from the lender and moves up or down with it.
tracking
- process of following the progress of a loan application. This information should be fed back from the lender or packager to the introducer.
treasury product
- a mortgage that has conditions that control the future of the interest rate, so that the rate is not totally subject to market interest rate movements. Typical examples are fixed rates and capped rates.
typical APR
- - example of the annual percentage rate for a given mortgage product, normally used in an advertisement in order to comply with the requirements of the Financial Services Authority rules as well as the Consumer Credit Act (Advertising Regulations).
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