EyeOnKey terms A–Z
Quick definitions in plain English. Meanings and rules can vary by country and provider.
- Arrears
- Missed mortgage payments.
- Conveyancing
- The legal work of transferring property ownership.
- Deposit (down payment)
- The part of the price you pay upfront from your own money.
- Early repayment charge
- A fee for leaving a deal or paying off a large part early.
- Equity
- The part of the property's value that you own outright.
- Fixed-rate mortgage
- A mortgage with an interest rate that stays the same for an agreed period.
- Interest-only mortgage
- Monthly payments cover interest only; the full amount must be repaid separately at the end.
- Loan-to-value (LTV)
- The size of the mortgage compared with the value of the property, shown as a percentage.
- Mortgage
- A loan used to buy property, with the property acting as security.
- Negative equity
- When you owe more on the mortgage than the property is worth.
- Offset mortgage
- A mortgage linked to savings so the savings balance reduces the interest charged.
- Remortgage (refinance)
- Replacing your current mortgage with a new one, usually to change the rate or lender.
- Repayment mortgage
- Each payment covers both interest and part of the debt, so it is cleared by the end of the term.
- Stamp duty / transfer tax
- A government tax on property purchases. Rules and rates vary by country and region.
- Standard variable rate (SVR)
- A lender's default rate, often higher, that applies after a deal ends.
- Term
- The overall length of the mortgage, often 25 to 30 years.
- Tracker mortgage
- A variable mortgage that follows a base rate by a set margin.
- Valuation
- A lender's check of what a property is worth.
- Variable-rate mortgage
- A mortgage where the rate can change over time.
Mortgage basics: what a home loan involves
A mortgage is a loan secured against property to enable the purchase, renovation, or refinancing of real estate. Key elements include the principal (the amount borrowed), the interest charged on that principal, the repayment term, and any fees or charges. The borrower makes periodic payments that typically cover interest and some repayment of principal, and equity grows as the principal is reduced or the property value changes. Roles commonly involved are the borrower, the lender, a valuation professional, and a legal representative who handles transfer of ownership.
Core features such as the interest rate type, loan term, and repayment method shape monthly payments and overall cost. Fixed-rate arrangements keep the advertised interest rate unchanged for a set period, while variable-rate loans can change in response to reference rates or lender adjustments. Some loans are interest-only for a period, meaning principal is not repaid during that time, and others are structured to progressively reduce the balance. Loan-to-value (LTV) expresses the loan size compared with the property value and can affect pricing and eligibility.
Common terms you’ll encounter
Annual percentage rate and similar measures aim to show the combined effect of interest and many fees so different offers can be compared on a consistent basis. Fees you may see include arrangement or product fees charged at setup, valuation or appraisal fees, and charges for early repayment if a loan is closed in a tied-in period. A standard variable rate is a lender’s default rate you may move to after a promotional period, and a tracker or variable product follows a reference rate plus a margin. Understanding which costs are included in headline figures can help you compare scenarios.
Other practical terms include valuation (an assessment of a property’s market value), mortgage in principle (an initial estimate of borrowing capacity), offer (a formal lending proposal), conveyancing (the legal steps to transfer property ownership), and remortgage or refinance (moving an existing balance to a new deal or lender). Knowing the difference between a valuation and a full survey, and when legal checks and searches occur, can help you plan timing and budget for additional costs.
Tools, checklists and next steps
Calculators and estimate tools can illustrate how interest rates, loan term, and extra repayments affect monthly payments and total interest over the life of a loan. These tools use assumptions that may not reflect fees, taxes, or lender-specific rules, so results should be treated as educational estimates rather than offers. When using interactive tools, review the assumptions shown, run multiple scenarios, and note how changing one input alters outcomes to build an intuitive sense of trade-offs.
As you explore terms and tools, consider grouping reading around topics such as rate types, upfront and ongoing costs, the purchase process, and the legal steps involved in transfer of ownership. Keep documentation and quotations for comparison, and review contract language carefully when an offer is presented. For personalised guidance on complex situations, consider seeking independent, regulated advice from an adviser who can discuss your circumstances and local rules.