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Accessibility is the degree to which a product, device, service, or environment is available to as many people as possible.
We are committed to ensuring that all our products and services are easily and equally accessible to all our members, enabling disabled people to conduct their business with us without difficulty.
Optional cover providing protection for accidents that might damage the permanent structure of your home. For example putting your foot through the ceiling when you are in the loft. Included as standard with our 5 Star Home Insurance cover.
Optional cover providing protection for accidental loss or damage to your home contents. For example spilling paint on your carpet or damaging an ornament. Included as standard with our 5 Star Home Insurance cover.
Sometimes called a further advance. This is the term used when an existing mortgage customer wishes to increase their mortgage borrowing, which can be done 6 months after the main mortgage loan has completed. Additional borrowing is often used to fund home improvements but can be taken for any purpose (except capital raising).
An initial document from your lender that gives you an idea of the amount they are likely to lend you. This certificate is not a guarantee, but is often needed when dealing with estate agents, so they have an idea of the size of your mortgage and if you can afford the property. Also known as a ‘lending decision’ or ‘decision in principle’.
AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and compounded once a year.
An AGM is held every year to elect the board of directors and inform their members of previous and future activities. It is an opportunity to receive copies of the company's accounts as well as reviewing financial information for the past year and asking any questions regarding the directions the business will take in the future.
An annuity is bought with the fund built up in a money purchase pension scheme, and is a product that guarantees an income for life.
Anti-virus software will detect and delete viruses that attempt to get on to your computer.
Anti-virus is only as effective as the last update so you should update your anti-virus signatures and software regularly. If you use anti-virus software you should regularly download updates from your anti-virus software supplier.
The Annual Percentage Rate (APR) is the total cost of a loan, credit card or mortgage taking into account all charges, including interest payments, arrangement fees etc. This can be used to compare the cost of different mortgages on offer from different lenders.
This is a temporary agreement for those who have previously had payment difficulties, allowing you to pay more than the normal monthly payment. This allows you to pay arrears, or the shortfall that arose during a period when you were making concessionary payments, without incurring any charge for overpayments which might otherwise arise under the terms of an early repayment charge.
An account is defined as being in arrears when the due date has passed and payment for that month has not been made.
These are fees that are charged when an account is in arrears. Any charges applied will be added to your mortgage account and interest will be charged on them.
A policy that you pay for, and that pays money to your next of kin when you die.
The Bankers Automated Clearing Service (BACS) is a free service for making direct credits and debits. Payments using BACS will usually take three to four working days to credit the beneficiary's account.
A balance transfer is when you move an existing balance from one credit card to another.
Responsible for setting interest rates, issuing bank notes and maintaining a stable financial economy; the Government bank and also a lender for commercial banks.
A cheque drawn on the bank or building society itself against either a cash deposit or money taken directly from your own bank account. A banker's draft is a secure way of receiving money from someone you don't know and where cash is inconvenient. Banker's drafts are commonly used for large purchases such as homes and cars.
The interest rate set by the Bank of England Monetary Policy Committee which is used as a benchmark by lenders to set their own rates, which would generally be higher. This is reviewed each month throughout the year and can fluctuate (go up and down)
A variable rate, guaranteed to be no more than 2 percent above the Bank of England base rate. You have the flexibility to make overpayments without incurring an early repayment charge.
The Base Mortgage Rate is not available for new mortgage deals and only applies to customers coming to the end of their deal where the product was reserved on or before the 29 April 2009.
If you choose to switch to a new Nationwide mortgage product , the new product will currently revert onto our Standard Mortgage Rate (SMR) not the Base Mortgage Rate (BMR). The SMR has no upper limit or cap and you wouldn’t be able to revert to the BMR at a later date.
A special type of loan which is taken out to overcome a short term cash flow problem, usually needed when you buy a property before you sell.
A type of insurance that covers you financially for any damage to your building (e.g. fire, flood, wind). Sometimes called ‘home insurance’ when grouped together with contents insurance
Specific mortgages that are aimed at those that buy property to rent out
Card Protection provides valuable protection in case you lose your credit, debit or store cards or if they are stolen.
Your Card Security Code is the last three numbers that appear on the back of the card you are using to make the payment.
The amount of money you have actually borrowed, or still owe on your property (not including interest or other charges)
A Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something. It applies to assets that you own, such as shares or property. There's a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. Sometimes you may have no tax to pay.
Where you pay off part of the ‘capital’ (amount borrowed) as well as interest each month (as opposed to ‘interest only’). This usually means that everything (capital and interest) will have been fully paid off by the end of the agreed term. Also known as a repayment mortgage
Card reader is an extra level of security used by Nationwide to reduce fraud when you access your accounts or shop online. It uses something you have (your FlexAccount Visa debit card) and something only you know (your Visa debit card PIN) to generate a unique eight-digit passcode for you to access your Internet Banking service and to authorise transactions.
The Clearing House Automated Payment System (CHAPS) is used to transfer cleared sterling funds within the UK, for same day settlement. There is a £30 charge for CHAPS payments. Same day CHAPS payments can only be made if actioned/ordered before 3pm.
The Child Trust Fund was a government backed savings and investment account for children. Child Trust Funds are no longer available, however every child born between 1st September 2002 and 2nd January 2011 will receive a voucher for £250 that can be used to open a Child Trust Fund account.
Chip and PIN is a system which allows you to approve purchases made with your credit or debit card by entering a four-digit PIN number which only you know. This is more secure than just a signature which could be forged. For security, you shouldn’t write your PIN number down or tell it to another person.
Citizenship is about how we can use our products, services, campaigning and community investment collectively to deliver a greater social impact.
Something of value that is given as a guarantee to the lender that you are able to payback the loan; in the case of mortgages it is the house itself
Something, typically money, awarded to someone for loss, injury, or suffering
The final stage of the sale when the ownership changes hands from the seller to the buyer.
The material used to build the wall of the insured property i.e. brick or other material.
Insurance against damage to or theft of the contents of your house including furniture and furnishings, TV and audio, all electric goods and appliances, clothing and jewellery.
We will automatically renew your insurance policy every year without changing the payment method.
The process of transferring ownership from one person to another.
A cookie is a text file placed on your hard drive by some web pages that you have visited. Cookies may contain information about you and your preferences. Only the information that you provide, or the choices you make while visiting a website, can be stored in a cookie. For example, the site cannot determine your e-mail address unless you choose to type it. A cookie does not give the website access to the rest of your computer. Only the site that created the cookie can read it.
Is an order made in a county court for a debt to be repaid in England and Wales.
Credit rating is a rating system used by financial institutions, to judge an individual or company's creditworthiness. Depending on how many points the applicant gets when his/her personal details are run through the rating system, the financial institution will either accept or reject the risk. Financial institutions rely on computerised credit rating systems, and co-operate with each other in providing details of bad credit risks.
Credit reference agencies are organisations that gather information about people and businesses across the UK. This information comes from lenders such as banks, credit card companies and fraud prevention agencies, as well as records in the public domain.
Credit report is a report issued by a credit agency usually for a small fee which highlights someone's past purchase behaviour and credit rating.
Credit scoring is a way of assessing someone’s financial status. This is used to decide which credit facilities can be offered to customers.
A credit search is when we carry out a search on your name and address with a credit reference agency to help us understand more about your credit history. Each time a search is done it is noted on your credit record to let other organisations know that we have asked for information about you.
With a Nationwide mortgage your interest is calculated daily, which means you only pay interest on what you owe.
To replace multiple debts with a single debt, which often has a lower monthly payment and a longer repayment period.
It may be possible to increase your mortgage or personal loan to pay off debts, but it’s best to seek advice before doing this.
You need to think very carefully before securing other debts against your home as your home may be repossessed if you do not keep up repayments on your mortgage.
A type of Pension scheme which promises a certain level of retirement income to its members, determined by the member’s salary and length of service, rather than the value of their pension fund. This is sometimes called Final Salary or Career Averaged Revalued Earnings (CARE).
A type of pension scheme where the benefits are determined by the fund value. The size of the fund depends on how much has been contributed, where invested and how long for, and also charges. All personal pensions (including stakeholder pensions) and some occupational schemes are defined contribution.
A direct debit is an agreement between you and a company you want to pay on a regular basis. The agreement you make, authorises the company to collect varying amounts from your account on a regular basis. Because you’re covered by the direct debit guarantee, the company should always tell you what these amounts are - and when they’ll be collected.
This Guarantee is offered by all banks and building societies that take part in the Direct Debit Scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society. If the amount to be paid or the payment dates change, the company, will notify you normally 10 working days in advance of your account being debited or as otherwise agreed. If an error is made by the company or by your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid. You can cancel a Direct Debit at any time by writing to your bank or building society. Please also send a copy of the letter to the company.
An account becomes dormant when a customer makes no transactions on the account for three years or more. Customers who have a dormant account won't receive statements or cards for the account.
If you repay a loan or a mortgage early or make an overpayment of more than your overpayment allowance, an early repayment charge will be payable. Please check your latest mortgage offer for details.
A forged e-mail header to make it appear as if an e-mail came from somewhere or someone other than the actual source. The e-mail may look as if it came from your best friend or your bank when, in fact, it has been created by someone else unknown to you. This can be spam e-mail or an e-mail with malicious intent. In some jurisdictions, e-mail spoofing anyone other than yourself is illegal.
A long-term savings policy (usually between 10 and 25 years), which can usually be used to aim to repay the capital element of an interest-only mortgage at the end of the term.
These change the terms or conditions of your policy, or may give you different cover. Any endorsements that apply to your policy will be shown in your schedule.
Providers of these annuities take into account factors such as lifestyle and health and if they believe the annuitant (the person who is entitled to receive benefits from an annuity) may have a lower life expectancy, they offer a level of income that may be better than a conventional annuity.
The monetary difference between the current market value of a property and the mortgage loan held against that property.
EAR stands for Equivalent Annual Rate and is the compounded yearly interest rate applied to (i) the amount you’ve spent and (ii) any interest, fees and charges applied to your account.
An excess is the amount you pay towards any claim .
There are 2 types of excess, a voluntary excess and a compulsory excess. A voluntary excess is selected by you and a compulsory excess is applied by the insurer (dependent on certain criteria) and is in addition to any other excess. The higher the voluntary excess you chose, the lower the premium you will pay.
Charged by some lenders when you pay off your mortgage early.
Encryption is used to scramble information to protect it from those who aren’t authorised to access it.
Many lenders require that you stay with them for a certain period after your deal ends. Nationwide do not charge extended tie-ins on any deal.
Formed as one of the successors to the Financial Services Authority (FSA). The FCA regulate the financial services industry in the UK.
The FTSE is an independent company wholly owned by London Stock Exchange. The FTSE 100 is the index which tracks the top 100 UK companies by market capitalisation.
A firewall is a piece of software or hardware that provides a protective barrier between your computer and the Internet. A firewall will prevent intruders or hackers from gaining access to your PC and should be updated regularly. Popular personal firewall software such as McAfee Internet Security Suite, Norton Internet Security, or Zone Alarm can help to protect your computer.
A person buying their first property or who hasn’t had a mortgage for a certain period of time (this is 3 years with Nationwide).
This is the standard deadlock, which offers moderate protection to the main doors in your home used for:
Any of the above will qualify you to answer yes to the question on all doors having 5 level mortice locks.
A fixed rate loan means the interest rate stays the same throughout the term of the loan.
A fixed rate mortgage provides the security of fixed mortgage repayments until the end of the deal period, no matter what happens to interest rates.
Nationwide offers the following flexible mortgage features as standard:
Any mortgages reserved after this date will no longer include this facility.
Where the sale includes the property and the land on which the property is built, and you have complete ownership of both for an unlimited time
A person who guarantees you will pay the mortgage repayments. If you don’t pay they are liable to have to pay them themselves. Often parents or relatives are guarantors for first time home buyers to help them to afford a property.
Your gross annual income is the amount you receive each year before tax is deducted. If you receive a pension or other benefits you can add the total you would receive in one year and include this as your income.
Gross rate means that credit interest is paid without income tax being deducted. You can receive your interest paid gross if you are a non-tax payer and have completed an Inland Revenue R85 form.
Some lenders impose a Higher Lending Charge if you only have a small deposit. At Nationwide, we don't.
Hire purchase is a loan linked to buying something specific, such as a car. It’s a way of being able to use what you've bought before payment is completed.
Once you sign the agreement you can drive the car away the same day.
A Government initiative to help eligible applicants in England to buy their first home. Entitles applicants to a loan of 30% of the cost of the property (called an ‘equity loan’), which must be paid back when the property is sold.
A report on the condition of the property showing the value of the property, any major faults and estimated costs to fix;though it does not include any detailed, or minor issues.
24 hour assistance if a home emergency occurs and you need a tradesman to make your home safe, secure and prevent further damage. You can cover up to £500 to deal with problems such as roof, plumbing and drainage damage, main heating system and domestic power supply failure, plus damage to your home security.
This is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Premiums and payments are not linked to your mortgage and are payable to a separate policy.
A person selling one property and purchasing another property.
This type of insurance can provide an income in the event that you can’t work because of an accident, illness or unemployment. There are 2 types, long which replaces income up to retirement and short which provides an income for a defined period of time i.e. 12 months
A person who gives independent, unbiased advice and unrestricted advice on retail investment products, acting in the best interest of the client.
A tax-free savings account, where the interest earned does not need to be declared on the savers tax return. There are 3 types of ISA available, a cash ISA, a Stocks & Shares ISA and a Junior ISA.
A general increase in prices and fall in the purchasing value of money.
Inheritance is the practice of passing on property, titles, debts, and obligations upon someone's death.
Compensation for specified loss, damage, illness or death, in return for a premium.
A tax imposed on general insurance premiums by the government. This is included in the price of your home insurance.
Individual Savings Accounts are a tax-efficient way to save and invest. You can hold both a Stocks & Shares and a Cash ISA in the same financial year. In total, you can save up to £11,520 in ISAs this tax year (2013-2014).This full amount can be invested in a Stocks and Shares ISA or £5,760 of this amount can be invested in to a Cash ISA. A Stocks and Shares ISA available through Nationwide will allow you to invest in Cash, Fixed Interest Securities, Commercial Property and Equities. Cash ISAs are deposit savings accounts available through Nationwide on either a fixed, notice or instant access basis. A tax year runs from 6th April one year to 5th April the next.
An instant access savings account is an account that gives you instant access to your savings funds when you need them. Interest is usually paid on the money in the account. Interest rates vary depending on balances.
No interest is charged on money that you borrow.
Mortgages: This is the rate at which the lender calculates the interest they charge the borrower for the mortgage, expressed as a percentage.
Savings: This is the rate at which is paid to an investor for money that they have invested in a savings account.
With interest only mortgages, your monthly payments only cover the interest on the amount you owe (so you're not reducing the outstanding sum each month).
You will need to put additional money aside to repay your mortgage at the end of the term, for example into an investment such as an endowment policy or ISA.
The online banking service available from Nationwide. Find out more about our Internet Bank.
Putting money or capital into something, with the hope that you will get a profit from it at a later date; for instance you can invest in assets such as Cash, Fixed Interest Securities, Commercial Property and Equities. However, asset values can move up or down so you must be prepared to invest for a period greater than 5 years.
This sets out details of the mortgage product that a customer is interested in. All mortgage lenders are required to set out the details in a Key Facts Illustration in the same format, so it’s easier for you to compare different mortgage deals.
A Government department that records registered land in the UK (or ownership), along with details of that land such as mortgages or sales.
A contract that conveys land from one person to another for a specified period (e.g. 99 years), usually in return for rent.
This provides 24 hour access to personal legal advice over the phone and cover for legal costs up to £50,000 for help with employment disputes, property disputes, personal injury claims, contractual disputes, motoring prosecutions and tax protection. You also have cover for the irrecoverable loss of your salary or wages if you attend jury service.
Moving your mortgage to Nationwide results in legal costs, and we will normally pay for these. However there are some items that we don't pay for. These include mining or any other unusual search fees, fees for the first registration of the title at HM Land Registry, dealing with a change of name on the title deeds or a transfer of equity and any additional legal work needed to put your title deeds in order.
Legal tender varies by country – it is the money recognised in that country as valid tender/currency to buy goods and services. In the UK, the legal tender is Pound Sterling.
These are the debts you owe to creditors, which may include your mortgage, car loan, credit card debt, etc.
Also called life insurance, it is a type of insurance that will pay an amount to your estate when you die. This can be arranged to pay out a set lump sum or a decreasing amount that reduces in line with a mortgage.
A limit set by HM Revenue & Customs on the combined value of all pension schemes held by an individual (before a tax charge applies).
An annuity is bought with the fund built up in a money purchase pension scheme, and is a product that guarantees an income for life.
The loan to value represents the amount you are looking to borrow (or the remaining amount of your existing mortgage) as a percentage of the value of the property. For example, if a property is valued at £100,000 and you have a £80,000 loan, the LTV is 80% (80,000/100,000 x 100 = 80%).
A member means a customer with a Nationwide current account, savings account or mortgage. The following product holdings do not carry membership rights: deposit accounts, personal loans, credit cards, insurance products, products offered by subsidiaries of the Society such as Nationwide International or UCB Home Loans.
Mobile Banking is available for iPhone and AndroidTM phones. You'll need to download it from the App Store for iPhone or Google PlayTM Store for Android phones.
Please note: to use the Nationwide Mobile Banking app you will need to be an existing Internet Banking user.
Simply, it means a loan. It’s an agreement to borrow money in order to buy a property, with the property belonging to the lender until all the money has been repaid by the borrower. Once the money is fully repaid, the property then belongs to the borrower Mortgage Exit Administration Fees - See 'Redemption charge'.
This insurance can cover your mortgage payments if you can’t work because you’ve become unemployed, or can’t work because of an accident or illness.
But this type of insurance has many exclusions, so make sure you check for instance how long it will cover your payments for.
Nationwide has mutual (as opposed to Public Limited Company) status, which means that we are owned by and run for, the benefit of our members.
This is usually when house prices fall and the value of the property is less than the amount you borrowed.
Where a property is in an area designated as a neighbourhood watch area by the National Neighbourhood Watch Association (NNWA).
Net rate of interest is the interest rate payable after any income tax is deducted (if you do pay tax).
The definition of a 'new build' means a property that has not been occupied within two years of being newly constructed, converted or refurbished.
You won't be tied-in to any extended Early Repayment Charges.
Legal notice given by the mortgage lender detailing a payment default (missed payments) by the borrower. This notice will also contain details of the steps the borrower must take to pay this off and by what date, otherwise the property may be taken over by the lender (see Claim for possession).
Types of pension scheme only available through employers and run by pension scheme trustees. There are two main types - defined benefit (final salary) and money purchase (defined contribution).
A type of mortgage that allows you to save on the interest you will pay on your mortgage debt by ‘offsetting’ any savings you (or perhaps family/friends) have linked to your mortgage. For example if you have a mortgage of £120,000 and put savings of £20,000 with your lender, in this type of mortgage you would only pay interest on £100,000.
Online banking allows customers to conduct financial transactions on a secure website. At Nationwide we offer Internet Banking.
An annuity does not have to be bought from the pension provider. The Open Market Option allows customers to shop around and compare annuity rates and purchase an annuity using their pension fund with another insurance company. Competition in the market means the level of annuity income offered in return for a pension fund varies between different annuity providers. Some annuity options are also only available with certain providers.
An overdraft is where money is withdrawn from your account and the available balance goes below zero. If you have an arranged overdraft and the amount overdrawn is within the authorised overdraft limit, then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.
An overdraft extension is an increase in someone’s existing overdraft limit for a temporary or permanent length of time as agreed with the bank.
When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft.
The Overdraft limit is the amount of money set up in agreement with your bank that you can overdraw on your account. There is a charge for overdrafts.
This is when you pay more than your required minimum monthly payment and build up an overpayment reserve. This enables you to pay off your mortgage or personal loan earlier, or make underpayments in the future (conditions apply).
'Per Annum', which means 'each year'.
Where you choose to split your loan so that you repay part of it on an interest-only basis and part of it on a repayment (capital and interest) basis each month.
For mortgages reserved on or before 3rd March 2010 you can apply for a payment holiday of between three and twelve months if:
you've had your mortgage for more than one year, and
your mortgage is less than 80% of the value of your home at the end of your payment holiday (conditions apply).
If you want to find out more information or apply for a payment holiday please call us on 08457 30 20 10
An insurance product that enables consumers to insure repayment of loans if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt
A pension is a type of tax-efficient investment designed to hold funds until you retire. Typically at retirement, many pensions will offer the option of withdrawing an amount equal to 25% of its value tax-free. The remainder of the investment may then be taken as an income either through an annuity or as a regular withdrawal.
Most pension schemes include the option to take a portion, usually 25%, as a lump sum without any deduction of tax (subject to certain limits).
To be considered a Permanent Resident of the UK, you must have Indefinite leave to remain in the UK and you should consider the UK as your home.
A personal loan is a convenient way of borrowing money for almost any purpose, and fixed monthly repayments mean it's easy to budget your finances without having to worry about changes to interest rates.
This is the four-digit number that you enter into a cash machine when you want to take out cash, and that you use when you pay with your chip and PIN card.
Never give this number to anyone, or write it down.
Optional additional cover for accidental loss or damage to items that you usually take out of your home. For example:
Clothes and personal Items, Camera & Video Equipment, Portable musical instruments, Personal Laptop computers, Camping equipment (but not whilst in use)
Sports equipment (but not whilst in use), Pushchairs & wheelchairs, Children's electric toys, Telescopes & binoculars and Money.
The cover is for anywhere within Europe and for up to 60 days elsewhere in the world. If you have any of these items that are worth more than £2,000 they will need to be listed on the policy.
Most of the mortgage products available through Nationwide are "portable" which means that they may be transferred from one property to another when you sell one property and buy another (terms and conditions apply).
A fee charged on some mortgages to secure a particular mortgage deal. For mortgages reserved on or before 3rd March 2010, this was known as a reservation fee.
This is an alarm installed by a NSI (incorporating NACOSS & ISI) or SSAIB approved company, and is annually maintained by that company.
NSI stands for "National Security Inspectorate" and SSAIB stands for "Security Systems and Alarms Inspection Board". Both these organisations are independent and provide inspection certification services across the security industry.
When you apply for a mortgage we may ask you to pay a valuation fee to cover the cost of valuing your property. The valuation fee is payable prior to valuation and is non-refundable if the valuation is carried out. The valuation is very basic and is carried out for our benefit. We strongly recommend that you have a more thorough survey undertaken, such as a homebuyers report.
This will tell you about the quality and condition of the house you want to buy. There is an additional fee for this service, which can be arranged through Nationwide.
The PRA works alongside the Financial Conduct Authority (FCA) creating a “twin peaks” regulatory structure in the UK.
On 1 April 2013 the PRA became responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. In total the PRA regulates around 1,700 financial firms.
Nationwide buildings insurance covers the rebuilding cost of your home if it is damaged or destroyed by a number of different events such as storm, fire, flood and subsidence.
Buildings means the home and its walls, terraces, gates, fences, hedges, paths, drives, hard courts, patios, swimming pools, fixtures and fittings (but not television, radio and satellite dish aerials, aerial fittings and masts), ornamental ponds and fountains, tanks, pipes and cables serving the building for which you are legally liable.
The reinstatement value is not the same thing as market price. The reinstatement value is the cost to fully rebuild your home, including site clearance and legal fees. The cost of rebuilding your home varies, depending on where you live.
The cost to rebuild your home will be stated on your insurance renewal or policy document. If it is a new property and you have a mortgage it will be stated in your lender's valuation report.
Note that it is your responsibility to ensure that you are adequately insured. If necessary you should obtain your own insurance valuation from a surveyor.
If you enter into a new mortgage with Nationwide and subsequently repay your mortgage more than ten years before the natural term, you will pay a charge (currently £90) unless you are taking a new Nationwide mortgage at the same time.
When you move your mortgage to another lender (adding to or replacing your existing mortgage) without moving home. Usually people remortgage to save money by taking a better deal with another lender, and sometimes also to get cash for e.g. an extension, car or other purchase.
Each month you pay off part of the ‘capital’ (amount borrowed) as well as interest. This usually means that everything, capital and interest, will have been fully paid off by the end of the agreed term of the mortgage
A fee charged on some mortgages to secure a particular mortgage deal. For mortgages reserved on or before 3rd March 2010, this was known as a reservation fee.
This is where a property is ‘taken back’ by the lender if the borrower fails to make the mortgage repayments. The property is then sold so the lender can get their money back, usually a last resort for the lender – always let them know as soon as possible if you are struggling with repayments.
Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss.
A secured loan is a loan that is backed by assets belonging to the borrower, normally your home. This reduces the risk for the lender and may enable the borrower to obtain better terms for the loan. However if the borrower fails to keep up repayments on the loan then the lender could seek to use the assets that the loan is secured against to repay the outstanding debt. An unsecured loan is not backed by any assets belonging to the borrower.
Interactions among people in which they create, share, and/or exchange information and ideas in virtual communities and networks through an internet connection.
A sort code is the bank code used to route money transfers. Your bank sort code can be found on your cheque book/paying in book or statement. It's made up of six digits and grouped in pairs eg. 00-00-00.
The one-off tax you would need to pay the Government for your property if it’s over a certain value. Currently the rate is 1% on properties over £125,000 but less than £250,000; 3% on properties between £250,001 and £500,000; 4% on properties between £500,001 and £1 million; 5% on properties between £1 million and £2 million and 7% on properties over £2 million. The rate is 15% for properties over £2 million if purchased by certain persons including corporate bodies.
If properties are bought in an area designated by the government as ‘disadvantaged’ a higher threshold of £150,000 applies.
A variable rate, which is not subject to any upper limit or a cap and has the flexibility to make overpayments without incurring an early repayment charge.
The Standard Mortgage Rate is not available for new mortgage deals and only applies to customers coming to the end of their deal where the product was reserved on or after the 30 April 2009. The Standard Mortgage Rate is not available for new mortgage deals and only applies to customers coming to the end of their deal where the product was reserved on or after the 30 April 2009.
This is a regular payment arrangement you have set up with your current account provider to make a payment or transfer to someone.
Living in a way that minimises the cost to the environment.
An inspection of the property by a qualified surveyor carried out before buying a property (for example a Home Buyers’ Report or Structural Survey also known as ‘building survey’.
When a customer comes off one mortgage deal and moves to a new mortgage deal with the same lender.
Our tracker products offer the option to switch to a fixed rate within our 'Switch and Fix' range at any point in the deal period, without paying Early Repayment Charges on the tracker mortgage.
Also known as a CHAPS transfer, this term is used to refer to sending funds from one bank to another electronically. There is usually a fee involved.
As the name suggests, this is banking over the phone. You can get details of your balance, pay bills, or report lost or stolen cards.
The documents held at the Land Registry that prove legal ownership of a property and all other dealings with that land; England and Wales, Scotland and Northern Ireland all have their own Land Registries.
Tracker mortgages often have a lower limit called a tracker floor or a collar. This means that if the Bank rate falls past this point, any cut will not be passed on to customers.
With a tracker mortgage, the interest rate you are charged tracks the Bank of England's (BoE) base rate up and down by an agreed percentage.
Thus your payments will go up and down in line with the rate changes, except where the BoE base rate goes below the tracker floor.
An insurance that is intended to cover medical expenses, financial default of travel suppliers, and other losses incurred while travelling, either within one's own country, or internationally.
By making overpayments to your mortgage account, you can improve your flexibility when it comes to underpaying in the future. Any overpayments you make during each calendar year, within your product’s annual overpayment allowance, will contribute to and build up an overpayment reserve. For example, if you have an overpayment allowance of £10,000 over the course of a year and make a £1,000 overpayment in one month, you can use the £1,000 to pay reduced monthly payments at any time up to the value of the credit balance you have built up, provided all of your accounts are up to date. So if you find you want some flexibility with your monthly payments for a few months, your overpayment reserve can cover your monthly payments, or allow you to ‘underpay’ to reduce your monthly mortgage payment.
An amount of money borrowed without any property or goods used as security against it.
Valuables are insured as part of your contents cover up to a limit of 30% of your contents sum insured. You can choose to increase this limit if you need more.
If you have any of these items that are worth more than £2,000 they will need to be listed on the policy.
The property inspection carried out by a surveyor or estate agent to assess the current market value of a property.
Also used by lenders to decide how much money they are willing to lend you (also called land valuation or real estate appraisal).
The charge for obtaining a valuation report of a property, also known as a valuation cost. Usually the fee increases with the value of the property.
An alternative to a specific guaranteed period, which allows the value of the initial fund used to buy the annuity to be protected as a potential benefit in the event of early death. The protected value is selected at outset and any benefit on death depends on the gross income payments paid out being less than the protected value, any balance is subject to a tax charge of 55%.
This is where the interest rate offered by the provider varies and can move up and down with market fluctuations.
Another word for the person selling the property.
An online security system for credit card transactions. Verified by Visa (VbV) is designed to stop unauthorised purchases and make online shopping even more secure.
Key operated window locks to all opening windows and skylights.